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Why Is Bitcoin Becoming So Popular in Africa?

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Digital currencies are becoming a very popular option for people across the globe. As fiat currencies become more of a concern for people with rising deficits, there is a larger group of people who are enjoying the benefits of currencies like bitcoin.

Bitcoin is a currency that is being used across the globe. With its skyrocketing value, it is becoming a popular choice among many, especially those in Africa. In fact, it is becoming an extremely popular investment and form of payment on the contact for several reasons. This is being seen in a number of areas within the African society.

Online Bitcoin Casinos

One area that is seeing a sharp increase in usage are the bitcoin casinos. This is not just people using bitcoin to fund their accounts, but casinos specifically geared toward drawing customers using bitcoin as the preferred payment option.

The best bitcoin online casinos in Kenya are presented by bestcasinosites.net, where one can find casinos specifically catered toward digital currency users. While there are several casino sites across Africa that are accepting and catering toward bitcoin users, it is in Kenya where the phenomenon has grown rapidly. More Kenyans are using this form of digital currency, and casinos are responding in kind, ensuring that players can use this preferred method if they so choose.

Banking Industry

At first, banks were quite skeptical of bitcoin. In fact, the Central Bank of Kenya warned bitcoin users back in 2015 that they were using this digital currency at their “own peril.” Because of the anonymity and inability of the banking system to track and protect customers, the bank warned that people were putting their money at risk.

“Virtual currencies are traded in exchange platforms that tend to be unregulated all over the world. Consumers may therefore lose their money without having any legal redress in the event these exchanges collapse or close business. The public should therefore desist from transacting in Bitcoin and similar products,” the CBK concluded.

This is no longer the case. Not only are banks and Kenya amenable to digital currencies like bitcoin, but they are allowing customers to open accounts specifically catered toward those who wish to save or store their cryptocurrencies within the financial institutions. This is helping to promote confidence in using currencies like bitcoin, helping to drive the popularity of the digital currency.

Favorable Money Transfer Rates

One thing that will frequently deter people from any activity is when there are high fees and rates involved. It is the high interest rate on a home or car loan, the exorbitant fees for purchasing luxury items, or similar types of fees that will drive people away from purchasing things. They want to see value in their investment, and when excessive fees decrease the value, they shy away from them.

This is one area where bitcoin and other cryptocurrencies are becoming very popular because of their favorable transfer costs. In many instances, when people want to transfer money between banks, it can become a nightmare. Not only are there exorbitant costs involved, but delays can lead to people waiting for days before the transfer is completed. This is especially true when transfers are occurring between countries.

For those using bitcoin, transactions happen instantaneously. Not only is a person able to deposit or withdraw money quickly, but they are able to transfer it to a friend, family member, for business quickly, and the rates involved for transfers are quite well. This has helped to spur more people across the continent to opt to make transactions using bitcoin.

Avoid Government Regulation

One of the primary reasons why bitcoin has become so popular as a form of currency in Africa is because it removes government regulation. These currencies are anonymous, meaning that there is no supervising authority that is involved in regulating transfers, monitoring accounts, or taking action in ways that are normally seen in financial institutions.

Bitcoin and other forms of cryptocurrency do not have a “paper trail” as banks and other financial institutions have, so a person is able to conduct business without worrying about governmental regulation. This includes taxes, which is one of the primary reasons why people like receiving bitcoin. They know that all of the money that they receive is going to go to them, and they are not going to lose a portion of this outside of the transfer fees involved.

Besides taxes, there is often regulation involved in transferring currency from one country to another. A person may find that there is a lot of bureaucracy in sending money from South Africa to Kenya or from Kenya to Nigeria, but all of this is avoided by using bitcoin. Because there is no regulating agency in either country, a person is able to easily transfer this money to another as long as both individuals have a cryptocurrency account.

This becomes a great method for a person who wishes to transfer money to a relative in another country. Some go to another country to work but still have family back in their country of origin. They wish to send money to their family members, but often are caught in bureaucratic red tape or are forced to pay taxes and fees that substantially reduce the amount of money they are able to send. This problem is resolved when a person uses bitcoin, as all but the small transaction fee is received by the family member.

Plus, these transactions can occur anonymously. If a person is looking to send money to another country and they do not want any kind of spotlight shined on the transfer, this is a great way to do so.

Businesses Receiving Bitcoin as Payment

All of this sounds great, but it would be useless if a person was not able to use their bitcoin. If they could not get the money out of their account, transferring it into the currency where they live, or they cannot make purchases using bitcoin, then it would serve no real purpose for them. Fortunately, this is not an issue at all.

More businesses are accepting cryptocurrencies as a valid form of payment. They recognize that this is a currency that has substantial value to it, so accepting it as an option is beneficial for them as well. The business can use that currency in many ways, so it is to their benefit to accept it as a valid form of payment.

This is not just true in casinos. There are:

  • retail stores
  • online businesses
  • restaurants
  • many, many more

People across Africa are also able to convert their bitcoin and other cryptocurrencies into cold hard cash. There are many businesses out there that will allow a person to convert some of their assets into the currency in the country where they reside. This allows them to have access to their money to be used in a variety of ways.

A Great Way to Travel

While all of this is beneficial to Africans in general, the one group of people who are benefiting most through bitcoin are travelers. When visiting another country, a person does not need to carry a large amount of cash or even credit cards with high limits. Instead, they are able to convert their bitcoin or other digital currency into the currency of where they are visiting or they can simply use their cryptocurrency to pay for hotel accommodations, restaurant costs, or purchases they wish to make at local retailers.

This is making traveling easier than ever, as people from all over the world are able to come to Africa without having to worry about having access to their funds. Plus, because of the lack of government interference, they can safely and discreetly make purchases without drawing attention from a government agency.

The Wave of the Future

The reality is that bitcoin is becoming an extremely popular method of payment and investment no matter where one lives. In Africa, this is becoming a market that is seeing the benefits of using this digital currency and are investing and using it in record numbers.

In South Africa alone, nearly $3 million in bitcoin was used in transactions in the month of March alone. While this is dwarfed by those in the United States and Canada, it is proving that people in Africa are seeing this as a great option for conducting business.

This is likely only going to become a more popular option. Because of significant government regulation in many countries and the fact that people wish to make purchases that they would rather keep anonymous, using bitcoin and other digital currencies is the perfect solution. Africa may be a small player in the digital currency market at this time, but there is no doubt that by the end of this decade that they will be one of the areas of the world where bitcoin and other cryptocurrencies are a major source of currency used.

About author

Editor at TechArena. I cover all things technology and review new gadgets as I get them. You can reach me on email: kaluka@techarena.co.ke
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