With rising unemployment and a never-ending economic crisis, Egyptians are now turning to Bitcoin as a way out.
Many Egyptians are attracted to Bitcoin as the Covid pandemic magnifies government inabilities, which has seen demand in the leading cryptocurrency spike in the last few months.
A leading member of the Bitcoin Egypt Community, Muhammad Abd el-Baseer said in an interview with Egypt’s Al-Monitor media outlet there had been a spike in new members, and that the interest in buying and mining Bitcoin was rising.
‘The number of miners in Egypt should be greater, since each one of the 16,000 members may train and guide many of their friends, family and neighbourhood zones,’ said Abd el-Baseer.
He blamed the government imposed lockdown for a shift towards Bitcoin, saying it was triggered by a desire to not have to rely on someone else for work.
‘The huge business shift to online work from home along with reduced working hours and curfews are encouraging thousands of Egyptians to invest their spare time in unusual online businesses like mining and trading of cryptocurrencies, most notably the Bitcoin.’
Big Demand For Bitcoin Mining In Egypt
Entrepreneurship is usually born out of crises, and Egyptians are looking towards the latest and most innovative industry, Bitcoin mining as a way out of this latest crisis.
In the same interview another miner explained how he was driven to invest his savings into Bitcoin mining after losing his job and seeing the unemployment rate get out of hand.
Prominent Egyptian economist Wael al-Nahhas believes the state of the economy is driving young Egyptians especially towards the Bitcoin industry.
‘Unemployment and recession resulting from the spread of the coronavirus and the precautionary measures taken are the main reasons behind the youths’ inclination toward Bitcoin trading and mining.’
But it’s not just the state of the economy that’s driving the Egyptian youth towards Bitcoin. As we know, Bitcoin offers a way out of government corruption. Something people in developing countries have suffered massively since time began.
And getting into Bitcoin mining allows Egyptians a way into a promising new industry without the need for much capital, and an industry they can turn into profits.
‘Many young Egyptians started investing in small amounts despite the increase in the value of the Bitcoin, said one Egytian miner. ‘They started mining satoshi, which is 100 millionth of a Bitcoin, and on a daily basis they are making profits of 4% to 5%.’
Learn About Bitcoin in Egypt
Bitcoin Egypt Community (Bitcoin Egypto) is one of Egypt’s biggest online Bitcoin communities and offers courses, advice, and consultancy for anyone interested in Bitcoin and other cryptocurrencies.
There’s the BitcoinTalk forum for the Arab world as well. It is a regularly updated space for everything Bitcoin and altcoins. The discussion centres around cryptocurrencies in the region, and is a great place to go for advice.
For anyone wanting to get into mining Bitcoin, r/BitcoinMining is an excellent subreddit for everything mining. Whether you’re wanting advice on first getting into mining Bitcoin, or the best Bitcoin mining rigs, or even just Bitcoin mining news, it’s a great place to get information.
The Safest Place To Buy Bitcoin In Egypt
Buying Bitcoin in Egypt is easy and as safe as anywhere else. Egyptians can either buy Bitcoin on regular exchanges such as Kraken or CEX. Opening an account is easy with both exchanges but you will be required to complete a KYC check.
Egyptians can also buy Bitcoin from peer-to-peer marketplaces such as LocalBitcoins or Paxful. These marketplaces are different to exchanges as they are platforms for buyers and sellers to meet and trade Bitcoin.
You will definitely find sellers willing to accept Egyptian pounds for Bitcoin on the marketplaces. Not only that, on Paxful especially, you will be able to buy Bitcoin for pretty much anything, as long as the seller is willing to accept.
You can also buy Bitcoin anonymously on Paxful, although you might pay a little extra.
Egyptians can also earn interest on their bitcoins with an interest bearing account with BlockFi.
BlockFi is a relatively new platform that pays its clients 6% APY just for storing Bitcoin with them. Or you can exchange your Bitcoin for GUSD, which is a stablecoin pegged to the US dollar, and BlockFi pays 8.6% APY for this.
Bitcoin Is A Way Out Of Government Corruption
Egyptians have suffered for too long, and although the lockdown is everywhere, the economic crisis in Egypt has faired worse than most other places.
Young Egyptians especially are fed up with it, and although the uprises of the recent past failed to deliver much change, the people now have Bitcoin as an opt out clause.
Buying Bitcoin and storing value in it is a way to circumvent failing currencies, and if the cost of electricity makes it worthwhile, mining Bitcoin is a great of turning an investment into Bitcoin.
Egyptians clearly see it as a way to get themselves out of the incessant failures of their government. Whether it’s mining Bitcoin, or just investing to buy Bitcoin and store it, Egyptians are clearly making their choice.
Author: Pablo Clarke
How many Bitcoins are left to mine?
There can only ever be 21 million bitcoins. At the time of writing, there are 18,502,856 bitcoins in circulation. There are 6.25 bitcoins minted roughly every 10 minutes, so that’s 900 every day. The amount of newly minted bitcoins is cut in half roughly every 4 years, in what is known as the halvening. The halvening will continue to take place until the last fraction of Bitcoin is minted in around the year 2140.
Can I start Bitcoin with no money?
Absolutely! Bitcoin is like other investments and currencies. If you have some money to invest, you can make more faster by buying Bitcoin. You can lose more faster, as well if you don’t know what you’re doing. But if you don’t have any money to invest you can earn free bitcoins from playing games, learning about cryptocurrencies, or offering your skills for Bitcoin.
Why should I buy Bitcoin?
People who understand Bitcoin buy Bitcoin because it is a peer-to-peer money that nobody can manipulate. It’s all set in the Bitcoin codebase which is secured by hundreds of thousands of computers all around the world. Bitcoins can be sent by anybody and no third party is need to verify the transactions, and nobody can stop Bitcoins being sent. There are many more reasons why people buy Bitcoin, and a deeper dive before doing so is recommended.
How much does it cost to mine 1 Bitcoin?
There is no exact science for the cost of mining a bitcoin, because the price will change every two weeks maximum. This is because there’s a Difficulty Adjustment that ensures it takes about 10 minutes to mine a block. And with other costs, such as your mining equipment, electricity, and other costs, it’s estimated that the average price to mine a bitcoin is around $12,500.