Columnists

Forget land and invest in digital currencies

Some countries have concerns that digital currencies may be used to promote online black markets. FILE PHOTO | NMG
Some countries have concerns that digital currencies may be used to promote online black markets. FILE PHOTO | NMG 

Land in Kenya has been yielding abnormal returns over the past few years. But there is a new kid in the block with even higher returns: Digital currencies.

Barely a month ago, the value of the Bitcoin was $2,000. As I wrote this article last week, it was approaching $4,000. By now, it is perhaps a couple of points higher. This digital currency is the fastest growing asset of any kind in the world today.

A digital currency is in the category of what is popularly known as Internet money or electronic money. In most cases, the tech community refers to these currencies as cryptocurrencies or virtual currencies.

They are different from hard currency such as bank notes and coins, but they can be used like normal currency to buy goods and services. They operate more like mobile money and can be used just like the physical currency to settle any form of payments.