Cryptocurrency is indeed a global phenomenon. Although most of the coverage has been focused on the Western and Asian markets, there is no corner of the world where cryptocurrency has not reached. In Africa, Bitcoin is all the rage. Yet very few news outlets cover the enthusiasm and the many projects being started in Africa as a result of blockchain technology.
Africa might overtake other countries
A technology and business journalist by the name of Rakesh Sharma said in an interview with The New Times:
Africa is rarely mentioned among the largest markets for cryptocurrency, but it may be set to steal a march over other markets.
Sharma says there is more than one reason for this enthusiasm, but that the high inflation in many African countries is definitely an important factor. Because many African countries have very hurtful central bank policies, the general population is very warm to the idea of having a decentralized monetary system they can rely on.
According to the World Bank, South Sudan had an inflation rate of over 100% in 2016-2017, which is not good for any economy. South Sudan is not alone, however. Among the other African countries with high inflation rates are Zambia, Zimbabwe, Mozambique, Egypt, Malawi, Nigeria, and Ghana. Coincidentally, these countries are the ones with the strongest enthusiasm for Bitcoin and other cryptocurrencies.
These are the most Bitcoin-happy countries in Africa
Alongside the countries listed above, there are also a string of other African countries in which Bitcoin thrives. Gobitcoin.io is a website dedicated to spreading the news about cryptocurrency in Africa and has identified South Africa, Kenya, and Botswana as three other countries where cryptocurrency could be the future.
Poor decisions by the African banking systems are helping to fuel the enthusiasm. Three years ago, Zimbabwe saw a huge spike in inflation that forced the central bank to print even more money in order to counter the inflation. However, many Zimbabweans chose to turn to Bitcoin instead, as they found this monetary system to be much more reliable despite the volatility.
Mobile phones will grow the trend
The number of Africans who own a mobile phone is growing rapidly, and this will lead to an increased interest in trading with cryptocurrency. The GSM Association reports that in just two years, African will have over 725 million mobile phone subscribers. This means that more and more people in Africa will have the tools needed to plug into the crypto-sphere.
Peace Akware is a young man from Uganda, and he recently told the BBC in an interview:
I check my Bitcoin every day [on my mobile phone] and any chance I can get. Any minute, any hour, anytime, as often as I can
One of the other main reasons why the cryptocurrency trend is spreading so quickly on the African continent is that the governments, unlike Western and Asian governments, are currently not regulating the use of it. This has seen fifteen cryptocurrency related companies, such as the Luno Exchange, has openened up shop in Africa just in the past year alone.