Blockchain Beyond Crypto? Kenya at a crossroads...

The Kenyan paradox: crypto skepticism in a digital economy

David Ndii, the economic advisor to Kenya's President, labeled cryptocurrency a scam and referred to it as a form of Deci—a pyramid or Ponzi schemea pyramid or Ponzi scheme that wiped out savings in Kenya in early 2000. My thoughts immediately drifted to Maxwell Azzarello—a 37-year-old man who tragically set himself on fire in April 2024 during the unfolding of the President Trump trial in New York.

The Ponzi Manifesto papers on Substack still ring in my mind.

(read them here.)

In his words:

‘Cryptocurrency is our first planetary multi-trillion-dollar Ponzi scheme. It was expressly created for this purpose by a laundry list of rich and powerful people out of Stanford/Silicon Valley and Harvard/Facebook’.

‘It is a Ponzi scheme so large that it created global inflation, which is why the price of Bitcoin has been a remarkable leading indicator for inflation rates. Victims who bought crypto don’t realize their money has already been stolen, so the money gets double-counted by the victims and the criminals who stole it’.

@Ndii David posed questions on where cryptocurrency wealth can be seen and felt. (Tells a lot about where he hangs out).

Crypto and the technology:

AI, crypto, and blockchain are powerful tools that work well together. Blockchain, like a digital ledger, makes transactions secure and transparent, powering cryptocurrencies like Bitcoin. AI uses smart computers to analyze data, helping with things like predicting trends and automating tasks. When combined, they create a powerful duo. AI can make blockchain more efficient, while blockchain provides the trust and security AI needs. This partnership is driving innovation in fields like finance, healthcare, and energy, promising a future of greater efficiency and security.

Cryptocurrencies have captured the imagination of many, offering the promise of financial freedom and technological innovation. Their decentralized nature and potential to disrupt traditional financial systems have led to widespread adoption, particularly among younger generations. (Global transactions are now in the millies of a second.)

However, the allure of quick riches and speculative trading has also attracted a darker side, with numerous scams and fraudulent schemes exploiting the hype surrounding cryptocurrencies.

A Balanced Perspective:

Instead of outright dismissal, a more nuanced approach is necessary. While it's essential to acknowledge the risks, we should also recognize the potential benefits of blockchain technology:

While there are no official numbers on the adoption of cryptocurrency in Kenya, the African Bitcoin Conference happening in Nairobi raises an intriguing question: Isn't this in itself a sign of the growing number of people working with crypto in the country? The very fact that such a conference can be hosted suggests an emerging cryptocurrency ecosystem, despite the lack of comprehensive statistical data

Why did I change my mind about blockchain, Web 3 and AI?

My Transformation: From Skeptic to Cautious Observer of Blockchain, Web 3, and AI

My journey with emerging technologies has been one of constant reevaluation. Initially skeptical, I found myself gravitating towards a more nuanced understanding of blockchain, Web 3, and AI. This shift wasn't sudden but a gradual process of learning and observation.

The technological landscape is evolving at an unprecedented pace. What once seemed like abstract concepts are now tangible forces reshaping industries, communication, and economic systems. My background in digital marketing provided a uniquevantage point. I witnessed firsthand how digital platforms transformed from marginal tools to dominant communication channels. The trajectory of blockchain and AI reminds me of that earlier digital revolution.

As I got to understand the technology around blockchain that drives Bitcoin:

The decentralization: No single entity controls the entire network.

The Proof of Work: A consensus mechanism that ensures network security and validates transactions.

And of course the limited supply: With a cap of 21 million coins, Bitcoin introduces scarcity into the digital monetary system, which sort of made me think about the opportunities rather than the downside of the technology.

We then have a global shift; the data on the largest holders of Bitcoin and the technology around Bitcoin should be something as a country we may need to think about.

Largest owners of Bitcoin

Bitcoin ownership presents a unique landscape of transparency and pseudonymity. While Bitcoin addresses are publicly visible on the blockchain, the identities behind these addresses remain largely anonymous. This creates an intriguing ecosystem where large holdings can be tracked, yet the owners can maintain a degree of privacy.

The global landscape of Bitcoin ownership reveals some interesting patterns. The United States government has emerged as a significant holder, often acquiring Bitcoin through asset seizures from criminal investigations. El Salvador stands out as a unique case, having adopted Bitcoin as legal tender and developing a notable mining presence, though not among the top holders globally. To the Skeptics: it could be too late but we could mine… good people, the sun in northern Kenya and the steam in Olkaria could have made us a wealthy nation able to pay the Loans that are crippling the nation and with a populace that doesnot want to know where money will come from…..

Public firms that own Bitcoin

Let me bring another angle to the argument about crypto being a Ponzi scheme.

Last week, I had the opportunity to list the tools I would need in 2025 to get my work rolling. A total of almost USD 3,300 (429,000 Kenyan shillings) would be needed to ensure a smooth workflow from my small bedroom office. This excludes Microsoft Office, Google, and Adobe—for which I've resorted to cracked versions to manage sky-high costs.

As I conducted some research, I discovered that local companies are paying millions, if not billions, in licensing fees for their backend needs. Meanwhile, AI has come to the forefront of many firms. Do many of us realize that AI started in the 1960s, even before most people knew what a computer looked like?

My point to Ndii and others is that the global system is quite rigged against local, traditional economic systems that were originally designed to subjugate the global population. We are now in a new era that will probably make inequalities worse but then again will make some people, communities, and nations quite wealthy from the new models of currency and transactions.

An old Story to drive the Point home

I often tell the story of my Google training. I started as a business executive for Royal Media Services and Kameme FM when Google invited a few people for digital marketing training in 2009. One of their key messages was that digital would not replace broadcast budgets. Now, within almost 15 years, digital has evolved to almost 70% of promotional and advertising work in many organizations.

I have barely understood the digital landscape, and now I must enroll in blockchain, Web 3, and AI courses—not just for marketing, but to understand their effects across all workplaces.

Am I angry? No, not really! Once you understand your place at home, work, and in the global space, you can look at how to work around rigged systems and create better opportunities.

To @Ndii and those stealthily fighting cryptocurrency: A few months ago, you would have found an ally in me. But with time, I've deserted that line of thought.

Pragmatism over skepticism

Take the case of El Salvador. Once they realized their potential, they approached cryptocurrency as an opportunity. They've mined approximately 5,300 bitcoins using their natural energy sources—about USD 530,000,000 if bitcoin trades at $100,000. That's roughly 6.9 billion Kenyan shillings. Subtract production and initial investment costs, and you're left with change that could potentially fund peacekeeping efforts in Haiti.

Remember when Wajakoya sought to legalize cannabis and was called all sorts of names? We as a country will sink deeper into economic problems if we aren't pragmatic about solutions for our struggling economy, and yes, there is crazy corruption, but then again, the country with all the loans taken by the previous regime needs to be quite creative on how to solve the money issue.

• Blockchain technology can help Kenya transform its government by creating a transparent, tamper-proof system that tracks public spending, eliminates ghost workers, and reduces corruption. By using advanced technologies like Ethereum and Hyperledger, the government can build trust with citizens through real-time tracking of budgets, public services, and infrastructure needs. This approach uses smart contracts and digital tools to make government operations more efficient, accountable, and visible to the public, potentially solving long-standing issues of mismanagement and lack of transparency.

Then again I am quietly reminded: We're essentially strumming out tunes on a guitar to a dead horse. Perhaps one article can help our besieged government. Then again, we're told they don't listen to anyone…

Shindwe!!!