Post
Topic
Board Economics
Re: Will Africa be a good place for crypto?
by
dengpei
on 26/08/2019, 16:03:44 UTC
The success of digital wallets in the African continent was really great and based on what I've read on news articles about it, it really helped the economy and the businesses when it all started years ago.
With this in mind, will Africans be welcoming of bitcoin/altcoin as a real currency and not just a quick way to earn cash or invest? Like using it as real money / cash?
Africa doesn't just need any other cryptocurrency out there, Africa needs a stable and dependable medium of exchange. Africa is a continent where governments still fall via coups and ''revolutions'' as in the case of the recent Arab Spring wave and the November 2017 coup against Robert Mugabe of Zimbabwe. Corruption and civil disorder is still rampant and is one of the key barriers to development. Economic Stability in Africa is an oasis enjoyed by a few countries. Currencies have been known to lose value in a whiff and people’s savings wiped in the wink of an eye.
Cryptocurrencies do offer a solution as an investment and savings haven in such cases but most cryptocurrencies that we use today such as Bitcoin and Ether have no underlying assets to back them. As a result of wild speculation, greed and lack of investment management experience people have lost out when they try to adopt and use them. This is evident in the collapse in prices and market capitalization of cryptocurrencies experienced in late 2018 as well as the emergence of scam ICOs that took investors’ money and ran exposed problems buried within the DNA of these coins and tokens.

I would bet on Facebook's Libra making it in Africa above all other cryptos because it promises to solve most of Africa's problems. I have previously written about how Libra is going to disrupt Africa in this article published by The Startup.