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Kenya— Young Man Makes $800 Monthly From Mining Ethereum- Bitcoin Alternative Cryptocurrency

   Eugene Mutai is a cryptocurrency miner who is well aware of the risks of mining virtual money. "Sometimes I ask myself: will the bubble pop?"
Eugene Mutai

But this has not stopped him from mining cryptocurrencies in Kenya.

Mutai began studing cryptocurrencies two years ago. "I was curious about what was making these alternative coins drive."
Before he started mining, he worked on farms in the rural areas of Kenya. Later he moved to Nairobi, the capital of Kenya, where he started mining.

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"Bitcoin was hard to mine by that point in time," he says. There were already many Bitcoin miners. Instead, Mutai started mining Ethereum, a similar but less popular cryptocurrency.

Mutai makes about $800 every month. Once the mining machine is up and running, aside from the regular power-cuts, he can relax and let the computer do the work.

However, because of  the huge amounts of electricity needed to run the sort of powerful computers capable of mining, miners usually encounter huge electricity bills. For instance Mutai says his electricity bills cost about 20% for his earnings, but its nothing because of the increase in cryptocurrency prices.

It's also a world populated by online criminals and fraudsters. But Mutai takes this chance.
"Cryptocurrencies as a concept and the way they work is very revolutionary."

Mutai believes that cryptocurrencies could one day replace standard currencies.
"It will be a long battle with governments and financial institutions," Mutai says

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In 2016, Mutai was named Kenya's top developer by Git Awards.
 Mutai is among  the growing group of African developers and entrepreneurs engaged in different forms cryptocurrencies activities.


Let's talk about cryptocurrencies. We will be using the Bitcoin as an example of a cryptocurrency.

What is a cryptocurrency?

A cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are a type of digital currencies, alternative currencies and virtual currencies.

What does it mean to mine cryptocurrencies?

Production of cryptocurrencies using computer technology.
Mutai interviewed earlier says "The way I understand what mining cryptocurrencies is, is that it's basically supporting the network and helping the verification and adding of transactions to the whole blockchain database. Put simply, instead of companies like VISA and Mastercard securing transactions, miners do," Mutai says.

How do miners make money from this?

Mutai helps us out here."There's something known as a Hashrate, which is basically how fast can you verify transactions, and eventually help the transactions to be added to the block.
"The more powerful your computer, the more transactions you can verify, the more money you can make. Then for every transaction verification, you get something called a share, which is translated into the cryptocurrency that you're mining," Mutai concludes.

What is a Bitcoin?

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator.

Are you thinking of investing in cryptocurrencies?
It can be a lucrative business. Here are some types of cryptocurrencies and their equivalent in United States dollar.

1. Bitcoin
Symbol: BTC
  1 Bitcoin equals $8597.00

2. BitcoinCash
Symbol: BCH
  1 BitcoinCash equals $1258.28

3. Ethereum
Symbol: ETH
   1 Ethereum equals $848.73

4. Dash
Symbol: Dash
  1 Dash equals $617.00

5. Litecoin
Symbol: LTC
   1 Litecoin equals $157.54

Cryptocurrencies are soaring, but some people are skeptical about this.
For example Jamie Dimon, Chief executive officer of bank JP Morgan, says Bitcoin is a "fraud" and that "you can't have a business where people can invent a currency out of thin air.
  Also, people are concerned about the security of cryptocurrencies. For example, two years ago, $65m worth of Bitcoin was stolen from Bitfinex, a Hong Kong-based exchange, resulting in a 20% decrease in its value.

There are also no central banks or regulatory authorities that oversee cryptocurrencies.

We do not know the fate of cryptocurrencies within the coming years. But for now, Bitcoin is worth more than gold.