The African continent might not be the first to accept digital currencies. It, however, is a fertile ground for Bitcoin adoption. Since digital currencies gained ground in the world’s financial system, they have been used for many different purposes. Some are very beneficial while others are basically fraudulent acts. Well, irrespective of the many fraudulent activities that are associated with the use of digital currencies, they have continuously gained more acceptances by countries in Africa as well as investors of African origin. Some of the major reasons for the level of acceptability of virtual currencies in Africa are: investors in Africa are looking for means to avoid the issues that are associated with fiat money . They are also looking to gather the untouched value that informal markets offer to the economy.
Why is Africa a Fertile Ground for Bitcoin Adoption?
The amazing acceptance that Bitcoin, blockchain, and other cryptocurrencies enjoy in Africa has left a lot of cryptocurrency devotees amazed at how lots of third world countries are taking advantage of the blockchain technology. The acceptance of Bitcoin by Africa cuts across many countries in Africa. Popular among them are Kenya, South Africa, and Zimbabwe. Now, whilst there are lots of factors that are considered responsible for the huge interest of African countries in Bitcoin and other cryptocurrencies, one major factor that has played a key role in Africa being a fertile ground for Bitcoin adoption is Africa’s huge informal economy.
According to the International Labour Organization, Africa’s informal sector is responsible for over 66% of the employment opportunities in Sub-Saharan Africa. As it stands, one of the few established ways of growing the African informal economy is through the use of Bitcoin and Blockchian technology. This has therefore led many countries in Africa to embrace Bitcoin as well as blockchain technology.
Real Life Instances Which Show Africa’s Support for Bitcoin
Bitcoins have been in existence for less than a decade. Well, in spite of this, Bitcoin Automated Teller Machines are already in existence in some parts of Africa. At the moment, three African countries have installed Bitcoin ATMs. Two of those countries are South Africa and Zimbabwe. Also, there are some entrepreneurs in Kenya that are already into the mining of cryptocurrency as a means of funding their startups. Nigeria is also not left out of the Bitcoin trend. In January alone, the West Africa giant had an average weekly Bitcoin sale of $4.7 million.