• Happy New Year, and Wishing You A Productive 2021

Bitcoins

Eng'iti

Village Sponsor
#4
Business News
CBK Governor Patrick Njoroge warns Bitcoin rush could be pyramid scheme
By Otiato Guguyu
Published: Nov 24th 2017 at 20:16, Updated: Nov 25th 2017 at 00:21


(Photo: Courtesy)
SUMMARY
  • CBK issued the warning after a Kenyan company BitPesa that offers the service came into the limelight when Safaricom ordered one of its clients Lipisha to cut links with BitPesa
  • Thousands of Kenyans are catching on the cryptocurrency craze, gambling millions of Bitcoins and Ethereum whose value has risen sharply over the past few months
Central Bank of Kenya has warned that the rising popularity of Bitcoins may be a pyramid scheme that will leave Kenyans smarting from losses.

CBK Governor Dr Patrick Njoroge said cryptocurrencies are risky and consumers may not be protected. In 2015, the regulator issued a similar warning on digital currencies.

ALSO READ: Central bank governor sees five percent inflation next year, beyond

CBK issued the warning after a Kenyan company BitPesa that offers the service came into the limelight when leading mobile service provider Safaricom ordered one of its clients Lipisha to cut links with BitPesa. The two firms have since sued the telco.


"We warned everybody that this was a risky venture and and the consumer is not protected,” Dr Njoroge said.

"It could very well be a Ponzi scheme of a kind, I think you have seen how the prices have gone up and down in various places.”

Thousands of Kenyans are catching on the cryptocurrency craze, gambling millions of Bitcoins and Ethereum whose value has risen sharply over the past few months.

Social media has helped fuel this craze with stories of people who make Sh100,000 in daily income. The traders who pool their money in clubs mainly make money from mining the currency.

ALSO READ: Tough financial balancing act for CS Henry Rotich

"Our point is that there risk and it is important that everybody knows that those risks can come back to haunt us and could have financial stability concerns,” Njoroge said.

The CBK boss also said he is opposed to the currency since it can be used in illicit trade due to its anonymity.


In the dark web (where computers use the internet without being identified), Bitcoin is the currency of choice for hackers, contract killers and drug peddlers. In fact, the designer of the Ransomware attack in June this year asked each affected computer (user) for Sh30,000 ($300) in Bitcoins.

“Of course there are other considerations for example allowing the illicit transactions and things like that, all those are there,” he said.

CBK also insists that it has the mandate to protect consumers from the ‘Bitcoin bubble’. A market bubble is where investors behave like a herd and push the value of instruments above what they are worth only for them to lose out when the market corrects itself.

Market bubbles include the 2008 mortgage finance crisis, the dot com bubble as well as the Dutch tulip bubble where speculation drove the prices of flowers over the value of a house in Amsterdam.

“We have seen this game before, we have seen it in the context of the global financial crisis, years ago we have seen the speculation that took place in the tulip mania. This are all risks that are out there,” he said.

ALSO READ: Investors keep off government securities as political standoff persists

Most of the international community is yet to come up with regulation for the Bitcoin system and most central banks have opposed it.

It has no home country so it is neither local nor foreign currency and so it is out of CBK’s scope. However, Central bankers have been studying the currency with a view of creating a safer system based on the technology.

"These cryptocurrencies are using a technology known as block chain. There may be a future for block chain. We are working with our peers around the world on things that could lead to using this technology in particular ways,” Njoroge said.

He said that Kenya needed to distinguish the product with technology which may very well be a good technology.

In fact, Bank for International Settlements, world’s central banks can’t ignore the growth in cryptocurrencies and may at some point have to consider whether it makes sense for them to issue their own digital currencies.
 

john_doe

Village Elder
#11
Business News
CBK Governor Patrick Njoroge warns Bitcoin rush could be pyramid scheme
By Otiato Guguyu
Published: Nov 24th 2017 at 20:16, Updated: Nov 25th 2017 at 00:21


(Photo: Courtesy)
SUMMARY
  • CBK issued the warning after a Kenyan company BitPesa that offers the service came into the limelight when Safaricom ordered one of its clients Lipisha to cut links with BitPesa
  • Thousands of Kenyans are catching on the cryptocurrency craze, gambling millions of Bitcoins and Ethereum whose value has risen sharply over the past few months
Central Bank of Kenya has warned that the rising popularity of Bitcoins may be a pyramid scheme that will leave Kenyans smarting from losses.

CBK Governor Dr Patrick Njoroge said cryptocurrencies are risky and consumers may not be protected. In 2015, the regulator issued a similar warning on digital currencies.

ALSO READ: Central bank governor sees five percent inflation next year, beyond

CBK issued the warning after a Kenyan company BitPesa that offers the service came into the limelight when leading mobile service provider Safaricom ordered one of its clients Lipisha to cut links with BitPesa. The two firms have since sued the telco.


"We warned everybody that this was a risky venture and and the consumer is not protected,” Dr Njoroge said.

"It could very well be a Ponzi scheme of a kind, I think you have seen how the prices have gone up and down in various places.”

Thousands of Kenyans are catching on the cryptocurrency craze, gambling millions of Bitcoins and Ethereum whose value has risen sharply over the past few months.

Social media has helped fuel this craze with stories of people who make Sh100,000 in daily income. The traders who pool their money in clubs mainly make money from mining the currency.

ALSO READ: Tough financial balancing act for CS Henry Rotich

"Our point is that there risk and it is important that everybody knows that those risks can come back to haunt us and could have financial stability concerns,” Njoroge said.

The CBK boss also said he is opposed to the currency since it can be used in illicit trade due to its anonymity.


In the dark web (where computers use the internet without being identified), Bitcoin is the currency of choice for hackers, contract killers and drug peddlers. In fact, the designer of the Ransomware attack in June this year asked each affected computer (user) for Sh30,000 ($300) in Bitcoins.

“Of course there are other considerations for example allowing the illicit transactions and things like that, all those are there,” he said.

CBK also insists that it has the mandate to protect consumers from the ‘Bitcoin bubble’. A market bubble is where investors behave like a herd and push the value of instruments above what they are worth only for them to lose out when the market corrects itself.

Market bubbles include the 2008 mortgage finance crisis, the dot com bubble as well as the Dutch tulip bubble where speculation drove the prices of flowers over the value of a house in Amsterdam.

“We have seen this game before, we have seen it in the context of the global financial crisis, years ago we have seen the speculation that took place in the tulip mania. This are all risks that are out there,” he said.

ALSO READ: Investors keep off government securities as political standoff persists

Most of the international community is yet to come up with regulation for the Bitcoin system and most central banks have opposed it.

It has no home country so it is neither local nor foreign currency and so it is out of CBK’s scope. However, Central bankers have been studying the currency with a view of creating a safer system based on the technology.

"These cryptocurrencies are using a technology known as block chain. There may be a future for block chain. We are working with our peers around the world on things that could lead to using this technology in particular ways,” Njoroge said.

He said that Kenya needed to distinguish the product with technology which may very well be a good technology.

In fact, Bank for International Settlements, world’s central banks can’t ignore the growth in cryptocurrencies and may at some point have to consider whether it makes sense for them to issue their own digital currencies.
Off course central banks can not endorse crypto currency, show me a pyramid scheme with a market cap of $162.42 billion, buy a bitcoin today and after 1 year you will thank me today its value is $9700 last week Monday it was $8200
 

m245

Village Elder
#17
Too late to invest in it now. It's better to look for a new coin with potential for growth.

wrong i trade mine at a site that buys at a good rate at this time you get 192000 extra from the current market value that means if you buy 1btc from the cheapest rated vendor on lbc at this time who is selling at
1,010,307.93
you will get a clean profit of 132k on it
 
#18
Bitcoins is a threat to global currencies ($$$$) and the shadows that control them in washington (rothschild) that's why its been fought rigorously. Even if they succeed another e-currency will replace it and I hope it wouldn't be their own.
Interesting points you raise but I would like to respectfully state that the opposite is true.

In fact its the rothschilds, deep state, nwo behind Bitcoins. Let me tell you one thing, if anyone ever starts something that is a threat to the nwo & co, they quickly find out kweli hawajui.

If Bitcoins were a threat to those guys, they wouldn’t be in use, period. You can’t be a threat to those guys and live to talk about it.

Like I stated in an earlier article, some websites have been kicked off the web. And yet most people do not know that one can be kicked off the internet. Reason: They were writing articles that threatened the rothschilds, Deep state, nwo interests. And interestingly, you are kicked off the internet and no media writes about it.

Actually, the mainstream media will gladly inform you that it is not possible to be kicked off the internet. They will also gleefully inform you that the dark web is popular because you are 100% anonymous there. Now, most people cannot doubt something confirmed by the biggest and most ‘credible’ media and websites.

And yes, its the nwo behind tor. And yes, one of the websites kicked off the surface web went to the dark web, and found it also has its owners. Phew!

Interesting seeing that people use the dark web for illegal stuff (the nwo know all about who is selling/buying what), but if you start exposing them there, they kick you out, or you get a slug on back of your head.

So there you go. Bitcoins started initially being very popular in the deep web where people thought their transactions were anonymous. But now it is mainstream.
 
Last edited:

spear

Village Sponsor
#19
Interesting points you raise but I would like to respectfully state that the opposite is true.

In fact its the rothschilds, deep state, nwo behind Bitcoins. Let me tell you one thing, if anyone ever starts something that is a threat to the nwo & co, they quickly find out kweli hawajui.

If Bitcoins were a threat to those guys, they wouldn’t be in use, period. You can’t be a threat to those guys and live to talk about it.

Like I stated in an earlier article, some websites have been kicked off the web. And yet most people do not know that one can be kicked off the internet. Reason: They were writing articles that threatened the rothschilds, Deep state, nwo interests. And interestingly, you are kicked off the internet and no media writes about it.

Actually, the mainstream media will gladly inform you that it is not possible to be kicked off the internet. They will also gleefully inform you that the deep web is popular because you are 100% anonymous there. Now, most people cannot doubt something confirmed by the biggest and most ‘credible’ media and websites.

And yes, its the nwo behind tor. And yes, one of the websites kicked off the surface web went to the deep web, and found it also has its owners. Phew!

Interesting seeing that people use the deep web for illegal stuff (the nwo know all about who is selling/buying what), but if you start exposing them there, they kick you out, or you get a slug on back of your head.

So there you go. Bitcoins started initially being very popular in the deep web where people thought their transactions were anonymous. But now it is mainstream.
NWO- New world Order. Nothing scares me more than that. Its really disappointing bitcoin is in their crasp.
 
#20
NWO- New world Order. Nothing scares me more than that. Its really disappointing bitcoin is in their crasp.
True, you don’t joke with those guys.

Apologies to OP cos am going to digress a bit. If you want to know something the rothschilds/deep state/nwo do not control, or feel they do not have full control, just follow the mainstream media. When the media is always hostile or report negatively all the time about a powerful entity, then the nwo & co feel threatened by that entity.

Example. The mainstream media is always hostile to Trump. That proves the deep state feel they do not control him as they would want to. Forget whether he is good or bad for a moment. When you look at the appointments he has made, there’s no difference with those made by previous presidents. ie he has bent over backwards to please the deep state, lakini wapi!

I think the real reason the nwo/deep state are so hostile to Trump despite him not doing anything to antagonise them is that they fear that he could one day wake up and declare real war on them. Hawalali! mpaka wamtoe.:D:D
 

Top