The first decentralized cryptocurrency, bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, as its proof-of-work scheme. However, Ugandan Government is biased about CryptoCurrencies and warns it’s citizens to stay away from the business.
What is CryptoCurrency
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
crypto is legal to buy, sell, send, receive, and own in most parts of the world, including all of the countries where Coinbase is available.
Types of cryptoCurrecies
We have several of them at the point and these include
- Bitcoin (BTC) One of the most commonly known currencies, Bitcoin is considered an original cryptocurrency. …
- Litecoin (LTC) …
- Ethereum (ETH) …
- Ripple (XRP) …
- Bitcoin Cash. …
- Ethereum Classic.
Relationship between Crypto currency and BlockChain
Bitcoin is a cryptocurrency and the blockchain is the technology that underpins it. A cryptocurrency refers to a digital coin that runs on a blockchain. … Theblockchain behind bitcoin is a public ledger of every transaction that has taken place. It cannot be tampered with or changed retrospectively
Can Bit Coin be changed to cash
There are several possible ways to convert bitcoin to cash and ultimately move it to a bank account: Sell bitcoin on a cryptocurrency exchange, such as Coinbase or Kraken. This is the easiest method if you want to sell bitcoin and withdraw the resulting cash directly to a bank account. Use a bitcoin
In developed countries, there are machines where one can mine these coins and get hard cash, which is not the case for Uganda. This was the first reason given as towhy Ugandan Government is biased about CryptoCurrencies
At the moment, there are social media posts imploring Ugandans to invest in cryptocurrencies as a means of making their savings grow. But Kasaija told reporters at the Uganda Media Centre on Monday morning that the government will not be held responsible in case anyone loses money to organisations selling cryptocurrencies.
He says that the use of cryptocurrencies is a fraud and no Ugandan should spend their money.
Kasaija said the currencies are exposed to risks, including fraud, and the fact that they are not backed by any assets makes it a high-risk venture. When one loses, they lose everything and no one is compensated.
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Richard Mayebo, the executive director of risk and strategy management at the Bank of Uganda said that the government is telling Ugandans to go into this well-aware of the risks involved. As a Central Bank, he said, they don’t believe cryptocurrencies meet all the characteristics of genuine currency.
Bank of Uganda has previously warned the public against this sort of money with Dr Louis Kasekende, the Deputy Governor, saying that it was risky to use online cryptocurrency because there were no regulations on their use in Uganda.