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.
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.