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Lebanese Crypto Miners Are Fighting For Survival

To mine cryptocurrencies, miners need two essential things: suitable mining hardware and the electricity necessary to power it.

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lebanese crypto miners are fighting for survival
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Cryptocurrency mining used to give many people in Lebanon hope that a life void of financial anxiety was within their reach. Now, this hope is quickly turning into disappointment amid the electricity shortage crisis in the country. To mine valuable cryptocurrencies such as Bitcoin, crypto miners need two essential things: suitable mining hardware and a reliable source of electricity necessary to power it.

The first requirement alone is difficult to meet these days because GPUs (Graphics Processing Units), which most smaller miners and many large-scale miners rely on, are either unavailable or ridiculously expensive — and not just in Lebanon.

The second requirement, however, is something that has been making many crypto miners in Lebanon rethink their strategy. “Before the electricity crisis, each GPU used to mine $10-$20 worth of Bitcoin every four hours,” said Alaa Ayash, the co-owner of a gaming-turned-mining lounge in Mar Elias, Beirut. “Now they mine about $1-$5, almost a quarter of what they used to.” he added.

In an effort to keep their mining rigs running 24×7, some miners have started producing their own electricity using diesel generators, but obtaining enough fuel without paying an arm and a leg for it is becoming difficult every day, that’s if it can be obtained at all.

“One gallon (20 liters) of diesel used to cost around 30,000 Lebanese pounds. Now it costs somewhere between 100,000 pounds and 150,000 pounds in the black market, if not more,” explained Ali Mortada, a Syrian janitor responsible for several large buildings.

Also Read: Bitcoin In Lebanon: Everything You Need To Know

Of course, diesel generators are the exact opposite of environmentally friendly. In fact, diesel engine exhaust is classified as carcinogenic to humans because it’s linked to an increased risk of lung cancer. Several countries in Europe and South America are currently looking into cleaner and more sustainable energy solutions to power their equipment in efforts to continue mining in an eco-friendly manner.

The only thing that could realistically help Lebanese crypto miners in the short term is a substantial increase of Bitcoin’s price, and alternative cryptocurrencies along with it, but the current bear market doesn’t make this seem like a realistic possibility.

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NEOPAY Wants To Follow Merchants Across Channels And Borders

A controlling 65% stake in noon payments would give NEOPAY access to marketplace sellers, online merchants and the payment flows they generate.

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neopay wants to follow merchants across channels and borders

It’s been a long time since checkouts were single defined places. A merchant might take payments at a physical register, on its own website and through an online marketplace, sometimes in more than one country. NEOPAY wants to follow those transactions wherever they happen.

The UAE payments company has entered into an agreement to acquire a 65% controlling stake in noon payments. NEOPAY already runs the acquiring infrastructure that lets merchants accept card payments, along with omnichannel acceptance and a merchant services platform. This new deal would add noon payments’ embedded payments platform, e-commerce gateway and merchant network across the UAE, Saudi Arabia and Egypt. That would considerably expand both NEOPAY’s digital commerce capabilities and its regional reach.

For merchants, the attraction is a single provider for online and in-store payments, plus faster settlements, data and analytics, and value-added financial services.

“Payments should be simple, reliable, and built for the markets they serve,” said Faraz Khalid, CEO of noon. His counterpart at NEOPAY, Vibhor Mundhada, added: “We have built a strong payments business in the UAE, and our ambition is now to take that capability across the region”. The acquisition, Mundhada added, would “expand our footprint into Saudi Arabia and Egypt” while reinforcing NEOPAY’s position at home.

Also Read: In Kuwait, Your Surgeon Might Be Operating From Another Country

NEOPAY is also keen to point out potential payment volume increases. The company says noon payments’ integrations with marketplace sellers and online merchants create high transaction density in some of the region’s fastest-growing digital commerce segments. It also believes control of the business would give it access to those merchant relationships and payment flows, and speed up the rollout of alternative payment methods and installment options.

The combined roadmap targets faster merchant onboarding, better payment performance, tighter fraud controls and embedded financial services. The deal could also strengthen cross-border payments and settlement along key regional commerce corridors.

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