If you’re still struggling to understand how the whole bitcoin thing works here in Uganda, I would recommend you grab a seat and read this.
I have come to learn that there is a lot you can do with bitcoin cryptocurrency in our everyday life that a lot of people don’t really understand.
So this post seeks to widen your understanding of some key things about bitcoin, does bitcoin work in Uganda, or perhaps is it nothing but rather a scam.
In this post, you’ll get to understand some applicability of bitcoin in your daily life, how to join bitcoin in Uganda among other things.
Contents
What is bitcoin?
To get started, it’s appropriate to understand what is bitcoin and how can it be used in an economy like Uganda.
Bitcoin is simply a virtual currency call it money that is neither tangible nor seen, unlike our Ugandan Shillings. The currency is decentralized and differs from fiat digital currencies in several important ways.
Bitcoin just like any other cryptocurrencies rely on blockchain – the public distributed ledgers that track the coins’ ownership.
These bitcoin ledgers are powered by the so-called “miners” since they are the ones who throw computational power into the system to discover and verify cryptocurrency units, occasionally receiving – or “mining” – new bitcoins in return.
So if Bitcoin is simply virtual money, this means you can do anything you would do with your shillings cash such as buy or sell commodities and even transfer money.
However, it’s important to understand that bitcoin just like any other cryptocurrency is new and limited and thus can hardly be used by Ugandans in marketplaces and shops.
There are few places in Uganda that you’ll find and are willing to accept payments in form of bitcoin currency. This however does not mean you won’t need bitcoin at one point in your life.
Benefits of Bitcoin or Blockchain
If you’re an online entrepreneur or some guru always interested in new technologies, you’ll find some of these bitcoin benefits familiar along with your everyday life.
#1. Bitcoin Mining
If you’re really passionate about the whole bitcoin thing and cryptocurrency business in Uganda then you can simply consider making a living out of mining bitcoin.
Mining bitcoin is a term that refers to the process of throwing computational power into the systems and initiating new bitcoins.
A number of Ugandans are making a decent living and money by simply investing and trading this currency in Uganda.
This certainly comes at a moment when the government welcomed the whole idea to trade and exchange blockchain currencies here in Uganda.
However, it’s important to understand there are a lot of risks and losses involved if you want to go along these lines of bitcoin mining.
#2. Receive Money from abroad
There is indeed quite a lot you can do with bitcoin. Bitcoin is one of the cheapest means to send and receive money from across borders in Africa.
Unlike the popular cross-border transaction platforms such as MasterCard Payoneer and Visa, the costs of using bitcoin wallets and exchange websites are relatively low.
Take a look at this scenario, In the past, it would cost me $5 to receive $60 from abroad via Payoneer MasterCard and approximately $10 for a similar amount via Visa. However, it costs me only $0.11 to withdraw such an amount via bitcoin exchanges websites today with this blockchain technology.
To be sure about which bitcoin exchange websites you can use here in Uganda, Read this Best websites to buy and sell bitcoin in Uganda.
Risks
Before you plan to bump into bitcoin trading and the whole thing of exchanging, investing, it would be wise to understand some of its risks and benefits to ensure you don’t lose it all.
According to a report by Uganda’s central bank – issues a warning that investing in bitcoin and other digital currencies “is taking a risk in the financial space where there is neither investor protection nor regulatory purview.”
However, despite all those odds, it’s also a business opportunity for the open-minded entrepreneurs who are willing to take risks in investing in such hugely speculative assets.
Conclusion
Back to the same question “does bitcoin work in Uganda? is it even real?” It may be difficult to find marketplaces or vendors selling and buying commodities in bitcoin but that doesn’t necessarily mean bitcoin is not being used by Ugandans.
I have used bitcoin to do a lot of online transactions since it’s cheaper than the popular Visa and Payoneer MasterCard. I think the same may be obvious for other Ugandans who have received cash from abroad using bitcoin wallets and exchange websites.
If you’re an open-minded entrepreneur and are willing to take chances in this speculative business, you should consider investing and becoming a bitcoin miner. There are a lot of resources and experts online that can help you.
Otherwise, you can deposit, send and receive money in form of bitcoin, I would guarantee you that this is totally cost-effective.