Jeff Francis · March 25, 2018 · 7:00 pm
The popularity of Bitcoin in Africa continues to skyrocket. Paxful, the p2p cryptocurrency marketplace, is offering the means for Africans to take charge of their economic destiny.
The cryptocurrency revolution, spearheaded by Bitcoin, has intensified greatly over the last year. While pundits focus their attention on the markets of Asia and the United States, the buying and selling of Bitcoin in Africa has continued to grow at a remarkable rate. This is clearly understood by the peer-to-peer cryptocurrency exchange, Paxful, who offers Africans hundreds of options to either buy or sell the world’s most popular digital currency.
Cryptocurrency Popular in Africa
It is true that the bulk of cryptocurrency activity takes place in Asia, but this is mostly due to speculation and investment. However, Africa is proving itself to be an active hub for cryptocurrency trading, especially Bitcoin. An eye-opening $40,000,000 of buying and selling of Bitcoin in Africa takes place on a monthly basis upon the Paxful exchange.
In fact, a couple of African countries take two of the top three market spots on Paxful. The United States is number one, but Nigeria comes in at number two. Ghana takes the bronze by being the number three market.
People in Africa turn to Paxful in order to purchase cryptocurrencies on the peer-to-peer cryptocurrency exchange. One reason is that the exchange, unlike most others, is quite happy to do business in Africa. Paxful understands that many on the continent are unbanked and need access to the online economic marketplace. Another reason is that the exchange offers hundreds of methods for buying and selling Bitcoin in Africa, such as gift cards. In fact, the number one means for buying crypto on Paxful is through the use of iTunes gift cards.
Bitcoin Offers Stability and Opportunity
There are some very compelling reasons why people in Nigeria, Ghana, Zimbabwe, and other African nations have eagerly accepted cryptocurrencies. One such reason is that Bitcoin offers financial stability in a region that is not necessarily known for such. As Paxful co-founder Ray Youssef notes:
[Africans are] converting their savings into crypto to preserve their wealth from hyperinflation. Nigeria’s fiat currency, Naira, has lost 90% of its value when compared to the USD and EUR in the past two years alone. Meanwhile, Bitcoin rose over 1,000% in 2017.
Another reason why buying and selling Bitcoin in Africa has become so popular is that the cryptocurrency allows for unprecedented economic opportunities. Vendors can sell their wares to a worldwide audience and be paid in Bitcoin, which, despite its recent volatility, is far more stable than many of the continent’s sovereign fiat currencies. The opportunity to take part in the global, online economy bears additional fruit as successful entrepreneurs can then hire more employees,which then helps boost the local economy.
This opportunity to take part in a global financial marketplace can take many forms. Through the use of cryptocurrency, Africans can open up their Bitcoin wallets and invest in ventures throughout the world. Even a small amount of BTC allows a person to buy tokens during an ICO that could eventually be worth far much more. A person living in the smallest settlement of Ghana or Nigeria could still be an active investor in fintech startups located on the opposite side of the globe by just using a smartphone and their Paxful Bitcoin wallet.
One last reason why buying Bitcoin in Africa has become so popular is that it allows individuals to navigate around burdensome regulations that negatively impact their lives. For example, banks in Nigeria limit a person to only being able to spend $100 a month for online purchases. If you want something that costs more than a hundred dollars, then you’re out of luck. However, Paxful customers can use their Bitcoin wallets to circumvent such draconian measures. The decentralized, peer-to-peer aspect of cryptocurrency allows people to take their economic freedom back into their own hands and out of those of centralized institutions.
All in all, cryptocurrency is a lifeline that allows individuals an entry into an online, global marketplace and the ability to forge their own economic destiny. Paxful is extending that lifeline to the unbanked through the buying and selling of Bitcoin in Africa. While not as large as some other markets, cryptocurrency trading in Africa is robust and growing. Africans have seized upon Bitcoin as a means of economic stability as well as opening doors for entrepreneurship and investing in order to realize a better life.
What do you think about the opportunities offered by Bitcoin to Africans? Let us know in the comments below.
Images courtesy of Pexels, Pixabay, and Paxful.
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