One of the new jargon in the Kenyan economy has been ‘bitcoin’ . Every financial analyst has spoken about it and every investor has questioned on how genuine this trade is. However, even as questions arise and more often than not having no answer, Bitcoin has seen a massive growth in Kenya this year.
Several studies from other countries have shown that Bitcoin is a real investment and has seen growth from less than a USD 1000 early this year January to around USD 17000. In Kenya, the coin is still a speculative asset and therefore one may not give conclusive information about it.
The reason many people consider Bitcoin as a speculative instrument than a currency is because of its volatility, high transaction fees, and the fact that very few merchants and vendors accept it. However based on the studies from Japan, France, US among other countries, one need to do investigative research before make a decision depending on how risk averse one can be.
Meanwhile as investor seek for a resolution, the French finance minister, Bruno Le Maire, has called for the issue to be discussed at the G20 summit of major economies in April.During an Interview with French Channel News LCI, He says ‘There is evidently a risk of speculation. We need to consider and examine this and see how… with all the other G20 members we can regulate bitcoin”.
With this regulation, there is definitely a guarantee that Bitcoin will be viable and not a burble as many suggest it to be. Analysts believe that once the regulation is done entry into the Bitcoin market will generate more interest in the Kenyan-currency and possibly pushing the price higher.
As one trades, it is important however to be careful of hackers and insiders so as not to loose your investments. This is however no different from any investment and therefore discretion should be exercised before indulging.
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