Bitcoin is a digital currency that has been operating on the internet since 2009. With vulnerable economies, the asset finds a prominent place in Africa, a continent devastated by weak currencies.
Since the fiat currencies of several countries on the African continent are extremely devalued, the population is looking for alternatives. One of them is certainly the dollar, however, there is a shortage of currency in the countries of the region.
According to a survey of local analysts, small businesses have been the main sources of Bitcoin trading. This is because, when dealing with foreigners, the use of cryptocurrencies facilitates transactions and avoids exchange rates.
With great potential for use in Africa, Bitcoin finds space in small businesses and volume continues to rise
Bitcoin was created by Satoshi Nakamoto with an interest in facilitating global transactions. Working over the internet, Bitcoin would be considered the people's digital currency, according to its creator.
With a different operation from fiat currencies, which depend on the Central Bank, Bitcoin is the first decentralized in the world. And its potential is already being explored in a continent that has lacked financial innovations in recent years.
According to Reuters, African countries like Nigeria, for example, have seen a large adoption of Bitcoin. This is because, the local currency has undergone immense devaluation, which hinders business.
Another country neighboring Nigeria already sees the local currency register a loss of two thirds of the value. That is, with weak currencies, which do not meet the requirement of value reserve, coupled with a scarcity of dollars, Bitcoin has been the salvation of many Africans.
The biggest problem that analysts in the region still detect is that the lack of regulation attracts scammers. Despite this problem, Bitcoin continues to grow in volume across Africa.
Bitcoin and Africa enthusiast, Twitter CEO reiterates that currency is the only internet native
In late 2019, Twitter CEO Jack Dorsey spent a few months traveling across the African continent. Over there, Jack met many Bitcoin enthusiasts and was able to better understand the pains of the continent.
Upon leaving the continent, Jack Dorsey made it clear that Bitcoin has a big use case in Africa. That's because, with the population still suffering from wars, hunger, among others, the use of money is one of the problems that can be easily solved with Bitcoin.
In the last week, Jack talked to Reuters again, making his opinion on Bitcoin clear. For him, Bitcoin is the only native currency on the internet and that should not change in the coming years.
For him the use of Bitcoin is easy and the fees, in relation to its efficiency, are cheap. That is, the CEO of Twitter, one of the most used social networks in the world today, advocates that Bitcoin be the internet's default currency.
Amazon recently released a documentary called Bitcoin on Africa, which shows the currency's application on the continent. The case is just more to highlight the immense potential of Bitcoin as a currency and its importance in ensuring financial freedom around the world.