In Africa, Bitcoin’s popularity continues to soar. The crypto-currency market offers Africans the means to take control of their financial destiny. The buying and selling of Bitcoin in Africa continues to grow at a remarkable rate.

The majority of digital currency activity may take place in Asia, but this is mainly due to speculation and investment. While Africa is proving to be an active center for the trading of crypto-money, especially Bitcoin.

There are very compelling reasons why people in Nigeria, Ghana, Zimbabwe and other African countries have been eager to accept crypto currencies. One of these reasons is that Bitcoin offers financial stability in a region known for its volatile and inflationary national currencies.

Africans convert their savings into crypto to protect their wealth against hyperinflation. The Nigerian currency, Naira, has lost 90% of its value against the USD and EUR in the last two years alone. Meanwhile, Bitcoin grew by over 1,000% in 2017.

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Another reason why the buying and selling of Bitcoin in Africa has become so popular is that crypto-money allows unprecedented economic opportunities. Sellers can sell their goods and services to a global audience, and be paid in Bitcoin, which, despite its recent volatility, is much more stable than most of the continent’s sovereign currencies. The opportunity to participate in the global online economy brings additional benefits because successful entrepreneurs can then hire more employees, helping to stimulate the local economy.

This opportunity to participate in a global financial market can take many forms. Thanks to the use of cryptocurrency, Africans can open their Bitcoin portfolios, and invest in companies around the world. Even a small amount of BTC allows a person to buy tokens during an ICO that could eventually be worth much more. A person living in the smallest colony in Ghana or Nigeria, could still be an active investor in fintech startups located across the globe by simply using a smartphone and his Bitcoin portfolio.

Another major reason why buying Bitcoin in Africa has become so popular is that it allows individuals to escape restrictive banking regulations. Banks in Nigeria limit a person to only be able to spend $100 a month on online purchases. However, people with Bitcoin portfolios can bypass such measures. The decentralized, peer-to-peer aspect of cryptomoney allows people to reclaim their economic freedom in their own hands and from those of centralized institutions.

1 COMMENT

  1. There are loads of misrepresentations in this article and quite frankly falsehoods.

    1. The limit on cards spending in Nigeria is between $1000 and $2000 for over a year now, not the $100 you claimed.
    https://leadership.ng/2017/07/20/uba-raises-customers-spending-limit-naira-cards-2000/

    And yes, I bought some BTC for international payments some days ago to avoid the cumbersome process of applying for FX to out-transfer. But not because of a spending limit of $100 that you wrongly portray.

    2.You claimed ” which, despite its recent volatility, is much more stable than most of the continent’s sovereign currencies.”
    This is stretching it too far. There are 54 countries in Africa. Less than 10 had any serious currency volatilities in the past 3 years. Chiefly Nigeria and Egypt. Zimbabwe’s problem has always been there. Claiming “most” is just a form of misinformation to your readers and make your article seem relevant.

    3. Again “Africans convert their savings into crypto to protect their wealth against hyperinflation. The Nigerian currency, Naira, has lost 90% of its value against the USD and EUR in the last two years alone. Meanwhile, Bitcoin grew by over 1,000% in 2017”.
    Another foul play of information. Nigeria is not Africa. The generalizations are not in your readers’ interests. There are less than 20% of African countries with currency inflations in the past 3 years. Indeed the naira lost 90% of it’s value to the USD, but BTC is the last place any Nigerian will go to protect their currencies from inflation and instability. As at time of this typing, from the peak of 16k in January, it has lost over 50% of its value.

    Why hide these facts?

    The writer is a strong advocate of BTC in Africa but not for the reasons you voice above. It is for the reasons that it is an independent alternative means of transacting with others around the globe without the sluggish pace of traditional banks and government restrictions. And it comes at lower charges. And to a great degree, secure!

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