The key component to any investment lies in its potential to gain meaningful profit. Financial institutions hold the monopoly in determining areas and processes of investment, thereof; explanations which are mostly difficult to understand by an individual who lacks financial knowledge but has the desire to make more money.
Bitcoin and a host of other crypto/digital currencies are in a league of their own. Their ability to constantly evolve without centralised control makes them a unique digital currency solution. Economists believe the Marxist Theory of Money which states that, “Money is not rooted in redeemability, nor collateralisation, nor income, nor usefulness, but rather in labour”. The mystery around Bitcoin’s value is best represented in terms of the labour time embedded in the computation power used to mine it.
Although, Bitcoin holds monetary value but cannot be placed in the same measure as other economic commodities, who find their value through amount of labour required to produce them.
Financial institutions are faced with a dilemma when it comes to the adoptability of this financial technology which at the present moment runs independent of their policies and offers people the freedom to move their funds globally, uninterrupted and at a much lesser cost than normally charged by these institutions.
An interesting development occurred in Mpumalanga (South Africa), in May 2018, when local news broke with a headline, “Kidnappers demand Bitcoin ransom, valued at R1.5m, for abducted teen”, which left many people confused if not shocked. Many might have heard about Bitcoin but quickly distanced themselves from trying to understand what it is and how it works because for years, many people have lost money through countless network marketing and other such get-rich fast schemes that turned out to be fraud.
In today’s evaluation a single Bitcoin (BTC) is trading at $7,297 (R111 110,75), a value which medium to low income earners in South Africa or in Africa cannot afford to part with just to buy a single Bitcoin. Some Crypo-Think tanks have devised a solution to include these low earners into investing and earning profit through a well prescribed network of Bitcoin mining grouping system.
Blockchain technology offers investors the much needed freedom to track their digital financial footprint, transfers, payments and exchanges in real time across a peer to peer network. This completely cuts out any third party involvement and helps curb any form of financial fraud on the users.
Africa is known to be notorious in its late adoption of digital innovative advancement efforts; hence even up to today only 17% of the entire population have access to the internet. In order to be successful, digital currencies need to be spread across all communities and offer the poor an equal opportunity to create and participate in wealth creation.
Global business tycoon Richard Branson is an innovative giant who believes that Bitcoin is the future and boldly declares, “I have invested in Bitcoin because I believe in its potential, and the capacity to transform global payments is very exciting.” He has also cautioned people against an ever-growing online problem of misleading adverts, get-rich fast schemes, and fake binary trading schemes and false endorsements.