In Africa, the popularity of Bitcoin continues to skyrocket. The cryptocurrency marketplace is offering the means for Africans to take charge of their economic destiny. The buying and selling of Bitcoin in Africa has continued to grow at a remarkable rate.
It may be that the majority of cryptocurrency activity takes place in Asia, however this is mostly due to speculation and investment. Whereas Africa is proving to be an active hub for cryptocurrency trading, especially Bitcoin.
There are some very compelling reasons why people in Nigeria, Ghana, Zimbabwe, and other African nations have eagerly accepted cryptocurrencies. One such reason is that Bitcoin offers financial stability in a region known for it’s volatile and inflationary national currencies.
Africans are converting their savings into crypto to protect their wealth against hyperinflation. Nigeria’s fiat currency, Naira, has lost 90% of its value when compared to the USD and EUR in the past two years alone. Meanwhile, Bitcoin rose over 1,000% in 2017.
Another reason why buying and selling Bitcoin in Africa has become so popular is that the cryptocurrency allows for unprecedented economic opportunities. Vendors can sell their wares to a worldwide audience and be paid in Bitcoin, which, despite its recent volatility, is far more stable than many of the continent’s sovereign fiat currencies. The opportunity to take part in the global, online economy bears additional fruit as successful entrepreneurs can then hire more employees,which then helps boost the local economy.
This opportunity to take part in a global financial marketplace can take many forms. Through the use of cryptocurrency, Africans can open up their Bitcoin wallets and invest in ventures throughout the world. Even a small amount of BTC allows a person to buy tokens during an ICO that could eventually be worth far much more. A person living in the smallest settlement of Ghana or Nigeria could still be an active investor in fintech startups located on the opposite side of the globe by just using a smartphone and their Bitcoin wallet.
Another major reason why buying Bitcoin in Africa has become so popular is that it allows individuals to navigate around restrictive banking regulations. Banks in Nigeria limit a person to only being able to spend $100 a month for online purchases. However, people with Bitcoin wallets can circumvent such draconian measures. The decentralized, peer-to-peer aspect of cryptocurrency allows people to take their economic freedom back into their own hands and out of those of centralized institutions.