Connect with us

Bitcoin

Could Bitcoin Become the First Pan-African Currency?

Published

on

Pan African Currency

Bitcoin is the world’s first truly global currency that anyone can use to make payments and transfer funds. In Africa, bitcoin has so far been growing primarily in South Africa, Kenya, Nigeria and Ghana and is currently being used mainly as an investment and for private international remittances. But does it have the potential to become the first pan-African currency?

Here are some reasons as to why people believe that Bitcoin, will be the leading global currency.

  • Anyone with Internet access can use bitcoin
  • Bitcoin is not controlled by any government or central bank
  • Payments and money transfers take less than 30 minutes
  • The cost of a bitcoin money transfers is minimal
  • Transactions are transparent as they are publicly recorded on the blockchain
  • There is a fixed supply of bitcoins, so hyperinflation cannot occur

Bitcoin remittances in Africa

While, in theory, bitcoin remittances make sense in Africa the reality is that there is the (partly) costly challenge of exchanging the received bitcoins into local African currency. For this reason, bitcoin remittances are currently not the cheapest way to remit funds into Africa, according to a report by US bank Citigroup. However, as exchanges are expanding and the bitcoin economy is growing in Africa, bid/offer spreads will tighten and bitcoin remittances will become a viable way to transfer money across borders at a low cost.

There will be an increase in money remitted to sub-Saharan Africa from people in the diaspora. Western Union and MoneyGram have been the main beneficiaries of it. This is one of the key reason why so many people in the bitcoin economy believe that bitcoin will succeed in Africa, as the costs of cryptocurrency-based remittances are substantially lower than using the before-mentioned expensive traditional Money TransferOperatorss (MTOs).

So far, consumer bitcoin remittances into Africa have only really taken place on a small scale as can be seen in the video by BitcoinFilm.org below. But as the bitcoin infrastructure improves in Africa, the trend for bitcoin remittances will undoubtedly be positive.

 

Bitcoin as a store of wealth and as a spending currency

Once bitcoin volatility reduces (which arguably will take quite some time) bitcoin will very likely become a viable store of wealth. Furthermore, as merchant adoption increase both globally and in Africa (as seen in South Africa), Africans will be able to use bitcoin as means of payment across the continent. The reality is, however, that it will take a substantially amount of time for this to occur.

In fact, bitcoin adoption correlates to some degree with Internet penetration in Africa. It is not surprising that the countries with the highest Internet penetration are also those spearheading bitcoin adoption on the continent. As affordable access to the Internet spreads in Africa, so will bitcoin as a store of wealth, a means to transfer money and as a spending currency.

To answer the question in the title of this article: YES, bitcoin could become the first pan-African currency. This could occur once internet penetration reaches the majority of the continent and global bitcoin adoptions increases, to the extent where it becomes globally recognized as legal tender. Whether that will happen or not, remains to be seen and, if it does, it will take a long time.

 

 

Continue Reading

Bitcoin

Crypto.com Introduces Crypto Earn and Crypto Credit

Published

on

Crypto.com

Cryptocurrency platform Crypto.com has introduced Crypto Earn and Crypto Credit to enable users to earn interest on their coins and borrow by using digital currency as collateral.

Crypto Earn And Crypto Credit

Crypto Earn is a financial product that allows users to earn as much as eight percent per annum in interest on their cryptoasset holdings.

Crypto.comTo do this, users deposit digital assets into Crypto Earn through the Crypto.com app and then begin accumulating interest each day through their preferred cryptocurrency. To get started with Crypto Earn, users will have bitcoin, Paxos, and TrueUSD to choose from, according to a company press release.

Crypto.com is offering users two fixed periods namely one-month and three-month terms to earn interest on digital assets. The company will soon provide users with a flexible holding term. With Crypto Earn, you can also withdraw and deposit coins at no fees and spend what you earn.

Crypto Credit gives users instant loans with bitcoin as collateral. Users are free from fixed repayment schedules, monthly fees, payment deadlines, and late fees which financial institutions such as banks often impose. Users, therefore, enjoy a flexible repayment schedule in the twelve months from the beginning of the credit term.

Furthermore, users owning MCO tokens staked in the app receive a special rate of eight percent per annum. Users can use their loans to buy more cryptocurrencies on the app or they can spend it on the MCO Visa Card with cash back of up to five percent.

Other benefits of using Crypto Credit are that you do not require credit checks and that you can get the credit limit you want.

“Crypto Earn offers the most attractive interest rates in the market today. With the MCO Visa Card and Crypto Credit, we are uniquely positioned to do it while maintaining sustainable unit economics. MCO Visa Card, Crypto Earn, and Crypto Credit together form a powerful product suite that nobody else in the industry has today. We have never been more excited about the potential of our platform and look forward to continue scaling it globally later this year,” said Kris Marszalek, co-founder and CEO of Crypto.com.

Continue Reading

Bitcoin

Different Kinds of Bitcoin Trading Strategies You Should Know About

Published

on

trading strategies you should know

Bitcoin has been around for over 10 years now. There are a lot of things that have evolved with it over the years, including how easy and secure it is to buy, the different ways we can buy it, and the various bitcoin trading strategies that people use now.

There are a lot of bitcoin trading strategies now that it could intimidate a lot of newbies trying to get into bitcoin. The truth is, each strategy caters to a specific kind of trader so if you’re new, these strategies might be worth looking into before you invest any kind of money.

Different Strategies

To help get you started on choosing the kind of strategy you’re looking for, here are the two most common strategies that bitcoin traders use:

HODLing

You may have seen this slang around while doing your research. “HODL” refers to holding your position. It was created in 2013 when bitcoin’s price was dropping but a certain user decided not to sell his shares. He meant to write “HOLDing” but ended up making a typo instead: “HODLing”. It eventually caught on and people decided to give it a new meaning: “Holding On for Dear Life.”

The HODLing strategy refers to the holding of your bitcoins in hopes that your investment will grow over time. To start HODLing, buy bitcoins in bulk when the price is low and then keep it close while watching the crypto market. People can hold their positions from weeks to months to even more than a year. It’s the easiest and one of the more common trading strategies.

Day-trading

BTCDay-trading is another very common form of trading in the bitcoin world. The strategy refers to closing all your positions before the day ends. It involves executing long and short trades to capitalize on the market price of that day. Basically, this prevents having open positions overnight by finishing all your trades within the day.

It’s a more technical form of trading and it requires your full attention and a lot of your time. You’ll need to keep a close eye on all your positions and possibly watch multiple screens to do so. It requires a high degree of focus as well as a good knowledge of how the crypto industry works.

Just getting started

These two trading strategies are literally the most common forms of trading. There are so many more strategies such as swing trading and alt-coin filipping that you’ll need to learn but these two should get you started on your bitcoin journey.

Now, all you’ll have to do is decide on which of the two suits you more. Be sure to figure out your game plan before getting into bitcoin at all and your style should follow.

This guest post was contributed by cryptocurrency education and news platform WeAreCryptos. 

Continue Reading

Bitcoin

Ghana’s Securities Exchange Commission (SEC) Warns Public About Investing in Crypto

Published

on

In a recent statement, the SEC of Ghana has warned the populace against investing in cryptocurrency and crypto-related investment schemes. This warning comes amidst a growing concern of the Security and Exchange Commission (SEC) about how Ghanaians are diving head first into the cryptocurrency market.

SEC Warns About Crypto

The Director General of the SEC, Rev. Daniel Ogbarmey Tetteh, signed an official statement released by the Commission that cautions the general public about cryptocurrency trading and all crypto-related activities as these are not regulated by the Securities Exchange Commission reports News Ghana

“[Cryptocurrency investments] offered by unregistered and unlicensed entities on digital online trading platforms with promises of high returns on investment are not sanctioned nor registered by the SEC”, the statement read.

The Commission’s statement further read:

Ghana SEC“The SEC wishes to inform the general and investing public that none of these cryptocurrencies is recognised as currency or legal tender in Ghana. The platform on which they are traded are not also licensed nor regulated by the SEC. The SEC would like to make it clear that it does not currently regulate these types of products offerings and their accompanying online trading platforms or Exchanges. Members of the general public who are investing or intend to invest in such currencies or assets may be doing so at their own risk and can in no way be protected under the Securities law regime in Ghana.”

Currently, digital asset trading remains a regulatory and legal grey area in the West African nation. Whereas the SEC has stated that it is presently not in support of or regulating cryptocurrencies, it also has not stated that cryptocurrency trading is illegal.

The regulator only mentions that they are “unregistered, unlicensed, and unregulated under the Securities Law of Ghana“. Thus, this can be very much regarded as a “disclaimer” on the part of the regulatory body to the public to sensitise them that trading in cryptocurrencies in the country presently is only done at one’s own risk.

Continue Reading

Bitcoin Price

Popular Posts