Diary of an African Cryptocurrency Miner(bloomberg.com)
bloomberg.com
Diary of an African Cryptocurrency Miner
https://www.bloomberg.com/amp/news/articles/2017-11-03/diary-of-an-african-cryptocurrency-miner
76 comments
Don’t the writers think we need to know whether his really small mining operation is profitable?
It seems like it is.
According [1] a 1080 Ti can produce about 675 hashes a second for Zcash. Using [2] we can see that one card would net him about $2.5 per day. For six cards we get ~$450 per month which is enough to pay his electricity bill and probably internet costs.
The graphic cards are quite costly and the payback time for the card thus pretty long.
[1] http://zcashbenchmarks.info/ [2] https://www.cryptocompare.com/mining/calculator/zec?HashingP...
According [1] a 1080 Ti can produce about 675 hashes a second for Zcash. Using [2] we can see that one card would net him about $2.5 per day. For six cards we get ~$450 per month which is enough to pay his electricity bill and probably internet costs.
The graphic cards are quite costly and the payback time for the card thus pretty long.
[1] http://zcashbenchmarks.info/ [2] https://www.cryptocompare.com/mining/calculator/zec?HashingP...
Good question..... I wonder why they skipped it. They mentioned electric bills , and skipped internet data plan.
From the little know I have not seen mining via Wi-Fi. I know of a country where everybody is using Wi-Fi, is it possible to mine in such a place?
From the little know I have not seen mining via Wi-Fi. I know of a country where everybody is using Wi-Fi, is it possible to mine in such a place?
Mining doesn't need to send much data, so it shouldn't matter at all whether you use wi-fi or dialup etc.
Please could recommend one (Wi-Fi) rig machine ?
Normally you use a computer, so all of those if you add a wifi adapter. If you have some kind of ethernet-only machine then use an external device (like another computer, or a router, or a raspberry pi) to turn wifi into ethernet.
as everyone knows, mining bitcoin has slim profit margins, due to hardware, electricity, increasing difficulty, etc.
So could mining an altcoin offer higher returns? I'm skeptical because if a coin is too profitable, people will mine the crap out of it and then dump it, sending the price plunging.
Since June, most alt coins have lagged bitcoin..there are simply too many of them and no differentiation. With very few exceptions, anything an altcoin does so does bitcoin.
So could mining an altcoin offer higher returns? I'm skeptical because if a coin is too profitable, people will mine the crap out of it and then dump it, sending the price plunging.
Since June, most alt coins have lagged bitcoin..there are simply too many of them and no differentiation. With very few exceptions, anything an altcoin does so does bitcoin.
This description has it backwards. When an altcoin is profitable, many people mine it, which sends the difficulty of mining skyrocketing. Remember that for most coins, the daily production is fixed. So when more people mine, it just gets harder to mine it. This means that the profit goes down, but the price of the coin is not necessarily affected.
It's also not really true that Bitcoin does everything that altcoins do. It's just that most of what altcoins try doesn't seem to matter much in the market, with obvious exceptions for stronger anonymity (xmr, zec) or smart contracts (eth).
It's also not really true that Bitcoin does everything that altcoins do. It's just that most of what altcoins try doesn't seem to matter much in the market, with obvious exceptions for stronger anonymity (xmr, zec) or smart contracts (eth).
This depends very much on whether the underlying algorithm is ASIC-resistant or not. The lessons learned from the BTC mining power laws prove that coins that allow for ASICs to be developed and come online will see the trajectory you have outlined. Less so for ASIC-resistant coins like XMR.
Bitcoin has slim profit margins in places where electricity is expensive. He runs the same equipment that we do in the West, but the cost of living, electricity, etc. is significantly lower, and so it is much more viable. This is the same reason massive ASIC farms are viable in China (where the operators are able to get incredibly cheap electricity), but not elsewhere.
Electricity and internet are not cheap in Africa. They are even costlier here. Cost of living is even higher in Africa. A tourist from Detroit visited few weeks ago, he was surprised that the cost of a plate of decent meal is higher in Africa. Standard of living should be compared along with cost of living.
I don't think you can say anything about 'Africa' as a whole and have it be very true. I just came back from 2 weeks in Ghana and I was struck by the opposite, really great food at really nice places was very, very cheap.
You can say some things about Africa. Electricity and connectivity are always more expensive. It's one of the most expensive data and infrastructure markets in the world.
Of course, there is massive variability as Africa is huge and diverse. But the entire continent has more expensive power than say, Germany, or something.
Also, stuff that is human powered (food, tailoring, etc.) are much cheaper. Again, lots of variability, but food in Ghana is going to be cheaper than food in say, Germany, or the US. Although you can certainly get expensive stuff in some areas (SA, TZ, etc.).
Of course, there is massive variability as Africa is huge and diverse. But the entire continent has more expensive power than say, Germany, or something.
Also, stuff that is human powered (food, tailoring, etc.) are much cheaper. Again, lots of variability, but food in Ghana is going to be cheaper than food in say, Germany, or the US. Although you can certainly get expensive stuff in some areas (SA, TZ, etc.).
deadbeef is, indeed, heavily subsidized in the US: those $1 McDonalds hamburgers are a bit of an anomaly. When I was living in Kisumu, I could get a decent meal that wouldn't kill me for a few dollars; I believe there were cheaper options for people with hardier stomachs.
Meanwhile, US mobile data prices are some of the highest in the world. I spend ~$40 month in the US for 2GB of data (before getting capped to low speeds). The last time I was in Kenya, 1GB ran about $4-5, so about 1/5 the price of my US plan. India (post-JIO) is ludicrously cheap right now: I just today got a 1GB/day 28-day plan for ~$5.
But, of course, all of this depends on income as well. The Kenyan data tends to be more expensive for everyday people because they buy it in rather smaller increments than 1GB (250MB or even 100MB at a time), which end up being more expensive per unit.
Here's some data comparing monthly mobile phone costs across the world, with various kinds of normalization, for your perusal: http://blogs.worldbank.org/opendata/where-are-cheapest-and-m...
Meanwhile, US mobile data prices are some of the highest in the world. I spend ~$40 month in the US for 2GB of data (before getting capped to low speeds). The last time I was in Kenya, 1GB ran about $4-5, so about 1/5 the price of my US plan. India (post-JIO) is ludicrously cheap right now: I just today got a 1GB/day 28-day plan for ~$5.
But, of course, all of this depends on income as well. The Kenyan data tends to be more expensive for everyday people because they buy it in rather smaller increments than 1GB (250MB or even 100MB at a time), which end up being more expensive per unit.
Here's some data comparing monthly mobile phone costs across the world, with various kinds of normalization, for your perusal: http://blogs.worldbank.org/opendata/where-are-cheapest-and-m...
Why voting me down? Please share your experience.
Mining specific alts with GPUs is currently profitable. You can use whattomine.com for an estimate.
It depends on what hardware you have available to you and what other limiting factors there are, hardware wise. Choosing what to mine is about efficient use of electricity, and miners make these micro economic decisions every day - but within the confines of what hardware they have. A SHA 256 ASIC is only ever going to mine SHA 256 coins, a Scrypt ASIC is only ever going to mine Scrypt coins. GPUs on the other hand, can mine a bunch of different things with just a change of software.
> as everyone knows, mining bitcoin has slim profit margins, due to hardware, electricity, increasing difficulty, etc.
It depends on what you do. You could mine today and sell a couple of years from now, profit margins (and losses) are usually only established when something is sold. Of course that leaves you open to a potential downside as well.
It depends on what you do. You could mine today and sell a couple of years from now, profit margins (and losses) are usually only established when something is sold. Of course that leaves you open to a potential downside as well.
> So could mining an altcoin offer higher returns? I'm skeptical because if a coin is too profitable, people will mine the crap out of it and then dump it, sending the price plunging.
And so therefore everyone that mined and sold had a lower return?
multipool mining has been around for like 5 years
And so therefore everyone that mined and sold had a lower return?
multipool mining has been around for like 5 years
Ethereum and Monero are good examples of protocols that are different from the Bitcoin protocol.
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That's exactly what the article says he does.
I want to invest in a mining index fund. Mine a bit of them all! Surely something will prove to have value long enough to sell.
Why do you need to bother mining them?
A much easier way to convert capital into cryptocurrency is simply to buy cryptocurrency.
A much easier way to convert capital into cryptocurrency is simply to buy cryptocurrency.
Heating.
What about the Internet in Africa? What about unreliable electricity. What about power outs? How will the miners cope?
A normal UPS should buy enough time to shut everything down in an orderly fashion and provide enough charge to run for a while.
Hashgraph is the future, not Blockchain/Bitcoin
This makes it pretty clear that the 419 scammers are onto the cryptocurrency thing. I wonder if the smart/big money is still riding this bubble.
Exactly what do 419 scammers have to do with Kenian who has worked hard to learn programming, was a top developer for Git awards and is learning about cryptocurrencies?
I guess a lot of people aren't at all familiar with Africas geography. I mean the whole article is called "Diary of an African Cryptocurrency Miner", presumably because Kenya was too specific and obscure for their target audience. If your mental map of a continent is largely "here be dragons", I guess it's easy to associate Nigerian scammers with Kenyan cryptocurrency miners, who live some 3500km and several international borders away.
It's not limited to Africa though. I'm from New Zealand, and I've had Europeans ask if I visit Japan a lot, because I'm so close (I'm about as close to Japan as Germany is). I've had Americans ask if I was ok when they heard news that tropical cyclones were hitting Queensland (I'm as far from Queensland as a Jamaican is from Ohio). And the hemisphere thing stumps so many people. Usually they just constantly forget that the seasons are reversed, but I've had one educated, multilingual gentleman from east Asia ask me if North and South mean the same thing in the southern hemisphere, or if they have opposite meanings.
It's not limited to Africa though. I'm from New Zealand, and I've had Europeans ask if I visit Japan a lot, because I'm so close (I'm about as close to Japan as Germany is). I've had Americans ask if I was ok when they heard news that tropical cyclones were hitting Queensland (I'm as far from Queensland as a Jamaican is from Ohio). And the hemisphere thing stumps so many people. Usually they just constantly forget that the seasons are reversed, but I've had one educated, multilingual gentleman from east Asia ask me if North and South mean the same thing in the southern hemisphere, or if they have opposite meanings.
To be fair, New Zealand is about 1 AU from everything, so it’s especially difficult for a lot of us non-kiwis to grasp. :) A relative and I were just discussing this the other day: he was convinced Australia was further south than you until I got out my phone, I think because he was confusing New Zealand with New Guinea. I’ve noticed we do tend to heavily associate you with Australia in the States, too, so the Queensland question doesn’t surprise me. Most Americans probably mentally conflate Tasmania and NZ.
To your point, I could probably name most African countries but not place them exactly from memory, particularly in the interior and on the western coast. Niger is hot news in the U.S. right now, and we had a week or so of everyone collectively figuring out not only that it’s distinct from Nigeria but also proper pronunciation, simply because we don’t think about Africa much (which is lame, I agree). Legislators were surprised we had troops in Niger, which should really say a lot.
Geography education is already iffy in a number of places, and I imagine ubiquitous digital maps are going to exacerbate that problem the same way we are already losing the ability to memorize phone numbers. John Oliver has been having fun with this by highlighting the wrong country as a recurring gag on his show.
To your point, I could probably name most African countries but not place them exactly from memory, particularly in the interior and on the western coast. Niger is hot news in the U.S. right now, and we had a week or so of everyone collectively figuring out not only that it’s distinct from Nigeria but also proper pronunciation, simply because we don’t think about Africa much (which is lame, I agree). Legislators were surprised we had troops in Niger, which should really say a lot.
Geography education is already iffy in a number of places, and I imagine ubiquitous digital maps are going to exacerbate that problem the same way we are already losing the ability to memorize phone numbers. John Oliver has been having fun with this by highlighting the wrong country as a recurring gag on his show.
I didn't realize the Tasman Sea was that big. Of course I struggle to keep track of the relative size of all major bodies of water, really.
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Also, apparently he has "mastered the mysteries of code."
None, except he's the first to comment :)
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Crypto currencies definitely are a great alternative to local currencies in third world countries. I’m from one of those, lived through hyperinflation that wiped out my parents savings and left them with nothing at the end, watched the entire industries and countries get decimated bc they wouldn’t agree on which local currency to trade in, people work and get paid in money that is worthless next month. Whatever helps people in those places is great!
I suppose I'd have two questions about this.
One is what proportion of ordinary people could actually get access to bitcoins in third world nations.
Another is whether bitcoin mining will wind-up being a way to launder money and access to energy in the third world - we often hear about oil, diamonds and minerals being taken during conflicts in third world nations. If someone could turn oil into wealth with nothing more than an Internet connection and a portable server-farm, a whole range of abuses might be possible. It's been claim bitcoin mining in China can be a way to subvert currency controls already.
One is what proportion of ordinary people could actually get access to bitcoins in third world nations.
Another is whether bitcoin mining will wind-up being a way to launder money and access to energy in the third world - we often hear about oil, diamonds and minerals being taken during conflicts in third world nations. If someone could turn oil into wealth with nothing more than an Internet connection and a portable server-farm, a whole range of abuses might be possible. It's been claim bitcoin mining in China can be a way to subvert currency controls already.
> One is what proportion of ordinary people could actually get access to bitcoins in third world nations.
I don’t know about truly impoverished countries of Africa, but I have seen more Bitcoin storefronts and Bitcoin kiosks in South America and Eastern Europe than in wealthier countries of North America or Western Europe.
It’s also worth keeping in mind that Sub-Saharan Africa was very quick to adopt mobile payments. The countries may be poor, but millions of people may have phones even if they don’t have electricity or running water in their homes, and they are able to do a lot with those phones.
I don’t know about truly impoverished countries of Africa, but I have seen more Bitcoin storefronts and Bitcoin kiosks in South America and Eastern Europe than in wealthier countries of North America or Western Europe.
It’s also worth keeping in mind that Sub-Saharan Africa was very quick to adopt mobile payments. The countries may be poor, but millions of people may have phones even if they don’t have electricity or running water in their homes, and they are able to do a lot with those phones.
All you need to get access to bitcoin anywhere in the world is a <$40 smartphone and an account on localbitcoins.com.
Sort of. Some places have very limited coverage on LBC. I've gone through my old ads ($50 BTC!) and in Guatemala it is still sparse. There's a bit of money pitching it on Facebook groups and grabbing a 5-10%+ markup nickle and diming it.
What do you gain by controlling currency beyond corruption?
Actually it's the opposite. If you don't control the currency, you end up with a ton of corruption.
It is pretty obvious that you really experienced such policy .
Yeah, lived in a country through an embargo, several wars in the neighborhood, more horrible stuff than that in the economy too.
Bottom line: people are creative creatures. Either we have some rules we can all agree on and enforce them, or people will start inventing all sort of, erm, market optimizations techniques to survive and prosper.
Bottom line: people are creative creatures. Either we have some rules we can all agree on and enforce them, or people will start inventing all sort of, erm, market optimizations techniques to survive and prosper.
Not only mining, but also bitcoin gambling.
wishful thinking, sadly not backed up by the reality.
BTC is not helping much in Venezuela. basic goods are hyperinflated in both local currency, USD and BTC.
it's just that by looking at people who happens to own USD or BTC in the feel-good articles we have from there on this topic, they can afford much more than others because of better economic situation before the crisis.
BTC is not helping much in Venezuela. basic goods are hyperinflated in both local currency, USD and BTC.
it's just that by looking at people who happens to own USD or BTC in the feel-good articles we have from there on this topic, they can afford much more than others because of better economic situation before the crisis.
If there is inflation in non-local currency, wouldn't that point to massive supply chain problems on the ground. Can't fault currencies for that.
BTC is not helping Venezuela since there is a state induced apocalypse going on. No currency can help with that.
With less extreme inflationary events, like bad monetary policy, that do not destroy all supply chains, currencies like BTC should be able to help retain wealth.
BTC is not helping Venezuela since there is a state induced apocalypse going on. No currency can help with that.
With less extreme inflationary events, like bad monetary policy, that do not destroy all supply chains, currencies like BTC should be able to help retain wealth.
> wouldn't that point to massive supply chain problems on the ground
I'd like to point out such problems can be easily manufactured if some points in the supply chain are heavily concentrated.
I'd like to point out such problems can be easily manufactured if some points in the supply chain are heavily concentrated.
> BTC is not helping much in Venezuela. basic goods are hyperinflated in both local currency, USD and BTC.
As long as imports are allowed (or at least there is a black market), importers should be willing to sell for at USD and BTC, so in theory USD and BTC are still better than local currency.
As long as imports are allowed (or at least there is a black market), importers should be willing to sell for at USD and BTC, so in theory USD and BTC are still better than local currency.
Personally I feel that the big unfulfilled promise of Bitcoin is the financial inclusion of the Billions of unbanked worldwide.
Yeah. The moment I heard of it I thought this would be the ultimate goal. But it turned out to be a value store for the first world. No longer is it electronic cash, more like electronic gold.
Many working on that, obviously not with dinosaur Bitcoin as a currency. See Mojaloop, Stellar/IBM, Humaniq, WeTrust and a bunch more that I can't immediately remember.
But Crypto currencies are not immune to hyperinflation. And you may lose your key which is worse than having a currency of depreciating weight.
Keys are still easier to store and harder to confiscate than chunks of gold or fiat are. Can memorize them (worst case), store paper or tiny sd card in sock or shoe if afraid of it being confiscated or perhaps email it to you. Or tell part of it to different family members.
I think the correct setup is have three BTC accounts:
0) One for plausible deniability. You give this one away whilst under extreme pressure (torture).
1) For small expenses. This key you know yourself, in your head. Don't mix it up with #0. You could merge #0 and #1 if you feel relatively safe.
2) Savings. This key you give to multiple escrows.
0) One for plausible deniability. You give this one away whilst under extreme pressure (torture).
1) For small expenses. This key you know yourself, in your head. Don't mix it up with #0. You could merge #0 and #1 if you feel relatively safe.
2) Savings. This key you give to multiple escrows.
> Whatever helps people in those places is great!
What fraction of people in those places have access to reliable computing, connectivity and electricity?
What fraction of people in those places have access to reliable computing, connectivity and electricity?
http://allafrica.com/stories/201704251054.html
THERE are currently 960 million mobile subscriptions across Africa - an 80 percent penetration rate among the continent's population. Internet penetration is at 18 percent with 216 million internet users, according to the latest Jumia mobile trend report for Africa.
I don't know if mobile subscription includes data but you have Wifi at cafes and such.
THERE are currently 960 million mobile subscriptions across Africa - an 80 percent penetration rate among the continent's population. Internet penetration is at 18 percent with 216 million internet users, according to the latest Jumia mobile trend report for Africa.
I don't know if mobile subscription includes data but you have Wifi at cafes and such.
The vast majority, 80% at least.
The true promise of cryptocurrency :).
He would be better off reducing the electric money and buying coins
Historically, the data shows that this is the right answer.
This depends on whether or not you think the coins will appreciate in value. If you think the coin's current value is the likely projected value in 12 months, then buying coins does nothing but mining is profitable.
I was talking with a friend about where all the money for ICOS was coming from. Well anyone in the world can invest in your startup with no national or legal restrictions. No accredited investor checking, no IRS backup withholding for foreign nationals, no international wire transfer fees, no currency controls, no anti-money laundering procedures, etc. People like this Kenyan guy who has never had a bank account is who is investing in ICOs.
Except that paying into ICO is not investing, more like donating, with very little legal action if anything goes not as expected (e.g. the ICO "founder" parting with all of the money).
That donation becomes "speculation" if the token received from donating (i.e paying a price for a token) becomes tradable to other people.
Of course it is a questionable medium to speculating in, since there is no real mechanism holding the ICO-offerer to any obligation to deliver what they say they will deliver.
At least with a traditional stock market that is slightly more regulated, transparent, etc, we can reasonably expect that everyone from Apple to Zapos will attempt to deliver on what they say they will, with theoretical criminal charges being the price to pay for those who deliberately defraud investors.
Of course it is a questionable medium to speculating in, since there is no real mechanism holding the ICO-offerer to any obligation to deliver what they say they will deliver.
At least with a traditional stock market that is slightly more regulated, transparent, etc, we can reasonably expect that everyone from Apple to Zapos will attempt to deliver on what they say they will, with theoretical criminal charges being the price to pay for those who deliberately defraud investors.
This should have been the post link.