Africa is filled with stories of blood oil, blood diamond, and many other bloody mineral resources that have consumed the continent with greed, murder, and lust for more wealth. Amid these mineral resources craze, a new wealth quietly crept into the continent as cryptocurrency. To put it simply, cryptocurrency is a digital currency capable of serving as a means of exchange with a ledger system known as the blockchain maintained by individuals.
The economic revolution that many people are praying for in Africa has come in the form of mobile currency. While many people might think cryptocurrency is a fad, the currency is gradually getting its deserved recognition. Bitcoin alone has has a high value of about 31000 USD and may still increase in the future.
What is a cryptocurrency?
Cryptocurrency is virtual money that anyone can use in transacting business. We mean you can buy and sell with cryptocurrency. Today, Nigeria is the second country after the United States of America, where more people use more of this currency.
Cryptocurrency aims to eliminate middlemen, such as banks or credit card companies. The process is cheaper during money transfer and protected from any interference by governments.
Africa is a fertile ground for virtual money. The continent is well-positioned to handle the benefits of the cryptocurrency boom. We have a growing number of young professionals who are adaptable to changes in economic reforms.
The high unemployment rate in most countries offers young people an opportunity to explore otter ways of making money. People can start businesses, work for companies outside their countries, and make a living with this currency.
To avoid currency instability and hyperinflation, cryptocurrency can be a beacon of hope to many businesses. You do not worry about a country’s economy when you trade with cryptocurrency. For Africans living in the diaspora, this currency can be a life-saver. They can cut the bank charges they pay when bringing money home with this cryptocurrency.
Does cryptocurrency come with risks? Do not celebrate fast when it comes to trading with cryptocurrency in Africa. The nature of cryptocurrency simply means that prices can be volatile. In most African countries, virtual currencies are unregulated and the legal status of these currencies is unclear.
What this means cryptocurrency has no safety net when it comes to compensating for the loss of funds. If you must trade in cryptocurrency, you have to tread with caution. You should educate yourself about the currency before venturing into it.
Many people are misled because they lack education. What does the future hold? The good news is many countries are trying to embrace cryptocurrency, by creating laws that can help them make it legal.
Africa’s biggest economy Nigeria has the upper hand in the continent when it comes to using this currency. Kenya and South Africa are not far behind in this crypto business. While we may say that it is still early to predict how fast cryptocurrency can be adopted, there is no harm in giving it a trial.
In summary, you should not be greedy to join unverified platforms that promise mouth-watering percentages when you use them. Since the currency is relatively new and still testing the murky waters of Africa’s economy, you should be careful in using it for some type of business.