Bitcoin, a growing cryptocurrency yesterday exceeded the price of Gold at the stock exchange to become more valuable and precious than Gold.
Cryptocurrencies are still new to Uganda with Bitcoin being the first that made slow entry into Uganda getting mainstream popularity last year. It also grew more popular when the Bank of Uganda warned people against it since its volatile and unregulated, following their comrades in Kenya.
A single unit of the digital cryptocurrency closed yesterday at shs 4.6m ($1,268), while an ounce of the precious metal Gold stood at shs 4.44m ($1,233).
Bitcoin is moving higher because of demand in China. According to the BBC, Chinese authorities have warned it is being used to carry money out of the country and have tightened rulings on use of the cryptocurrency earlier this year.
As more people invest in Bitcoin around the world since it has safe measures of anonymity and isn’t easy to track by authorities, the total value of all outstanding Bitcoin in the world also passed shs 72 trillion ($20bn) for the first time in bitcoin’s history.
The other digital currency Ether also exceeded the value of Silver yesterday.
Will Bitcoin go higher and replace Gold as the alternative asset to currency? Time will tell.
Is Bitcoin a worthy investment in Uganda? If you know well enough what you are doing, yes. If you don’t, first study more about how it works.