Bitcoin, which is usually written as (BTC) is a virtual cryptocurrency that helps to facilitate instant payments. 1 bitcoin equals 1,830,261.29 Kenyan Shilling. Bitcoin is not a currency of any country while the Kenyan Shilling is the currency of Kenya. Every transaction about a bitcoin is recorded in a public list known as the blockchain. This article focuses on all you need to know when converting bitcoins to Kenyan currency.
A bitcoin is a file that is stored in a digital app on a smartphone or any kind of computer that is controlled by a decentralized network of users. A person can send a bitcoin to your account in your app, and you can also send them bitcoins to their digital wallet. From research conducted in 2018, it was concluded that over 4 million people use a cryptocurrency wallet most using bitcoins.
HOW TO CONVERT BITCOINS TO CASH IN KENYA.
There are blockers of bitcoins and digital assets in Kenya, online peer-to-peer marketplace, and websites where you can exchange Kenyan shillings for bitcoins. Buying an exchange is one of the primary ways of obtaining bitcoins other ways include; accepting them for goods and services sold or rewarded for mining your own.
- The peer-to-peer platform keeps your bitcoin safe until the buyer has completed their payment. The platform also allows you to choose the payment method you want to be paid for your bitcoin. You can either be paid through cash deposit or bank transfer. Always ask for proof of ID from the buyer at all times you carry out the transactions.
- The cryptocurrency exchange is the easiest and more secure method of converting bitcoins to cash. After signing up in any broker exchange, you deposit your bitcoin then cash out your BTC to fiat via the bank.
- Through bitcoin ATMs, you can buy and sell bitcoins with cash. This method is suitable for people transacting small amounts. However, the bitcoin ATM has a high transaction fee.
- Bitcoin debit cards allow you to sell bitcoins and receive a pre-paid debit card which works like a regular debit card. The card will not only make purchases easier but also withdraw cash at ATMs where either VISA or MasterCard is accepted.
THINGS TO REMEMBER BEFORE CONVERTING A BITCOIN TO KENYAN SHILLINGS.
There are various unexpected dangers that you should know when you convert bitcoins to cash. The following are associated with the conversion;
- The taxes imposed. Most tax authorities impose taxes on the profits you make when selling bitcoins to cash. There is no evading tax.
- The exchange fees are charged. The exchange rates are fluctuating occasionally, this means that the fees also change periodically.
- Cost of the method used.
- The urgency and ease of the method. How long you can be patient to receive the payment also matters.
USES OF BITCOINS.
Bitcoins are convenient and faster for there are no middlemen when making the transactions. Bitcoins are now getting stronger and stronger as the years go by. The users of bitcoins have user anonymity even though all transactions are recorded. Having bitcoins is like having cash on the internet with an option of withdrawing. The technology used is modern and efficient making it useful in the following ways;
You can achieve this by purchasing a bitcoin via online trading apps. In most cases, you are required to create your account first before depositing the money you would use to purchase the bitcoins.
- Purchase of goods.
Bitcoins can be used in purchasing goods from big expansive merchants that accept bitcoin payment. The purchase has a low transaction cost for there is less government intervention and intermediary institutions.
DISADVANTAGES OF USING BITCOINS.
Various unfavorable circumstances reduce the chances of bitcoins to become a successful cryptocurrency. Examples of the impediments of using bitcoins are;
- Exposure to fraud.
Criminals are encouraged to exploit people using bitcoins for their gain. This occurs when the people are tricked into giving away their part of the bitcoin mostly when in the exchange market to benefit financially from them.
- The black market affects its usefulness.
Every business has its shadow economy, the trade of bitcoins also has a series of transactions which are illegal to some extent. When these activities are carried out with their non-compliant nature to the regulations affect its utility.
- Susceptible to high price volatility.
The higher the volatility, the riskier the security because of the variation of price over time. Bitcoins can be easily affected by high price volatility for investors may be uncertain if their goals will be accomplished.
- No refunds.
Once you have ventured into Bitcoin trade with other forms of currencies there is no turning back. If you are not satisfied with the trade, you cannot be refunded your deposit.
- Can be replaced by other cryptocurrencies.
Bitcoins face stiff competition from more than 6,000 other cryptocurrencies. The availability of many varieties to choose from has made the trade of bitcoin hold on a string for it can be replaced at any time.
- Negative effects of Bitcoin mining.
Bitcoin mining has environmental effects on a person’s health of course. Bitcoin mining produces about 1o million tons of global carbon emissions in one year. Most of the carbon emissions are carbon dioxide which brings difficulty in breathing.
- Skepticism from Regulators.
Although the use of bitcoins is not considered illegal, some regulators from specific countries do not buy the notion that virtual currencies are reliable and shy away from their citizens from using them.
Bitcoin is a transparent and secure currency used to purchase products and pay for online services. The conversion of bitcoins to Kenyan shillings has become easier and easier for even right now you can use Mpesa. In Kenya, the use of bitcoins is effective for people who venture into online business. This is because many shops and service render do not allow that term of payment.