What is bitcoin? Bitcoins in Malawi

What is bitcoin? Bitcoin is a decentralized digital currency. As a decentralized payment system it means there is no institution regulates it. Bitcoin is open source such that no government or bank owns it and everyone can take part in improving it.  Bitcoin was invented in 2008 by an unknown person.  Since its invention the number of Bitcoin users keeps increasing every year. It is a virtual crept currency

How do I buy bit coins?

People buy Bitcoins on bit coin exchange websites. The first step in buying Bitcoin is to create a web-based account, the Bitcoin wallet. Then a payment is made through credit card to the exchange websites who then pays the equivalent Bitcoin amounts. Another way to own Bitcoin is through the process of Bitcoin mining.

What is Bitcoin mining?

It is the process whereby people solve mathematical problems to generate Bitcoin. To start mining Bitcoin software is installed on the user’s computer. Mining depends on the computer processing performance.

When did people start using bitcoins?

The first Bitcoin transaction took place in 2010. One person paid 10 000 bitcoins for an exchange of two pizzas.

How is Bitcoin value determined?

Bitcoin is a free-floating currency. Market forces of supply and demand determine the value of bitcoins. Bitcoin coin value rises when demand is high.  Its value also depends on the strength of the currency of a particular currency.

Where to shop with Bitcoin?

Bitcoin is used to make online purchases like any other digital currencies. Bitcoins are used worldwide. Several shops in the western countries and china accept payments using Bitcoin. In Africa use of Bitcoin is on the rise in Zimbabwe, Nigeria and Kenya.

Storage of Bitcoin

Bitcoin are stored in the Bitcoin wallet, hard drive, or they are printed on hard paper.

Why is Bitcoin becoming popular?

The use of Bitcoin is becoming popular worldwide due to several factors. Some of the reasons why more people are interested in the use of Bitcoin are listed below.

• It is easy and fast to send money, it takes few minutes.
• Transactions area peer-to-peer hence there are no regulatory cross border barriers
• Low transaction flat fee, hence preferred method of transferring large sums of money
• It is potential alternative for dysfunctional currencies/economies

Bitcoin in Malawi; How to buy bitcoins in Malawi?

As of on the day of writing this blog post I have never heard of the use of Bitcoin in Malawi. According to this website  over 10 000 bitcoins are already sold in Malawi.

The usage of bitcoins in other African countries like Nigeria,Kenya, Zimbabwe, and Uganda is on the rise.Hence, one can only speculate that the technology will be adopted in the country on the appropriate time.  There is hope that in due course Malawi will embrace the trending Bitcoin technology.

By using an online calculate I learnt that MK1000 is equal to 0.00012409 BTC (where BTC  stands for Bitcoin)