[kictanet] Public Notice by CBK on Virtual Currencies

[Ngigi Waithaka]

Mark,

Where does Bitcoin derive its value? Because its rare and others are
willing to pay for the same rarity... Think of Gold, usually not very
useful, but its rarity and the fact that we and others like 'looking' at it
gives it value.

Why do 'others' like to pay for Bitcoin? Because it gives them value and it
helps them to transfer value to others.

As for a Central Organization *minting* more Bitcoins, that's not exactly
possible. why, because Bitcoin is an algorithm that lets those with serious
CPU Power to mine (generate) bitcoins.

Minting Bitcoins is actually very decentralized and even *you* can do it.
The algorithm guarantees that:
1. It becomes exponentially harder to keep on minting Bitcoins once the
minting started. So you need more computer now to keep generating Bitcoins
2. There are a finite number of Bitcoins that can currently be generated
with the resources available
3. No central authority can generate Bitcoins and hence flood the market

Some beautiful Math this is...

Rgds


On Wed, Dec 16, 2015 at 6:02 PM, Mark Mwangi via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> But where does Bitcoin derive its value? The USD is backed by the US
> government and so long as the US remains competitive and strong so does the
> dollar. Same for the Kenya Shilling. Bitcoin is only valuable now because
> its rare. Nothing else.
>
> As has been mentioned before the "Anonymous" nature of it means it could
> easily be a smart government experimenting. What happens if they decide to
> mint some more once it has become mainstream?
>
> Sure the technology may eventually take hold in some form but I doubt it
> will be in its current iteration.
>
> On Wed, Dec 16, 2015 at 4:22 PM, meshack emakunat via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> maybe the reason as to why the CBK has somehow distanced itself form
>> Bitcoins is probably the nature and structure and model that drives them.
>> i.e they are designed to remain almost unregulated. My say is what if the
>> solution is not the absolute regulation that is applied to other
>> currencies(paper money,? what if the solution is just the relative
>> regulation that the currency seeks. by relative i mean if bitcoin can be
>> allowed to and accepted as a legal tender and a medium of exchange for "the
>> internet economy"
>>
>>
>> REGARDS
>>
>> MESHACK
>>
>>
>>
>> On Wednesday, December 16, 2015 3:28 PM, Ali Hussein <ali at hussein.me.ke>
>> wrote:
>>
>>
>> Meshack
>>
>> You have brought Ina whole new dimension to this discussion.
>>
>> Your assertions by the way are true. That is however changing very fast
>> with new players surfacing very fast. This is a $580 billion global money
>> movement space with about $50 billion in fees/and or forex spreads. You can
>> now see why bitcoins can upset the apple cart..but that's a discussion for
>> another day.
>>
>> To Mwendwa's question/comment about bitcoins and Imperial Bank. Not sure
>> this is an apples for apples comparison. Bitcoins are a currency and
>> Imperial Bank issue is mainly one of depositors potentially loosing money
>> because of unscrupulous management and inability of Central Bank to timely
>> regulate.
>>
>> *Ali Hussein*
>> *Principal*
>> *Hussein & Associates*
>> +254 0713 601113 / 0770906375
>>
>> Twitter: @AliHKassim
>> Skype: abu-jomo
>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>> <http://ke.linkedin.com/in/alihkassim>
>> Blog: www.alyhussein.com
>>
>> "Discovery consists in seeing what everyone else has seen and thinking
>> what no one else has thought".  ~ Albert Szent-Györgyi
>>
>> Sent from my iPad
>>
>> On 16 Dec 2015, at 1:58 PM, meshack emakunat <memakunat at yahoo.com> wrote:
>>
>> Hello All
>>
>> did you know that migrant Africans are charged a whole 12% or more on
>> remittances back home from developed countries and that these charges are
>> 2wice the global rate.  and that 66% of the global (to africa) remittances
>> are from MTOs such as Moneygram and Western union
>>
>> REGARDS
>>
>> MESHACK
>>
>>
>>
>> On Wednesday, December 16, 2015 10:52 AM, Ali Hussein via kictanet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>>
>> Josiah
>>
>> Umeongea kama wazee kumi! (spoken like 10 wise men!)
>>
>> *Ali Hussein*
>> *Principal*
>> *Hussein & Associates*
>> +254 0713 601113 / 0770906375
>>
>> Twitter: @AliHKassim
>> Skype: abu-jomo
>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>> <http://ke.linkedin.com/in/alihkassim>
>> Blog: www.alyhussein.com
>>
>> "Discovery consists in seeing what everyone else has seen and thinking
>> what no one else has thought".  ~ Albert Szent-Györgyi
>>
>> Sent from my iPad
>>
>> On 15 Dec 2015, at 1:24 PM, Josiah Mugambi via kictanet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>> BitPesa requires proof of identity before use. I found it quite lengthy
>> and a tad tedious while signing up sometimes back. That somewhat takes care
>> of KYC procedures though.
>> I think CBK are obligated to make this position as a caveat emptor. An
>> idea for them might be to use this case with BitPesa as a pilot with the
>> view of coming up with regulations. Especially as cryptocurrencies are not
>> going away any time soon.
>>
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>>
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>> for people and institutions interested and involved in ICT policy and
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>> sector in support of the national aim of ICT enabled growth and development.
>>
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>> online that you follow in real life: respect people's times and bandwidth,
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>> not spam, do not market your wares or qualifications.
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>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>> for people and institutions interested and involved in ICT policy and
>> regulation. The network aims to act as a catalyst for reform in the ICT
>> sector in support of the national aim of ICT enabled growth and development.
>>
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>> online that you follow in real life: respect people's times and bandwidth,
>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>> not spam, do not market your wares or qualifications.
>>
>
>
>
> --
> Regards,
>
> Mark Mwangi
>
> markmwangi.me.ke
>
>
>
>
>
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>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>



-- 
*Regards,*

*Wait**haka Ngigi*
Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building
T +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000
www.at.co.ke
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