Category: Cryptocurrencies

In part one of the “Understanding Bitcoins” series, we looked at what bitcoins are, why they have become popular, and ways their value is determined.

If you have been on the internet anytime this year, one word you are sure to come across is Bitcoins. A lot of Ghanaians have been talking about how bitcoins are making people rich and how it’s value is increasing.

Here on Mfidie.com, questions on bitcoins are one of the most asked. In this article, we decide to break bitcoin down to bits we can all process. If you haven’t read the part one of this article, you should do so.

Understand Bitcoins, Cryptocurrencies the Simple Ghanaian Way: Part 1

If you are confused about something, just ask in the comments section below.

How to get started with Bitcoins in Ghana

Creating your bitcoin wallet online

There are quite a number of ways to obtain bitcoins. But the first real step in obtaining bitcoin is to have a ‘Bitcoin wallet”.

A Bitcoin wallet is first required to get started with using bitcoins. Like the name suggests, a Bitcoin wallet is where you “keep” all your bitcoins. Simply put, your bitcoin bank account. The wallet can be created easily through different online applications. Your Bitcoin wallet is essentially just like, well, any other wallet.

Think of a Bitcoin wallet like an “app” that you would install on your phone. You can download your wallet on your computer through a software wallet, on your mobile, and also on the web. I personally prefer the online wallet coinpayments.com. You can visit their website and follow the instructions to get yourself started. They also have mobile apps for Android and iOS.

Once you’ve got yourself a Bitcoin wallet, you’re good to go. It takes just a few minutes to get a wallet on coinpayments; once you have one, you can start accumulating bitcoins. Oh, coinpayments.com supports many other cryptocurrencies, in case you want to “go in deep”.

How to get or obtain bitcoins in Ghana

Obtaining bitcoins is a relatively easy process. The three common ways are:

• If you are selling a good, you can accept bitcoins as a form of payment (very rare here in Ghana).
• You can purchase and sell bitcoins through Bitcoin exchanges (This is the most common way around the world. Exchanges are typically found online but a lot of people don’t use them in Ghana.)
• You can buy directly from individuals who have bitcoins in their wallets at a rate you both agree on

Bitcoin Exchanges in Ghana

As written above, obtaining bitcoins through an exchange is the most common and workable way to get started. There are hundreds of exchanges (mostly online) through which you can obtain bitcoins. You simply register, enter your bank account information, and convert the local currency into bitcoins. In fact, there is an easy way for you to find an online exchange based on where you live through this website.

However, it is your responsibility to deal with a credible exchange as many have been duped under the premise of buying bitcoins. Don’t be a victim.

Buying Bitcoins from Individuals in Ghana

Buying bitcoins from an individual is usually faster than using an exchange.

Usually, sellers mark up their price so they can make a small profit for their time and service — you’ll usually end up paying a slightly higher price per bitcoin than you would on an exchange.

I always recommend that whenever you want to buy bitcoins from an individual here in Ghana, it is usually best to meet and do the transaction in person, see the Bitcoin in your wallet and pay accordingly. Nowadays, too much trust and you are a mugu. I’m not trying to spoil anyone’s business, but that’s the truth.

I have personally directed friends to people they can buy from. Traceable people, and not mere WhatsApp numbers and Facebook profiles.

In Part 3 of this series, we will look at how bitcoin transactions are done and how to know what you are buying is “safe bitcoin”.

If you have been on the internet anytime this year, one word you are sure to come across is Bitcoins. A lot of Ghanaians have been talking about how bitcoins are making people rich and how it’s value is increasing.

Here on Mfidie.com, questions on bitcoins are one of the most asked. In this article, we decide to break bitcoin down to bits we can all process. So stay put, grab your Sobolo and read. If you are confused about something, just ask in the comments section below.

What is Bitcoins

Bitcoins are a form of virtual currency – meaning, if you have bitcoins, you do not physically purchase goods by handing notes or tokens to the seller. Bitcoins are used for electronic purchases and transfers. You can use bitcoins to pay friends, merchants, etc if they accept it as a medium of payment.

Every single purchase is immediately logged digitally (on computers) on a transaction log that tracks the time of purchase and who owns how many bitcoins. Think of this transaction log as an audit trail: it contains every single piece of information of every bitcoin transaction. This digital transaction log is called ‘blockchain’.

The blockchain records every single transaction, both present and past, as well as the ownership of every single bitcoin in circulation. The people who are constantly verifying the blockchain, ensuring that all the information is correct and update it each time a transaction is made, are called ‘miners‘. One way to think of miners is they are those who confirm transactions.

Their job is to ensure that the transaction is secure and processed properly and safely. In return for their services, miners are paid fees by the vendors/merchants of each transaction and are also given physical, minted bitcoins. Miners are generally considered to be the richest people in the chain.

Why the popularity of Bitcoins, especially in 2017?

Bitcoins are growing in popularity, and although they were largely used by speculators who were looking at it as a way to make money by buying bitcoins at lower prices and selling them at higher prices (much like trading foreign exchange or forex), there is a growing trend of businesses accepting Bitcoin as a form of payment.

Bitcoins have been popular in Ghana and around the world in 2017 mainly because of the tremendous gains made by the currency. The value in 2017 alone has increased from around $1,000 in January to $15,000 in the beginning of December.

Many people think that owing Bitcoin will magically make them rich, but this is totally not true. Bitcoins can make you lose money too.

Determining the value of bitcoins

Bitcoins are like any other currency: they fluctuate in value relative to other currencies. Similar to how the Ghana Cedis’ valuation with respect to the US dollar is not static, bitcoins have had drastic movements in price as well and this is likely to continue, positively and negatively.

At the time of writing the first version of this article, one bitcoin was worth GHS 72144.36

The value of a bitcoin is constantly changing, and there is no centralized exchange for it. Picture this scenario: each time a bitcoin changes ownership from the seller to buyer, the two parties need to agree on its price. There is no ‘fixed’ price. Usually, it’s the seller’s responsibility to give a fair price to the buyer based on what rate bitcoins are being traded in elsewhere.

In Part 2 of this series, we will look at how to get started and get bitcoins, what to do with your bitcoins, bitcoin wallets, how to safely buy bitcoins and what to do with your bitcoins.

Thank you for reading. Don’t forget to share this with your family and friends. For the latest tech news and reviews, follow Mfidie on Twitter, Facebook, Instagram and subscribe to our YouTube channel.
If you want to be part of our team of writers or you want to Guest write, send a WhatsApp Message to 0242022161 or simply call. You can also fill the form here to join our team and we will contact you back.