Why Kenyans Need Bitcoin Now More Than Ever

As of July 2024, Kenya finds itself at a critical juncture both politically and economically. The proposed Finance Bill 2024 has ignited intense debate and widespread concern among citizens, sparking protests across major cities. Aimed at addressing fiscal deficits, the bill introduces significant tax hikes and austerity measures that threaten to exacerbate the country’s economic woes. With inflation surging to 4.3%,according to the Kenya National Bureau of Statistics, unemployment and underemployment rates remaining high, and the Kenyan shilling depreciating, many Kenyans are searching for alternatives to secure their financial futures.

In this context, Bitcoin offers a beacon of hope. As a decentralised digital currency, Bitcoin operates independently of any central bank or government, making it immune to the unpredictable swings of political decisions and economic policies. This stability, along with its potential to preserve wealth, offers a viable alternative for Kenyans navigating these turbulent times.

The Case for Bitcoin in Kenya

1. Hedge Against Inflation

Bitcoin’s capped supply of 21 million coins makes it a deflationary asset, offering protection against the inflation that is rapidly eroding the purchasing power of the Kenyan shilling. Unlike traditional fiat currencies, which can be printed in unlimited quantities, Bitcoin’s scarcity ensures that its value is preserved over time, making it an effective hedge against inflation.

2. Financial Inclusion

A significant portion of Kenya’s population remains unbanked or underbanked, lacking access to traditional financial services. Bitcoin can bridge this gap by providing a decentralised financial system accessible to anyone with a feature phone, smartphone, and internet connection. Services like Machankura and Bitnob are examples of African-owned Bitcoin wallets that facilitate transactions via mobile devices, enabling even those without a traditional bank account to participate in the global economy.

3. Lower Transaction Costs for Remittances

Remittances are a crucial source of income for many Kenyan families, but traditional services often charge high fees and take several days to process transactions. Bitcoin can significantly reduce these costs and increase transaction speed. Platforms like Bitnob and Tando offer lower fees and faster transfers, allowing more money to reach the intended recipients quickly and efficiently.

4. Economic Empowerment

By embracing Bitcoin, Kenyans can reduce their dependence on the traditional financial system and government policies, taking control of their financial destiny. Bitcoin allows individuals to store value independently and transact freely, without the need for intermediaries.

Real-Life Applications and Success Stories

Kenya is already seeing the benefits of Bitcoin adoption through local initiatives. Bitsoko, a Kenyan startup, uses blockchain technology to facilitate cheaper and smoother fund transfers between individuals. Similarly, Gridless, another Kenyan company, focuses on Bitcoin mining in rural communities, creating jobs and supporting sustainable energy solutions.

Testimonials from Kenyan Bitcoin users further underscore the practical benefits. For instance, Sarah, owner of Sarah Nutritives, a business located in Mfangano House, CBD and a cohort 2 alumna, has integrated Bitcoin into her business, accepting payments and educating her community about its benefits.

Addressing Common Concerns

While Bitcoin offers significant advantages, concerns about volatility, regulation, and security are valid. To mitigate risks associated with Bitcoin investments, strategies like diversification, dollar-cost averaging, and long-term holding are recommended. Additionally, educating oneself about Bitcoin is crucial for understanding its risks and rewards. Using secure storage options such as hardware wallets and enabling two-factor authentication can further protect Bitcoin holdings.

Kenya’s regulatory environment for Bitcoin is evolving, with the Central Bank of Kenya issuing warnings about the risks while not imposing a blanket ban. As the framework develops, supportive regulations could foster greater confidence and adoption of Bitcoin in Kenya.

How to Get Started with Bitcoin

For those interested in exploring Bitcoin, getting started is straightforward:

• Choose a Bitcoin Wallet: Opt for secure options like Machankura, Bitnob, Blink Walletor Wallet of Satoshi.
• Register with a Bitcoin Exchange: Sign up with reputable exchanges like Binance, Bitnob, or Strike that support transactions in Kenyan shillings.
• Buy Bitcoin: Follow a step-by-step guide to purchase Bitcoin, ensuring secure storage afterward.

Using Bitcoin in daily life is becoming more convenient with tools like Tando, you can now spend Bitcoin anywhere M-Pesa is accepted in Kenya, without any transaction fees. This makes it easier for Kenyans to use Bitcoin for everyday needs like buying goods or paying bills. Businesses benefit by accepting Bitcoin, attracting tech-savvy customers, and cutting transaction costs.

Conclusion

In conclusion, Bitcoin offers a range of benefits for Kenyans amid the current economic challenges. Its potential to provide economic stability, financial inclusion, and efficient remittance services positions Bitcoin as a valuable tool for enhancing financial resilience and independence. As Kenya navigates its economic challenges, Bitcoin presents a unique opportunity for financial empowerment and independence.

Kenyans should consider Bitcoin not just as an investment but as a tool for financial resilience and inclusion. By educating themselves and leveraging the resources and strategies outlined above, they can make informed decisions and potentially benefit from the advantages Bitcoin offers.