Tag Archives: James Wire

Bitcoins – To invest or not?

Posted on December 1, 2017 | 2 comments

Anyone with a dream of seeing bitcoin replacing major currencies is day dreaming ~ Sempangi Henry.

When I was a primary school pupil in the 80s, my younger sister had a pen pal from Finland. They would write to each other letters and even mail one another gifts. It took close to 4 months for a round trip letter communication between them. Upon entry into secondary school, I had friends in other schools within Uganda who I would write to and it took close to 6 weeks for a round trip communication. Had someone told me then that it would be possible to exchange messages or letters instantly without having to wait for such long periods, I would have objected vehemently. Why? Because my mind would be bloated by the status-quo.

Stewart Brand said, “Once a new technology rolls over you, if you aren’t part of the steamroller, you’re part of the road.” The buzz lately is Bitcoin, the oldest and most famous cryptocurrency today. In just one month i.e between 31st October and 30th November 2017, the currency value grew by 67% and in the process crossed the US$ 10,000 mark per bitcoin.bitcoin_growth

As usual, this has caused quite a stir among the different communities of investors in Uganda. Some are calling it a scam just like D9 while others simply cant figure out what a cryptocurrency is. To a good number of people, they may be justified to rightfully treat this bitcoin thing with suspicion because;

  • Cryptocurrencies are abstract. Having grown up using physical money of one form or the other, many of us are having a problem embracing money we cannot see and merely have to use faith to believe in the existence of these cryptocurrencies. Matters are made worse by the low understanding of information technology by the general public.
  • Who is in charge? We know that Bank of Uganda is in charge of the Uganda Shilling, Central Bank of Kenya is in charge of the Kenya Shilling etc. Who is in charge of Bitcoin? Ethereum? Litecoin? We are accustomed to amorphous bodies throwing their weight behind the currencies that we utilise and this is the same expectation being transferred to cryptocurrencies.
  • How is the cryptocurrency generated? How is more money made? Traditionally, the Central bank will just order for the printing of more money as and when it deems it suitable. How do Cryptocurrencies do it? There is a process called mining that is used to generate additional currency. Its kind of like having a copper factory where each time copper is needed, all they do is to get into the ground and mine more of it. This mining for cryptocurrencies is done digitally using computers to solve complex algorithms which once successful, additional currency is added to the cryptocurrency.
  • High risk. Cryptocurrencies are perceived as being highly risky. What happens if you try to log into the system and all you see is a System Fail error? Moreover if you lose your Private Key, that is the end of you. Your money is gone and can ever be recovered. This is a genuine fear but as someone who has seen banks close and account holders not get compensated, I believe a similar risk is with us even under the current approaches of financial management.
  • “What is Bitcoin’s value generator?” someone asked. The Uganda Shilling currency is either physical paper or metal coins printed with a set of unique features. Bitcoins are digital mathematical tokens whose production is carefully controlled by the Bitcoin network protocol. What gives these tokens value?
    1. Scarcity. There is a limited number of bitcoins that will ever be available and the number is pegged at 21 Million. As of 29th November 2017, 16,709,550 bitcoins had been generated according to Blockchain.info. If the bitcoin is to ever be a successful store of value, then scarcity is one important attribute. Gold, Silver and Diamonds are what they are because they are scarce.
    2. Divisibility. Just like a Uganda Shilling can be broken down into cents, the bitcoin too can be broken down and goes a step further of being broken down to the 8th decimal place. Using the value of the bitcoin (BTC) as of 30th November 2017, the table below illustrates the breakdown. The merits of divisibility for any currency are immense.btc
    3. Easily transferrable.Bitcoin transactions take place in a matter of seconds irrespective of their source or destination. The current bank controlled transactions can take days to accomplish. This here is value.
    1. Counterfeit proof. The design of bitcoin through the use of complex cryptography to safeguard transactions rules out the possibility of counterfeits hence solving one of the biggest challenges faced by the paper/coin based money we have to deal with on a daily basis. If this is not value, then I wonder what value is.

Above all though, the value of bitcoins is gained largely from its online community that accepted them as money as far back as 2009 and also do consider the features shared above to be worth something.

Value of any currency is derived partly from the belief, trust and confidence the community has in it. By virtue of having embraced bitcoins years back, the Bitcoin community didn’t need acceptability by anyone else or backing by authorities to succeed. On the contrary, the authorities and speculators are the ones rushing to embrace bitcoins.

The downfall of the Bitcoin will most likely be a result of the same community withdrawing its confidence and support.

The hot question currently is, To invest or not in bitcoins !!!

As an observer who has taken time to understand cryptocurrencies, I have observed that bitcoin branding is being positioned majorly as a store of value. Is it a good asset (store of value)? Probably no. The fact that it appears to have a highly volatile nature makes me have less confidence in it as an asset, at least for now.

BC_Rnd_64pxI also believe that more effort should be put in promoting transact-ability of bitcoin as this is likely to give it more value in future. Transactions are likely to grow the community and with this comes loyalty as well as its associated value.

Being a pioneer cryptocurrency, bitcoin is charting the blue ocean (uncharted waters) of digital finances. It’s bound to make numerous mistakes that could prove fatal to its very survival but one thing we can’t deny is that we are all learning daily from its journey.

So, you still want to buy bitcoins? I say, they are over priced currently. If you really have to, invest sums of money that will not hurt you much when this cryptocurrency implodes. Remember, buying the bitcoins is one thing, however, selling them is another. Information from those that are actively investing in them reveals that offloading bitcoins isn’t as smooth as they would want it to be.

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda

Follow @wirejames on Twitter.

Email lunghabo [at] gmail [dot] com

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Identifying Fake job Opportunities

Posted on November 18, 2017 | Leave a comment

Monday November 13th 2017 will go down as a very sad day for many young and ready to work youths who got conned into believing that they had got job offers with Java House in Kampala, Uganda.

The unemployment situation in Uganda is so dire that it has led to lots of frustrations among many youths. Most are either unemployed or under-employed. I know of a Business Administration degree holder who is woking as a brick layer at a construction site. What hurt most about the Java house ordeal was the word making rounds that the applicants had parted with nearly UGX 1 Million shillings to be considered.

This same frustration is the one leading a number of other youths to blindly opt for jobs in the Middle East under suspicious arrangements only to end up as slave labour or even sex peddlers.

In all this, how does one identify that a job opportunity is most likely fake? I share some of the telltale signs that should flag off suspicion in your mind in the event that a job offer is being made to you.

  1. Money Payment: Any job opportunity where you are urged to part with money is most likely fake. They might try legitimising the payment in various ways but genuine recruiters never ask money from the applicants since they are usually paid by the company contracting them to recruit on their behalf.

  2. Offers of an abnormal salary: When presented with an offer whose salary promise is way above the average market rates, always think twice. Let us take the example of a front desk officer (or receptionist) who on average earns between UGX 300,000/ and UGX 600,000/. For someone to tell you that there is an offer for a similar job that is giving a starting salary of UGX 2,000,000/, a red flag should immediately go off in your mind.

  3. Sounding too good to be true? Whenever you see an opportunity that sounds too good to be true, then probably it isn’t. You might see an advert stating a seven figure salary, all sorts of benefits like a car, life and health insurance, housing allowance, communication allowance etc, all these for an entry level graduate job. Most likely, this is a red herring. Do not waste your effort pursuing such since the next level might be a request for you to pay some money for special consideration.

  4. They contacted you: There are cases where you receive a call or email with an offer for a job. You have no clue about the company in question but they seem to know enough about you. Before blushing and rushing to dance to their tunes, it is important to find out how they got through to you. If you are an experienced professional with an impeccable track record, it is very likely you could be easily contacted. However, if you’re a fresh graduate with hardly no professional record worth talking about, take a step back and ensure that you’re not being led into a job scam aimed at ripping you off.

  5. Instant Job Offers: This could come in the form of an email or even after a staged interview. Take a step back my brother/sister, things just do not come easy lately. As the next steps are spelt out to you, analyse them and see if they are typical of a con being shoved your way. Most likely, after such a job offer, you might be requested for some processing fees which you might gladly pay, afterall you’ve got the job. If they do this to 100 interviewees with each surrendering processing fees of UGX 20,000/ they will casually walk away with UGX 2,000,000/.

  6. Unclear Job Requirements: Job offers that are never specific in their requirements are always aimed at attracting as many applicants as possible to apply and these are usually scams. The job might not require experience or even a level of education and yet at the same time offer a very abnormal salary and benefits. This smells like a scam from the word go. Flee!!!

  7. Adverts printed on photocopy paper and pinned on roadside poles or walls of buildings: The majority of such offers are scams with the target of the scammer being the application fees that are usually charged. They have a tendency of taking applicants through a series of interviews while demanding for payment at each level. Their fees are usually pocket friendly to the individual but because they tap into a very big pool of applicants, they earn lots.

  8. You’re called at odd hours: Professional recruiters are not likely to engage you outside working hours. When you are called say at 10pm in the evening, or on a sunday over a job opportunity, those are red flags already. Do not let your desperacy mask these red flags. Tread carefully.

  9. Abrupt change of interview location: A few years back, a young man called me and wanted directions to a place he’d been called to for an interview. He narrated to me how the recruiter had called him early in the morning and given him directions to an alternative location. A google maps search indicated that the new interview location was in a very questionable neighbourhood. I advised him to abort the trip. This young man probably survived being robbed or even a kidnap. The moral of this story is that never proceed for an interview whose venue has been altered at the last minute.

  10. Interview Location: What does it look like? Is it the kind of place that inspires confidence? Is it an established office that you are likely to find if you returned after a month? A while back, there was a story of a young lady who went for an interview which was conducted in a home. Unfortunately, she was raped in the process. Be on the look out, avoid being led like a stray sheep, you just never know the motives of the recruiter.

  11. Smooth Talking: When confronted with a smooth talking recruiter, do not allow to be swayed by their talk, there-in lies their trump card. They usually string up a series of lies that easily give you a false sense of comfort. Just ensure that you do not abandon your sense of basic reasoning as you interact with them and do not be shy to ask the tough questions, even when they might create some discomfort.

  12. Secrecy: When a job offer presented to you demands that you keep its details a secret, run immediately if you can. Crooks usually in an effort to keep their illicit activities under wraps tend to utilise secrecy as a weapon. By the time you realise you’ve been ripped off, they have disappeared and can hardly be traced. This might have been the case with the Java House applicants.

Take great care as you look for that job opportunity.

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda.

Follow @wirejames on Twitter.

Email lunghabo (at) gmail (dot) com

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