Kenya is one of the numerous technologically advanced countries in Africa. This progress has led to many Kenyans taking advantage of new technologies, including cryptocurrencies. This blog post will examine the different cryptocurrencies unrestricted in Kenya.
We will also outline how each type of cryptocurrency works. Finally, we will discuss the advantages and drawbacks of using cryptocurrencies in Kenya today.
What is Cryptocurrency?
As to Investopedia, Cryptocurrency is a digital currency that employs cryptography to make it almost impossible for counterfeiters and dual spenders.
Cryptocurrencies are a extreme form of money. They have no central authority, which suggests they can be sent from person-person without relying on banks or governments for support and security against inflationary forces like traditional currency goes via when there’s too much demand in circulation comparable to their supply.
Lastly, unlike the Kenya shilling and other important currencies, cryptocurrencies have no physical form as they only exist as a series of numbers.
The Most Common Types of Cryptocurrency in Kenya
According to TripleA, a Crypto remuneration gateway based in Singapore, over 4.5 million Kenyans hold cryptocurrency.
This number designates 8.5% of the Kenyan population, and these people own the ensuing cryptocurrencies:
The first cryptocurrency to be made in 2009, Bitcoin, operates on a peer-to-peer grid.
The way the Bitcoin system operates is that miners use special software to solve math problems, and it awards them with Bitcoins because of this work.
Miners then use these Bitcoins to expend for goods, services or trade them for altcoins or different cryptocurrencies.
The primary advantage of Bitcoin is that it is very secure because of its cryptography and decentralized network.
The disadvantage of Bitcoin is that its value is highly volatile.
They made Ethereum in 2015 to respond to some problems faced with Bitcoin.
Ethereum varies from Bitcoin because it uses a blockchain technology named “smart contracts.”
Smart agreements are computer programs that allow two or more parties to agree on and perform a contract with no third party.
This feature makes Ethereum more efficient to Bitcoin and has directed to its popularity.
They designed Litecoin in 2011 as a “light” version of Bitcoin.
Litecoin is like Bitcoin because it works on a peer-to-peer network and uses cryptography.
The fundamental distinction between the two cryptocurrencies is that Litecoin features more rapid transaction times and has a higher coin limitation (84 million) than Bitcoins 21 million.
Created by the cofounder of Ethereum, Cardano is a decentralized payment forum that uses smart contracts.
It also has a cryptocurrency named ADA, which you can use for online and in-person transactions.
The advantage of using Cardano over other cryptocurrencies is its safety and multi-layer architecture. The drawbacks of this cryptocurrency is that it is fairly new, meaning that many Kenyans are yet trying to figure out its full potential.
Ripple is a cryptocurrency that utilizes blockchain technology and runs on a decentralized network.
The primary advantage of Ripple is the speed at which it achieves transactions since it takes seconds for XRP tokens to earn their way from one wallet to another.
It was founded in 2012 as Ripple, and these days it is known as XRP.
Another famous type of cryptocurrency in Kenya is Dogecoin.
It has infinite coins and a block time of 1 minute.
At first, Dogecoin was suggested as a joke currency. But it has since increased in popularity and is now traded on exchanges worldwide- much to everyone’s amazement!
Many Kenyans hold Bitcoin as the base currency when buying other cryptocurrencies since Bitcoin is the most famous and valuable digital currency in Kenya.
The cryptocurrency landscape is highest of potential, but it still remains to be seen which coin will contra supreme.
Data on each cryptocurrency in Kenya today is still being assembled and will be updated late