Bitcoins; What is the view of this community?


#1

Firstly, if you’re still confused about how bitcoins work, this is the simplest explanation I could find online; http://www.coindesk.com/information/what-is-bitcoin/

Also, the latest news is that CBN may approve of bitcoins; not that it changes anything much since they do not control it.

Now I want to find out your opinion on bitcoins. The promises, the stories, being the future of money…

Also, from what I’ve observed it is currently the best way to send money to Nigeria from other countries.

What is your say?

Credit: @naijabitcoinguy on twitter https://twitter.com/naijabitcoinguy


#2
  1. Cryptocurrency is not really any different from paper or any other currency, just that it is relatively new now which explains its continuous appreciation in value. It will stabilize with time. Trading bitcoin, onecoin or other cryptocurrency will eventually be like trading forex, with prices determined by the forces of demand and supply.
  2. And it is not entirely ‘uncontrolled’, Central/Reserve Banks are to paper currencies as Mining Companies are to cryptocurrency. With time, we’ll get to realize that majority of the shares in Bitcoin mining companies are most likely owned by banks, directly or indirectly. They are only re-innovating.
  3. Decentralization is the key word when it comes to cryptocurrency innovation. But we’ve got to pay attention to the lessons we’ve learnt this year with regards to the breaks from globalization such as the euro and brexit.

#3

Thanks for your input.

I’m curious, how much control does mining companies have over bitcoins. From what I read, no group can control these currencies as it is today. What does this control entail?


#4

Bitcoin is like virtual Gold and Bitcoin mining companies are like Gold mining companies. Mining companies can only create more bitcoins – they cant control it.


#5

Creating bitcoin is the control itself, you can’t create gold. Don’t you think? Though for now, bitcoin is mined when a complex algorithmically determined event (e.g. a transaction between users) is detected, we all know human nature! Also note that mining companies are corporations, they are registered and pay taxes. Someday, the countries where they are registered or where their mines are might decide to attempt regulating them as financial institutions. Just imagine what our very own CBN is trying to do.


#6

I think it would be difficult to regulate considering that its not only the mining companies that are mining. There are regular people whose rigs are up to the task.

The challenge with mining is the toll it takes on your device. If you really want to mine, you need to buy a special rig which costs nothing less than $800.

Truth be told I like the way Bitcoin is setup. Transfers are instantaneous without having to worry about if network is available in the bank or not.


#7

This is exactly what I was trying to say: Big Banks Are Stocking Up on Blockchain Patents


#8

I can’t forcast the future of Bitcoin, but one thing I know is that throughout this year the value of Bitcoin has been on the increase, and since it’s been accepted as a means of exchange in many part if you are looking at it from an Economic view, I’ll advice you could start buying small bit and watch them appreciate with time, while you sell and make your profit. This is what you can make of it at the moment.


#9

Remittance
You get more value with lesser fees and best exchange rate with Bitcoin.

Investment
Dec 2015 1 bitcoin traded at around 110,000 NGN
as at now, 1 bitcoin will cost you 441,867.3 NGN


#10

Stupid man question…but how does one buy bitcoin.


#11

Before you can buy bitcoins, you need to create a bitcoin wallet which allows you to store, send and receive bitcoins. Blockchain is highly recommended for beginners. They have mobile apps

After creating your wallet, you can generate your own bitcoin address to receive. Go to receive and copy the address

You can buy bitcoins from any bitcoin exchanges in Nigeria like NairaEx.com

How to Buy Bitcoins in Nigeria

  1. Login to your NairaEx account, click on create new order

  2. Fill out the Buy form. ( select bitcoin, enter bitcoin or Naira amount, bitcoin address and submit. )

  3. Pay the described amount in Naira to the NairaEx bank account shown on the confirmation page and marked as complete after deposit… Online, mobile or ATM transfer and deposit at any local branch of the bank are accepted

  4. Email the proof of payment (teller, payslip, statement or transfer screenshot etc) to hello@nairaex.com and your order will be funded within 2-8 hours after your deposit has been verified.

I’m the owner of NairaEx


#12

Why not save your customers the stress of having to go to the bank. You can integrate a payment processor like VoguePay or any-other payment gateway of your choice to make the process seamless and faster.


#13

You can buy from https://www.localbitcoins.com . I sell bitcoin too


#14

All investments make sense when the price is low. I bought my bitcoins in September 2015, where it had hit a new low:

It had been falling for a long time prior to that, so people assumed it would continue falling. That’s the time you make a purchase. Don’t buy when it’s hot and everyone wants to buy.

I tweeted this then: https://twitter.com/markessien/status/645641369160126464

But the real reason I though it would do well was because of this: https://www.bloomberg.com/news/articles/2015-09-17/bitcoin-is-officially-a-commodity-according-to-u-s-regulator

If there is a market and something significant changes, it means there will be a change in pricing, either up or down. Bitcoin being a commodity cannot be negative.

Coming in to buy bitcoin now may be a good idea, but the problem is that there are no underlying fundamentals (as far as I know), driving it towards going up. It will keep going up, because people will buy because it’s going up, but that will not last forever.

I am personally bullish on bitcoin, but I’m not doubling down. It’s a nice little investment, but there is a lot of speculation around the price, and speculation is irrational, and not the basis for any serious investment.

I would not mind holding like 1% of my assets in bitcoin, but anyone doing so should be supremely aware that you have to be doing this for the long term. Treat bitcoin like you treat your stocks, not like a money doubling method.

If you want to invest, wait for companies you believe in strongly to go public and buy 4 weeks after IPO.

If you make 50% profits in a year, you are wildly successful. Bitcoin falls in that same group, not in the 1000% return group.


#15

I don’t think this leads to a ‘control’. I don’t see how. You may just be overstating things.

Blockchain, the technology is what these guys are vying to have a share in. Mining companies simply mine bitcoins (verify transactions). Bitcoin the currency can not be controlled by a single individual/group from what is currently on the ground now. That is how I see it.

And as you said from your first post, bitcoin I think is not just another currency. It is a huge step and I can’t wait to see how it unfolds.


#16

I sure deserve a commission from this. :wink:


#17

Very well said. I’ve been seeing a lot of people lately talk about bitcoin investments in a get rich quick sense. I don’t get it. I think it could be people are just looking for alternatives to MMM. It’s like Gold. You can buy it stock it, the value might go up or down tomorrow, the government could decide to make it an illegal commodity, anything can happen, but it could also turn out to be a nice little +ve investment.