Is Cryptocurrency the Answer to Africa's Problems?

Is Cryptocurrency the Answer to Africa's Problems?
2 April 2021
Content from our Premium Partner
AllAfrica InfoWire (Washington, DC)

Who doesn’t wish to make money? In fact lots of money or at least much higher than these traditional money-making sources can? You might be scratching your head thinking if that's possible anyway. This was the same reaction of Africans who were desperately seeking solutions to their miserable poverty and other economic crises.

Not only Bitcoin, but other cryptocurrencies have shown skyrocketing prices in their values since 2009 and their excessive use in Africa has done wonders in the huge continent. Africa has a long history of weak and broken economies that have affected its financial state for years. From the underdeveloped infrastructure to the lack of financial investors, numerous reasons have girded Africa into a myriad of problems.

African’s weak financial system has always failed to provide the citizens with basic necessities and other facilities like other countries. But, the helpful use of cryptocurrency has been a true savior for the poor continent and answer to many of their problems. Here is how:

  • The unsystematic and poor governance of Africa has always kept bank and monetary systems extremely restricted and taxable. That is why people of Africa have always felt it troublesome to use their banking system and make payments by paying high taxes and other unnecessary costs. But, cryptocurrency being a tax-free and independent method to send and receive payment doesn’t require high taxes unless you have to trade or exchange it for earning profits. Moreover, platforms like https://britishbitcoinprofit.org/ have made the trading a lot easier.
  • Among all the flourishing global currencies, the African economy has always had a bad reputation due to the recurrent fluctuations forced by their government. A clear example supporting this statement is the massive economic disparity between the sub-Saharan economies and other regional economies of the continent. The recent decline in value of the African economy up to 50% affected nearly every small and large-scale business going on in Africa. But, cryptocurrency despite its high volatility has been comparatively stable and helpful to the real estate and stock market of the continent. 
  • African have struggled a lot in the past when it comes to international trading and foreign exchanges. The reason for this is the poorly built pricing system and lack of investors who can risk their money for the betterment of the country's overall economic condition. Africa also doesn’t have huge capital to fund the projects or spend money in different long-term investments to expect profitable returns in the future. While the effective use of cryptocurrency has lent a valuable helping hand to the investors for making assets and saving for the future. 
  • The sovereign debt is probably the most important factor that contributes to the continent's poor economy and massive financial crises. To solve the exaggerating problems, the continent has, unfortunately, dwell into the highly avoided pool of debts that also plays an immense role in causing hyperinflation in the continent. Here, countless enthusiast tech-savvy and risk-taking people of Africa started their cryptocurrency with a few dollars and today owns multiple real estate and luxuries in the continent. 
  • The looting and fraud culture is very common in Africa that often leads to people getting bankrupt or losing their hard-earned money. But, the replacement of traditional currency with digital currency has reduced this problem to a minimum level. Not only has this but the useful blockchain technology also enabled a mobile banking system in the country that has brought a clear paradigm shift from the country's inferior financial condition to a relatively progressive one.  

Conclusion:

In comparison to the flourishing global economy, Africa has always been miles back to be called a developed continent. In all this chaos, cryptocurrency serves as a tradable store of wealth that helped numerous entrepreneurs and strong investors establish their financial states. Gradually, the sudden unexpected rise in cryptocurrency has filled many inefficiencies of the African’s economy and list cryptocurrency as a global source of making money

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