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Home Tech Bitcoin & The Struggle To Accept The Cryptocurrency In Africa

Bitcoin & The Struggle To Accept The Cryptocurrency In Africa

by Dennis Mathu
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Bitcoin! Bitcoin!! Bitcoin!!! How many times did I can call you? Why are you calling me like a typical African mother? Anyways, it is not your fault because you were once worth as much as $18,000 and you will undoubtedly bounce back. By the way, you definitely do not want to calculate this amount in an African currency! Mtchew!

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games.

Despite the fact that Bitcoin has become very popular across the world and you can buy bitcoin without any hassles, some parts of Africa and certain Africans are still struggling to accept bitcoin nor do they want to start the bitcoin discourse.

Just like the way the acceptance of the internet was laggard and later picked up, Bitcoin is likely to walk the same route. However, from the look of things, it may probably take longer.

Why do we say this? The number one reason is that Bitcoin is unregulated. You can buy and sell Bitcoin seamlessly. This is supposed to be an advantage…right? But for many Africans, it is not. It is very prone to fraud. It is easy to buy bitcoin and sell it, it is accepted by a number of ecommerce website and of course, you do not require billions to produce it.

For example, in South Africa recently, as much as $50 million may have been lost by an international group of investors after putting their money into a bitcoin investment group called BTC Global.

According to media reports, more than 27,500 people may have been impacted, with investors spread across South Africa, Australia and the U.S. among other areas. Some victims have reportedly claimed that they lost as much as $117,000 to the scheme. A report like this is always in favour of legal currency.

This has prompted several African governments to issue warnings to their citizens against investment in Bitcoin. Nigeria is a good example. These statements are issued because clearly, the government is yet to understand how to regulate and streamline bitcoin as an impregnable means of business transaction.

Also, the volatility of Bitcoin is contributing to this skepticism. At the fall of last year, Bitcoin tiptoed past $15,000 and today it’s about $1,000. This means if you invest in Bitcoin, you really need to be ready for huge losses and huge gains.

Ultimately, the lack of understanding of how Bitcoin works is a major setback for the cryptocurrency. A better understanding of how it works will go a long way in making Africans accept and embrace Bitcoin.

Bitcoin: The currency of the future

It is undeniable that quite a number of Africans are already trading in Bitcoin. The governments of different African countries only need to evolve ways to regulate it. This is because Bitcoin is the currency of the future. It is easy to buy and sell, it is accepted by a number of ecommerce website and of course, you do not require billions to produce it.

As such, whether we like it or not, Bitcoin will find its way to the continent. It will now be a matter of when the government is going to come in to regulate it so that they won’t be late. After all, many governments in Europe and America already recognizes it.

Hence, we can boldly conclude that whether we like it or not, Bitcoin has come to stay and Africans and African government will have no choice than just to embrace it.

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