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Regular Contributor
Posts: 498

Bitcoin in South Africa

[ Edited ]

So I took the plunge yesterday afternoon and baught R5k worth of Bitcoin. The butterflies have been fluttering in my stomach ever since. I have these visions of early retirement in a few months as I strike it rich on the current gold rush.

 

On a serious note though, I could not deny the fact that over the past 11 months, Bitcoin has increased from R12000 - R165700.  Had I rejected the advise of the doomsday profits, my R5k would have been worth R69500 today. NOT BAD! Of course had I put R5k in in 2009 when a Bitcoin cost R7.20 I would have  been worth R115 million today.

 

I am sure that at some point there will be a major market correction at which point many people will loose great fortunes. For now, I have invested a comfortable amount that I could loose without having to sell my house. If I make some money, it would be more that I had yesterday which is a bonus.

 

For those who do not know how to get into Bitcoin in South Africa, it was a lot simpler than I thought. There are 2 Bitcoin Exchanges on SA

These sites allow you to register an online Wallet. You then load money into your wallet (Good old ZAR rand) with which you then buy either Bitcoin or Ethereum which are the 2 biggest coins around.

 

I chose Luno due to some advise from a friend who had already purchased some BTC. They have a nice simple smartphone app. When loading money into my wallet, the option was EFT via all the major SA banks. In my case I used their FNB account to do the transfer from my own Internet Banking login. On their site it said that funds could take up to 48 hours to reflect, but it was there in no more than 5 minutes. I then clicked on Buy under the Bitcoin tab, entered the ZAR amount and bang, I had a fraction of a bitcoin.

 

Since then, I have been able to watch the fluctuating price and see a Rand value of my Bitcoin. I can say that so far I have not made any money. In fact, I am about R100 down. My outlook on this is 'Set and Forget' and take a long term view on this. I know people who are trading in many many different coins, setting up buy and sell alerts and basically chasing the dragon. This would do my head in.

 

Good Luck, and share your experiences and tips on this thread

 

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Community Manager
Community Manager
Posts: 139

Re: Bitcoin in South Africa

I would love to know if anyone on the Community is doing Cryptocurrency mining?

 

 

 

 

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Regular Contributor
Posts: 498

Re: Bitcoin in South Africa

An update on my initial Investment.

 

As of today (2 weeks after buying my BTC) the value of my initial R5000 investment is now R7855. That's right, an increase of R2855 or almost 60%.

 

I cannot lie and say that it was smooth sailing. It is very volatile, and I have had to have discipline not to sell out and cut my losses. My perseverance has paid off though, because as fast as it dropped R1500 the one day it recovered and kept growing.

 

I am now looking at adding some Ethereum to my portfolio. Ethereum shows huge promise as a platform to do smart contracts on. These contracts are fraud proof and have the potential to revolutionize many industries. A small recent example of a smart contract was CryptoKitties. These were tokens on the Ethereum Blockchain where you could create and breed digital kittens. The hope is that early kittens or rare kittens grew in value as a collectors item. The ultimate value was the demonstration of the Blockchain's abilities and how it handles mass scale transactions. In future you may see examples of Ethereum being used as a means of selling property, tracking assets and many others.

 

As for mining CryptoCurrency... I think we are all to late to the Bitcoin Mining circus. These days you need very specialized mining chips called "ASICS". Most mining now takes place in China using huge data centres of ASICS chips and a ready supply of cheap electricity.

There are coins that you can still mine with a CPU or GPU. Yesterday I installed Ubuntu on an old i5 PC and installed XMR-STAK to mine a Crypto called Minero. You are rewarded for the amount of Hash power you contribute to a mining pool. For this old PC using 3 Cores I managed an average of 150H/s (Hash per second). Over a period of 24 hours I was rewarded with about 0.001 XMR (Minero) which equated to about $0.31 or R4.50. BAsed on the electricity I used for a full day, this is not worth my while :-( but maybe you have a few more machines lying around, or even a Mining rig that you built with a few GPU's. You can now direct these to something like Minero or Litecoin. Once earned you can always transfer these to Bitcoin or Ether.

 

 

 

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