Is it possible to start a Bitcoin business in Nigeria? What is Bitcoin? Bitcoin is a cryptocurency. What is a cryptocurrency you may ask. A Cryptocurrency is an online medium of digital exchange that is not regulated by a central system. Unlike the naira that is regulated by the Central Bank of Nigeria, or other currencies with their own central banks, cryptocurrencies are decentralized.
Bitcoin was the first and is the largest cryptocurrency in existence made by Satoshi Nakamoto. Unfortunately a lot of people may have the misconception that it belongs with ponzi and other illegitimate online schemes. So, let me assure bitcoin is a legitimate and secure currency, as legitimate as the paper money with which you buy food.
How does it work?
There is only way through which bitcoins are made, and that is by Bitcoin mining, ill talk more about this later so for now I’ll give a brief intro.
To ensure that the amount of bitcoin in circulation is regulated and balances are kept, to prevent such things as double spending, every transaction that occurs with bitcoin is confirmed and entered into a public ledger called the Blockchain. Confirmed transactions are called blocks, new blocks are added to a chain of blocks-that can neither be edited nor destroyed, the blockchain. No one can use the same bitcoin twice. This is what bitcoin miners do. They confirm. And then they are rewarded. And that reward is how bitcoins are made. There are currently about 16 million bitcoins in circulation.
The best part is that anyone can be a miner, thus bitcoin can be said to be more secure than any paper currency because you can ensure yourself that the numbers are correct and those numbers cannot be changed by anyone. Unlike your bank account where the numbers can be manipulated. Now that we know what Bitcoin is,
Bitcoin Business you can Start
The first step is to get a bitcoin wallet. Different sites and apps offer bitcoin wallets. A very popular one is coinbase. When picking a site, make sure it’s a secure one. Coinbase is known to be very secure.
There are a number of ways to make money from Bitcoin;
Freelance jobs for bitcoin
Offer your skills, do jobs and get paid in bitcoin. Visit sites like BitGigs, Jobs2Bitcoins, Upwork, Freelancer. The sites display a job board where you can exchange your skills for bitcoins.
Menial work for bitcoin
Watch ads and click on links, take surveys in exchange for bitcoins. Examples of sites where you can do this are coinAd, CoinWorker etc. These are viable options, but you don’t necessarily need bitcoin to do these. The opportunities exist outside of bitcoin.
When you mine, your computer finds new blocks and adds them to the blockchain. For every new block your computer finds, you receive a certain amount of bitcoins. A “bitcoin reward”.
There are a number of ways you can do this
1 You can use your current computer. Obtain mining software and mine on your own.
This is the least profitable way of mining. But you can still earn money. Because the amount you earn from depends on how fast your computer solves the mathematical problems it needs to, (Such a problem is called a “Hash”) measured in MH/s (Mega Hash per second), GH/s (Giga Hash per second) etc.
2 You can join a mining pool. This is a group of miners that joins together to mine more effectively. Your computers abilities are joined to the pool, and this increases the overall hash rate of the pool.
Individual miners are paid according to their relative hash rates.
3 You can purchase your own mining computer. Such as the AntMiner s7 with a hash rate of 4.73 TH/s (Tera Hash/ second), or better still Antminer s9 with a hash rate of 13.5 TH/s compared to normal pc’s which are in the GH/s, Giga hash per second rates. In fact you can start a mining farm. They are a bit expensive. But instead of buying yourself the new iphone, you can buy one of these instead.
Some say mining is not worth it because there is a limited supply of bitcoin to mine (21 million), which means that as time goes on there will be less money and more competition. But if you can take on the challenge, there is still a lot of money to be made from it.
Bitcoin users have to pay a small fee for every transaction. When all the bitcoins have been mined, this fee will increase, so that miners are still rewarded a fairly constant amount for every block. This is so that people will continue mining, because the system cannot function without them.
Buy bitcoin when/where the price is low and sell when/where it is high. It is just like stock trading and is likely the fastest and easiest way to make profit from bitcoin. You can buy and sell bitcoins in nigeria with sites like Nairaex, Remitano and Luno and then fill your bitcoin wallet, but these site are for trade only in naira. Open trading accounts with foreign bitcoin exchanges and you can trade bitcoin with other currencies directly.
It is an easiest way to make money from bitcoin.
You can lend bitcoin, the same way you would lend money and collect with interest. There are online lending “banks” where you can register and put your bitcoins. They will lend the money for you and give you back with the interest! As we become more accustomed to bitcoin, more people will use it and more will need and borrow it. This is another easy way to make money with bitcoin.
The creator of bitcoin made it like a natural resource. There is a maximum limit of bitcoin that will ever be in circulation, 21 million. Miners have only unearthed about 16.6 million but once they reach 21 million, that’s it!! In 2015 one bitcoin cost about 85 thousand naira. A bitcoin today costs 1.3 million naira!! Just like any investment in gold, bitcoin is a huge opportunity. Buy bitcoin now, and store it for later because regardless of how the naira fluctuates, the bitcoin will be independent. Imagine if you had bought 10 bitcoins 2 years ago, and sold them today, you would make a profit of over 10 million naira! But it’s not too late, buy today.
Bitcoin has presented a number of very profitable doors to you, the choice is yours which one you want to open.