Looking Beyond The Hype Of Cryptocurrencies

The Bitcoin frenzy has taken over the world, and here in Zimbabwe, even some people who do not know much about the cryptocurrency are raving about its upward surge. While RBZ is still doing research on Bitcoin, as for now, the most popular cryptocurrency is illegal in Zimbabwe. But how many people are interested in investing in cryptocurrencies?

While the jury is still out on whether Bitcoin will continue to rise in the future; at the moment, the cryptocurrency is rising and earning huge profits for those who have invested in it. A lot of people are looking too far into the future and forgetting about the short term gains that can be made which makes investing in Bitcoin lucrative.

A Financial Analyst from Imara, Mr Gilbert Chamunorwa said that he wouldn’t invest in Bitcoin because he is risk averse.

By Pearson Mbendera

“Personally I wouldn’t invest in Bitcoin. I cannot take the risk. I don’t know much about it since its not something I have worked with before” said Mr Chamunorwa.

But personally, he is a natural risk averse person and that affects how he judges the cryptocurrency.

He also noted that people need to know more about Bitcoin before thinking about investing in it as there are a lot of people making noise about Bitcoin without actually knowing what it is and how it works.

“You need to follow it closely and understand more about it before talking about investing in Bitcoin. You need to know the trends about Bitcoin to make sound judgement,” he added.

Finance people the world over haven’t really gotten on the same page with regards to Bitcoin.

Recently, North Korea’s government-backed hackers have been blamed for a rising number of cyber attacks, including the so-called WannaCry cyber attack that crippled hospitals, banks and other companies across the globe this year.

Analysts are saying that the explosive growth in the value of Bitcoin makes it and other cryptocurrencies an attractive target for North Korea, which has become increasingly isolated under international sanctions imposed over its nuclear weapons and missile programmes.

Considering the fact that Bitcoin is a decentralised currency, not regulated by any Central Bank, this makes the chances of it being used for criminal activities high. Already, there has been illegal activities that have been nurtured and necessitated by Bitcoin such as hacking, scams and fraud.

There is need to look beyond Bitcoins. Who is to say that given all the enmity between the US and North Korea, the US won’t sabotage Bitcoins to thump the funding of North Korean missiles.

Combining technology and finance to come up with an unregulated currency seems like something you’d find on the dark web, with a lot of dangerous criminals using it to launder their ill-gotten money. But that’s not the case with Bitcoin, they seem to be legit even though there are some that think it is a long scam. The fact that nothing is known about Satoshi Nakamoto, the creator of Bitcoin who is now rumoured to be Craig Wright an Australian security expert.

Leave a Reply

%d bloggers like this: