Have you heard the statement, the future of currency is the bitcoin? Wondering what this bitcoin is and how you can earn them? Simply put, the Bitcoin is a type of virtual currency for facilitating online transactions. The smallest unit of a bitcoin is called a Satoshi. The system is not governed by a central bank system hence it is very unstable and also the platform is still a very small market. In this article we will give you details on how to earn bitcoins in Kenya.
During the global financial crisis of 2008 the bitcoin concept emerged after a paper was published by a person or group of people called Satoshi Nakamoto. The aim was to create a platform to allow electronic transactions to take place by the use of a virtual currency. Before bitcoin, we had systems such as Hashcash which was introduced in 1997, and Bit-gold. Here, we will look at how you can earn bitcoin in Kenya, how it is used, as well as how it works.
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The following are 6 ways to earn bitcoins fast in Kenya:
1. Mining to obtain bitcoins
You can earn bitcoins from mining. For every block mined you will be able to obtain 12.5 bitcoins at the moment, although this amount is expected to halven in two years time. Initially when bitcoin started, one would get free bitcoins worth 50BTC as a reward for mining a block. But mining bitcoins is challenging nowadays due to the following reasons:
- High computing power required. This necessitates investment on powerful computers which may be expensive to purchase and maintain.
- It is not a profitable venture because of the high operating costs.
2. Doing jobs which pay with bitcoins
You can engage in online jobs which pay for services offered through bitcoins. You can visit websites such as Coinality and Reddit to view jobs being offered.
3. Engaging in gambling and casino games
Online gambling can be a source of bitcoins but it is a high risk venture. It is considered a safe and cheap form of gambling because third parties who handle the transactions are eliminated. The system can be hacked, therefore there is need to invest more in cyber security. The following are the most popular gambling websites which use bitcoin.
As you know, gambling is a matter of luck, so you may win or not.
4. Engaging in bitcoin faucets
This is one way to earn bitcoins free. It works by allowing you to spend time on a website for a given period of time and then you will be rewarded bitcoins. The bitcoins earned is very little for example 0.0001 bitcoins for every 5 minutes you spend online. Thus, you earn bitcoins online without investment using this method.
5. Increasing your trading skills
You can engage in cryptocurrency trading platforms such as CEX.IO to earn bitcoins without buying them directly. It is advisable to start trading with small amounts of bitcoins then afterwards you can begin to trade larger amounts.
6. Selling goods and services in exchange for bitcoins
You can sell goods and services by accepting bitcoins as a form of payment. You can also encourage your customers to use bitcoins when purchasing goods and services.
Avenues for earning bitcoins are very limited and risky. Having knowledge of how cryptocurrency works will be an added advantage because decisions are mostly based on speculation. Bitcoin use is prone to hacking and scams and processing transactions can take up to ten minutes.
- Familiarize yourself with how the bitcoin system works to avoid making errors during transactions and also to earn bitcoins fast.
- Download and run the bitcoin wallet software which will contain all your bitcoin addresses. Example of popular bitcoin wallets are Mycelium and GreenAddress.
- Next you will have to purchase the bitcoins or accept the cryptocurrency when you purchase goods or services.
- Use the bitcoin to buy goods and services where it is accepted.
How bitcoin works
For first time users of bitcoin, the bitcoin wallet you downloaded and installed in your smartphone or personal computer will create your bitcoin address which you will share with the people you will be doing business transactions with. The block chain is a record of all the transactions which is accessible to the users. It works with the bitcoin wallet to facilitate transactions, for example purchase of goods or services.
Bitcoin mining is the process in which all the transactions which took place are verified and the system adds them to the blockchain. There are regulations regarding how the transactions are to be added to the blockchain. Bitcoin mining requires the use of bitcoin mining software such as Bitcon Miner, BTCMiner and CGMiner. Bitcoin in Kenya is not widely accepted as a form of payment for goods and services since most businesses in Kenya use currency issued by the Central Bank of Kenya. Bitcoin price in Kenya is determined by the following:
- Existing laws concerning the buying and selling of bitcoins. When the laws permit the buying and selling of bitcoins it will instill investor confidence hence increasing the value and stability of the bitcoin.
- The demand and supply of the bitcoin. When the demand for bitcoin is high because of the rate at which new coins are being generated is declining then the value of the bitcoin will rise.
- Competition from other forms of cryptocurrency such as Litecoin will affect the value of the cryptocurrency. The most popular cryptocurrency will tend to have a higher value.
- Bitcoin users can buy and sell the bitcoins in cryptocurrency platforms such as GDAX. The listing of bitcoin in this platforms makes the bitcoins safe for trading by the investors, and this will increase the value of the bitcoin.
- The management of bitcoin is decentralized and decisions are reached through agreements among the developers and bitcoin miners. Decisions on increasing the bitcoin processing speeds may lead to generation of new coins causing a decline in value of bitcoins.
The buying price of bitcoin in Kenya ranges between Ksh. 648,000 and Ksh. 650, 000. You can sell one bitcoin in Kenya for between Ksh. 614, 000 and Ksh. 620, 000.
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Although bitcoin use cannot be stopped, there is need for regulation by the relevant authorities to ensure its stability as a currency to prevent loses to the investors. With this guide on how to earn bitcoin in Kenya, you can be part of this lucrative future of currency.