When it comes to places in the world which are right for Bitcoin, Africa may not be the first area which springs to mind. But it is indeed perfect for the leading cryptocurrency on the planet right now. Bitcoin, which is the original and still the favored crypto for most, has found a home in many countries within Africa, and here’s why;
Africa, to begin with, was the perfect place for cryptos such as Bitcoin and the blockchain technology which supports it, as they both provide solutions to many of the continent’s problems. Local currencies are unstable, banking options are basic, and not everyone has access to the latter. Unemployment is also rife within the countries of Africa, but thanks to Bitcoin, new jobs have been created.
While there were concerns over cryptos being used for illegal or immoral transactions, it seems that more and more African countries are now embracing the positives of digital currencies, as they certainly outweigh the negatives. Blockchain technology is already being put to work in counties on the continent, with transaction speeds being increased tenfold as a result.
There are already cases of Bitcoin ATMs being up and running in Africa too, with the likes of South Africa and Zimbabwe being the first to adopt this new technology. Bitcoin mining is also proving very popular in Africa, with it being the main source of income for many people living within countries on the continent. Many new startups in Africa are reported to have been funded through Bitcoin mining too, proving the cryptocurrency to be excellent for the economy. Furthermore, it is quite noticeable the number of reputable companies offering robust and secure bitcoin wallets, such as Luno, a brand with in excess of two million members based throughout the world.
With so many countries in Africa, some are further down the line and more accepting of Bitcoin than others, that’s for sure. South Africa, in fact, is a global player in the crypto scene, with Bitcoin reported to be the most searched for in terms of interest on Google. There have been substantial increases when it comes to new Bitcoin users for the last few years in South Africa, with many of these new users setting out as traders. Bitcoin is also believed to have provided respite from the economic and political strife in the country too.
The unstable nature of many local currencies in Africa is one of the reasons the people of Nigeria have quickly embraced Bitcoin and everything that comes with it. There was a dollar shortage within Nigeria between 2016 and 2017, and this was very much the catalyst for change, with a lack of access to foreign exchange and inflation being key factors. By mid-August 2017, it was reported that Bitcoin trading had passed the 1-billion-naira mark, which was roughly $360 million at the time.
Africa and Bitcoin, in the eyes of most, are simply a great fit. Bitcoin and blockchain technology provides the solutions to many problems which are apparent within the countries of Africa. And this can only be seen as a good and positive thing, by both the citizens of said countries, and the governments too.