Africa Will Set the Pace for Bitcoin Adoption
5 Reasons why African will set the pace for Bitcoin adaption
By: SA Shares
Africa's interest in the currency is not translating into real-life use, and there are many reasons why not.
Crypto experts are noticing something that could change this current state of cryptocurrency and economists predict that these currencies will be the next big economic innovation that will have a positive disruptive influence.
The advantages that Africans will experience are the reason why widespread adoption of Bitcoin is a likely reality.
1. Pegged against the dollar
Even the strongest currencies in Africa struggle against the US dollar, the primary currency in which Bitcoin is traded. The Rand, in particular, is struggling more than ever, depreciating as the country tries to solve current economic woes by creating more. Many Africans are looking for a way to add more value to their money and by converting cash into cryptocurrency, or taking the extra step and mining it themselves, they can do that.
2. Instant payment between people
Awaiting payment slows down businesses and some of the biggest Banks in Africa have a delayed payment protocol while they offer instant payment at an additional cost. Instant payment benefits the payer and the payee and with cryptocurrency, this aspect is greatly beneficial to e-commerce in particular, which in emerging economies can go a long way towards encouraging entrepreneurship.
3. Secure encrypted wallets
More than 2 million people already have a secure Bitcoin wallet, which means there are 2 million people ready to trade. Unlike the risks involved with cash and card transactions, not to mention the limiting geographical distances associated with these kinds of transactions, Bitcoin and other cryptocurrencies are safe to transact with and cannot be stolen or lost.
4. Bitcoin is fast becoming a part of many stock and wealth portfolios
Bitcoin and similar currencies are being used by all kinds of traders to diversify their portfolios and in most cases, they are enjoying a fairly good return on investments. For many traders, Bitcoin has become an investment alternative as it generally does pretty well and despite a few bumps over the years, it generally remains profitable. Global Stocks hasn't outperformed bitcoin in 10 years.
5. Africa already uses instant mobile payments
Africans are no strangers to mobile currencies, which are just one step away from cryptocurrencies. Zimbabweans use EcoCash for just about all their payment needs, continuing to buy and sell even though the country's currency has collapsed. The framework is for the most part already in place for cryptocurrency to swoop in and make its mark.
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Page Updated Last on: Nov 26, 2019