Why Cryptocurrency Market Seen As A Way of Transforming Africa

The rise in the value of the cryptocurrency market in the recent past is tempting to those who are double-minded on whether to join this cryptocurrency world or not. The valuation makes it hard to resist despite the fact that there are frauds on that field. Peace Akware in Kampala with her 30 years of age is a real dependent on the cryptocurrency market.

Just like any other person who has much interest in the market, one cannot separate Akware from her smartphone with her digital wallet. She accepts the fact that she keeps on checking her Bitcoin value every day and any other second she is free. Kampala is one of the African cities where finding a job is not an easy task, so the only alternative to the graduates is to hustle out for a living.

Akware had tried some ventures that have been failing before she even realized the fruits of it including the lending of money and selling of second-hand clothes. She, later on, decided to venture into bitcoin business. Akware bought Bitcoin worth more than $1000. The move is paying her back, and she is currently witnessing the value increase of her investment. Akware is optimistic that the value will rise further and make her own whatever she has been dreaming of like; building a home of her own, purchasing a car, and buying land among other things.

The business is not only for those who aspire to get rich quickly, but it’s also being embraced by some people as the safest way of value transfer. In places like Nairobi, Johannesburg, and Lagos which are seen as the African commercial hubs a handful number of people is using the Bitcoin to transfer value across the borders. Bitpesa is an example of the agencies that use Bitcoin as their medium of transferring money across the borders. The traditional money transfer companies like the Western Union has been much expensive given the fact that some transactions have to be made before the money reaches the intended destination.

Bitpesa only substitutes Bitcoin with the dollars since dollars have been seen as the standard currency away from the local currency. The process is cheaper, especially where there is a shortage of dollars, or there is a restriction on the usage of dollars. Bitpesa has been operational for four years now and had more than 6,000 customers within Africa. The Bitcoin has been helpful in countries like Nigeria. When the Nigerian government banned the usage of US dollars in the country sometimes back, Bitcoin came to the rescue of many businesses making it easier to transfer cash abroad which led to an increase in the cryptocurrency interest within the country.

Bitcoin has made it easier to store the value in African countries that have experienced economic and political instability like Zimbabwe. However, central banks in Nigeria, Uganda, and Kenya have warned its citizens on involvement in the cryptocurrency market. People have been warned to be keen on the increase in the valuation of Bitcoin since criminals can use the opportunity to steal from people. Joachim Ndhokero from Kampala Uganda is an example of those who have lost their money in the hands of criminals. He happened to lose more than $900 in around two hours. Before losing the money, he got a profit of $200 as a trap.

It’s not only the currency side of the cryptocurrency that which is of benefit. Neil Blazevic who happens to be a digital security expert says that blockchain technology that works on cryptocurrencies is the most vital innovation. The blockchain is a technology that is used to record data where one cannot interfere with already recorded data. The technology is of much help to land registers and lawyers apart from other departments that have to record data.

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Written by Denis Opudo

Am an engineer who's a tech blogger, hit me up on and we base our discussion on technology in Africa and the rest of the world.
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