Bitcoin is a digital currency. The founder of Bitcoin is Satoshi Nakamoto who released this currency in 2009. It is a pear-to-pear transaction system. This cryptocurrency is popular for its decentralized and open-source features. However, cryptocurrency is the future of economic development. It will be the root of all financial transactions. Cryptocurrency trading is more profitable than other trading. Bitcoin is getting popular in Africa. The adaptation of Bitcoin in Africa is a great thing that is happening for the first time for them. In addition, you can buy Bitcoin in Namibia without any hassle. Anyway, today we will discuss the reason behind spreading Bitcoin across Africa.
Reason for Bitcoin revolution in Africa
Poverty: Poverty is a curse for a nation. The sub-Sahara territory has been suffering from poverty for a long time. They are going down and down for many reasons. Basically, the weather and environment of Africa are kind of rude for leading a happy life.
From the beginning of time, they have been living far away from civilization. In that case, they are spending a hard time getting back on the same track with other civilized countries. For the slow processing of their adaptations, poverty got them very badly. However, they are trying to fix the economical and financial infrastructure. Recently the evolution of Bitcoin has been popular in African countries. By trading Bitcoin, they are making real money for downward poverty.
Political imbalance: We all know that the political situation in Africa is not stable. Civil war and corruption make civilian life like hell. Due to the corruption of elite people and politicians, the government is becoming poor and unstable. Without proper governmental support, there will be no development.
That’s why Africa always remains vulnerable for investors. The development of a country depends on foreign investments. The more investment a country gets the more infrastructural improvement will be done. However, Africa has lost so many potential investments. So the economic growth of the continent stays low all the time. But recently they realize the importance of cryptocurrency. In fact, they are starting an adaptation of Bitcoin that helps them fix economical hardness.
Remittance: Working abroad is one of the best ways to earn money. Underdeveloped countries like African countries may use this way to boost the financial situation. In that case, many Nigerians are working abroad for economical support. But for the bad banking system, the remittance is not properly shifted to their homes.
In addition, the price for currency exchange and transaction fees is really high. That’s why they are always looking forward to a safe, cheap, and reliable transaction system. We know that Bitcoin does not need any permission or fee for crossing borders. Also, it is totally digitalized and untraceable. That’s why Bitcoin is becoming the best way of sending remittance to the home.
Economic instability: Africa has a low quantity of industrial development. Most of the people are living in rural areas with a poor lifestyle. Their main income source is agriculture. Though they don’t have enough energy sources and tools, they can’t produce enough crops for them.
That situation makes the economy unstable. There are also other related problems that force Africans to find powerful financial alternatives. And Bitcoin is capable of filling the economic instability.
Lack of income source: Africa continent has 54 countries. 42 of them are living under the poverty line. That is a huge amount of a poor economy. That is the main reason for foreign investors not to invest in Africa. The lack of investment is making it hard to create an income source.
So, people are using the internet to make money online through Bitcoin and other cryptocurrencies. Ghana, Nigeria, Kenya, and South Africa are making a huge contribution to the spreading of Bitcoin all over Africa.
Inflation: Inflation is another bad thing for economic development. According to the World Bank Kenya, Mozambique, Nigeria, Zambia, Ghana, and Zimbabwe are facing a painful inflation problem. On the other hand, inflation is only caused by unplanned money-making by authorities. However, inflation is hard to control for its liquidity.
But Bitcoin is an open-source online currency. In addition, no one is there to create unlimited coins. So there will be no inflation. That is also one of the main reasons Bitcoin is spreading in Africa.
Mobile Banking: Africa is the only continent that has a poor and broken banking system. They don’t even have a digital mobile banking system in some countries. In fact, nearly 80% of African don’t have a bank account. Moreover, MPesa is a mobile money platform that has been giving services in Kenya for the last couple of years.
And people like the concept of digital wallets rather than traditional banking. That is another reason for the huge Bitcoin adaptation in Africa.
Bottom Line
Cryptocurrencies are making transactions easy and reliable. Bitcoin is making a huge change in the digital wallet system. Though Bitcoin is not a physical wallet, people like virtual existence. African people are making good decisions by adopting cryptocurrency in their area. It will help them reduce poverty and improve their living style.