With politics and the pandemic, the African continent might be more likely to adopt Bitcoin than anticipated
Between the political situation and the COVID-19 pandemic spreading, the Africa continent is likely to accept Bitcoin more than anticipated. This is not a baseless prediction because, according to the CEO of the crypto exchange Yellow Card in Nigeria, cryptocurrencies are rapidly developing across Africa, especially in Nigeria, South Africa, Ghana, and Kenya.
Bitcoin can grow much more significant in Africa
In an interview, he shared that Bitcoin will continue to expand, moving across Africa:
“At this point, there’s just a matter of time before it continues to expand outward to the rest of the continent.”
Most Bitcoin transactions in Africa do not occur through official exchanges. Instead, Bitcoin and other cryptocurrencies are traded primarily via unofficial WhatsApp or Telegram or OTC channels.
He went on to say:
“The actual volume in Africa, I would estimate that it’s at least five to eight times higher than any actual volume number that you can find, just based on the amount of money that moves through these dark pools, essentially, through these Telegram and WhatsApp groups.”
According to Maurice, it is estimated that Nigeria and South Africa are among the top five countries for cryptocurrency users. He thinks that up to 10% of people in South Africa already own or currently hold Bitcoin.
Comparing the crypto-savvy African countries to the US, Maurice noted:
“In Nigeria and South Africa especially, created uniquely in that pretty much anyone you talk to has at least some base level of understanding of Bitcoin.”
Bitcoin can help solve the economic problems that African countries often face high inflation rates. Along with quick transactions and completely digital nature, Bitcoin provides a neat solution to the issues that some countries are fighting with the rapid devaluation of their national currencies, for example, the Zimbabwean dollar. Although Bitcoin is highly volatile, digital assets may be the replacement assets that developing nations will need.
Can BTC grow in South Africa?
When the economy in South Africa was disturbed by the COVID-19 pandemic and lockdown, the status of the national currency was not functional. Rand has weakened from a political front that is expected to lose significant value, which could force South Africans to look to other investments to diversify their assets and keep a healthy portfolio.
In it, Bitcoin is considered a potential alternative asset, with 7 005.45% ROI since its inception in 2013. Meanwhile, Rand has witnessed an incredible decline from the price of ZAR 9.11 to $ 1 transaction value in 2013 for 16.66 ZAR.
Investing in cryptocurrencies is potentially risky, but that also comes with the potential for high rewards. Given the trajectory of Bitcoin prices over the years, coupled with the fact that it seems to hold steady at this point, it may be worth considering South African investors consider adding cryptocurrencies to their portfolios.
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