Bitcoin is a virtual currency that may be exchanged through the web from one individual to another. It’s like cash for the internet. The magic behind it is all the people participating in keeping track of transactions. Click this image below to start your bitcoin journey.
In Egypt, at least three companies sell & buy bitcoins from individuals or other companies via wire transfers, cash by mail services, or online with Egyptian pounds.
7 reasons bitcoin benefits the economy of Egypt:
1. No exchange controls:
With Bitcoin, no central bank can control the currency and devalue it overnight. It’s decentralized and global, so people from all over the world may use it freely.
2. Low or zero fees:
Most of the time, you transfer to a different country, you will have to pay expensive fees for the transaction to occur. With Bitcoins, there are no foreign exchange dealers or brokers trying to make money out of you, so it’s very cheap.
3. Quick transactions:
Usually, when you make international transactions through banks or other institutions, it will take 1 – 2 days before the money arrives at its destination. However, with bitcoin, the marketing is done in a matter of minutes.
4. No downtime:
When you make wire transfers from your bank account to another one, the bank holiday or the weekend might delay your transfer by a few days. With Bitcoins, as long as you have an internet connection, there’s no downtime.
5. Anonymity:
Bitcoins are anonymous. You don’t need to make a bank account or give out your personal information when making transactions, so they’re great for people who want to do something legal but not be tracked down by the government.
6. No inflation:
The world is known for its use of FIAT money, which means that you have to take care of it by saving it, or else the government can print more money, and your money will devalue. With Bitcoin, there are only 21 million in circulation worldwide, so things cannot get out of control with inflation.
7. Security:
Banks are robbed daily; private information has been hacked into before. However, bitcoins are digital, so there’s no way for them to be stolen or hacked, only the password you use to get in.
5 ways how bitcoin can become more prevalent in Egypt:
- Companies like eToro will need to open an office in Egypt and start recruiting people.
- Egyptians living abroad might make it popular by setting up businesses in their countries and accepting bitcoins for services.
- Maybe college students will start using them when sending money back home to their families since there’s no way to track it and fees are usually high.
- More vending machines might pop up selling bitcoins since they only require the internet to work.
- Companies like Amazon or eBay might eventually accept them as a payment method.
4 reasons bitcoin can negatively affect the Egyptian economy
- Securing the network of bitcoin takes up a lot of electricity. This might lead to higher power bills for Egyptians if bitcoin becomes famous worldwide.
- If something happens to the internet in Egypt or hackers take down whole parts of it, then all transactions that were going on will halt, and you won’t know if your bitcoins were lost or not.
- Bitcoins are still very volatile right now, so they might cost a different amount from hour to hour, day to day. This cannot be nice for businesses that must make accurate calculations when dealing with money.
- The idea of bitcoins is new for people, so they might be suspicious of it since there’s no physical money involved.
Bitcoin in Egypt is still very new, but more businesses will understand the benefits of using it with time. But, of course, it all depends on how fast governments rule over cryptos and if they allow them or not.
Conclusion:
Bitcoins are becoming more popular globally, but it needs many things to become mainstream in Egypt. First, people need to start using them when making online transactions, or businesses accept them for goods and services.
