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How To Travel Around Africa Using Bitcoin

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Travel around Africa using Bitcoin

Travelling within Africa using bitcoin has become easier as more businesses are adopting the cryptocurrency. In this guide, you will find all the most important travel service providers and merchants that allow you to pay in bitcoin during your travels around Africa.

Booking flights

Presently, a number of international travel sites have enabled bitcoin payment systems on their platforms. One such platform is the California-based CheapAir.com. The company has witnessed an upsurge in customers paying through bitcoin for travel bookings since integrating bitcoin payments on its platform in 2013. With over $15 million worth of bitcoin processed to date, the travel site hopes to extend the option to customers using the CheapAir iOS app for flight and hotel bookings.

Another flight booking option you can use is the Spanish travel service Destinia.com. The travel agent, which was the first to accept bitcoin payments, allows customers to purchase discounted tickets using the digital currency. The online booking process using bitcoin remains the same to any other payment method, with some customised features to make it user-friendly. You can book low-cost flights to South Africa on the travel site for example.

Alternatively, you can use BTCTtrip, a bitcoin-only travel site to purchase flight tickets to select African locations. The travel site offers special discounts for customers booking business class with bitcoins. ABitSky is another bitcoin only travel site where you can find cheap airline tickets to several African airports.

Booking Accommodation

Similar to online travel agents, several individual establishments and online platforms accept bitcoin as payment for accommodation. HOTELGO24 allows one to book hotel rooms using bitcoin. The platform is a favourite for cryptocurrency enthusiasts due to its 5 percent bitcoin cash-back of a reservation amount on a select number of hotels. You can search for a hotel in Africa among the 130,000 partner institutions listed on the platform.

Travel Africa using Bitcoin

An alternative is AccomoDirect, a South African online accommodation portal that accepts bitcoin payments. You can view its 20,000 listings as well as reviews across 2,000 unique African destinations. Accommodation listings on the platform are pre-verified to ensure their suitability. Booking payments are scrutinised and confirmations sent to guests.

Also offering online accommodation booking services is SafariWithUs, a South African tour company that organises accommodation for people on dream vacations or those seeking an African adventure. Customers can pay in bitcoin via the PayFast payment feature on their website and enjoy quality accommodation in South Africa, Mozambique, and Tanzania.

You can also use Travel sites such as CheapAir and Destinia, to book hotels or vacation homes across multiple locations in Africa, and pay for the reservations using bitcoin.

Transportation

Once you have found a place to stay, the next thing you may need is a way to move around. Luckily, popular travel sites CheapAir and Destinia, allow you to hire car rental services and pay for them in bitcoin. If you are visiting South Africa, you can hire a vehicle from cabscarhire.com, a bitcoin-friendly car rental service that has depots at all major airports and cities in the country. SafariWithUs, another bitcoin-enabled travel site also provides wildlife and ethical safari tours for guests.

Ashworth Africa is another South African tour company that specialises in setting up tailor-made tours for those planning Safari’s or enjoying a honeymoon. You can pay in bitcoins and start making travel plans with the help of their itineraries’ specialists to dream locations in Southern and Eastern Africa.

Food, Drinks, and Entertainment

Purchasing foods and drinks, not to mention enjoying relaxing night-outs, is highly dependent on which African country you are visiting. As a rule, countries with higher bitcoin adoption rates such as South Africa offer more in terms of online retailers and merchants who accept the digital currency.

For coffee lovers visiting South Africa, Cape Coffee beans is a good place to start. The online store caters to coffee enthusiasts in the country and accepts bitcoin payments. You can order freshly ground coffee beans from any artisanal roaster at affordable prices and have it delivered to you at any location within the country.

If you are looking for a wider selection of food and drink, South African retailer Checkout may be a perfect choice. The second place recipient of the ‘Good Practice Award 2015-2016’ has a network of 45 corporate stores across the country. Shoppers can pay for its affordable products using bitcoin. By using the store locator feature on the website, you can locate a store close to you.

Alexander Bar, Cafe & Theater, is a popular entertainment joint in the Cape Town area. Located on 76 Strand Street, the joint offers a unique entertainment experience with a cozy bar and intimate live performances. You can purchase drinks and snacks using bitcoin as you enjoy soothing jazz performances.

Alternatively, if there are no bitcoin-friendly food and hangout spots, you can always pay using a bitcoin debit card.

Buying Travel Gear

If you are looking to do some outdoor activities such as hiking or rock climbing, you can purchase gear beforehand using bitcoins on Amazon, through Purse.io. Purse.io enables customers to buy items at a discounted rate, such as backpacks, diving gear and more, by selecting them on Amazon and uploading them to the Purse.io platform. The platform then connects the user to someone who wants bitcoins and is willing to purchase the items on behalf of the user. The user will then receive the delivery and release the bitcoin to the other party in the transaction.

There are also some local bitcoin-friendly options one can consider such as ActionGear in South Africa. The former allows you to pay in bitcoin for a wide range of outdoor electronic equipment such as activity trackers, drones, cameras just to name a few.

Purchasing Gift Cards

You can use bitcoin to buy gift cards from Gyft.com and use them at several merchants in Africa. You can obtain gift cards for well-known establishments such as Domino’s, Burger King, Pizza, Starbucks as well as retailers like Nike and Addidas.

While travelling using bitcoin seems like a cheaper and hassle free experience, you have to remember bitcoin adoption in Africa is still marginally low. Therefore, it would be wise to have a bitcoin debit card on you if bitcoin is your preferred spending currency when you are on the road.

You can also check for more African merchants who accept bitcoin here.

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Nigeria’s Capital Markets Regulator to Create Framework for Cryptocurrency Regulation

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Framework for Cryptocurrency Regulation

Nigeria’s blockchain community and cryptocurrency exchanges could get a clear stance on the classification of cryptocurrencies from the country’s Securities and Exchange Commission (SEC) before the end of the year.

A Framework for Cryptocurrency Regulation Is Coming

According to a report by Pulse, the regulatory institution is set to implement the roadmap for the fintech industry as it pertains to its capital markets. According to the roadmap, between the last quarter of this year and the first quarter of 2020, the SEC is expected to:

  • Decide on its preferred classification of cryptocurrencies (either as commodities, securities or currency).
  • Develop a framework for the regulation of Virtual Financial Assets (VFAs) and VFA Exchanges.
  • Issue guidelines and standards for whitepapers and ICOs.
  • Develop a framework for KYC and due diligence for cryptocurrencies, Virtual Financial Assets, tokens, and ICOs.
  • Define clear classification for tokens based on their unique properties. They could be payment tokens, asset tokens, utility tokens or others.  

The Acting Director-General of the SEC, Mary Uduk, revealed at a Capital Markets Committee briefing last month that the Working Group to drive the implementation of the roadmap would be chaired by Adeolu Bajomo, the Vice-President of the Fintech Association of Nigeria. 

Cryptocurrencies as Commodities or Securities But Not as Currency

traderOne of the recommendations that stands out in the roadmap, which was prepared by a committee comprised of officials from the regulatory agencies, the private sector, and a member of the blockchain community, is for the SEC to recognise cryptocurrencies as commodities or securities, and not as a currency. This classification is expected to have tax implications for investors.

This recommendation is in line with the central bank’s directive last year, which stated that “virtual currencies” were not a legal tender.

Cryptocurrencies have lacked a single, definite identity. For example, Germany is treating them as money and means of payment while the US uses the Howey test to decide whether a cryptocurrency is a security or not.

Crypto Adoption in Nigeria

Citigroup, a US investment firm, reported in January 2018 that Nigerians were the third-largest holders of bitcoin as a percentage of gross domestic product (GDP). The use has ranged from ­trading to making fast, low-cost cross-border transactions, saving on the high fees taken by commercial banks and traditional money-transfer services.

Nigeria has a fast-growing young population with a significant chunk below the age of 35. But there is still a small number of people with access to the financial system. Less than 50 million people with bank accounts in a population of over 180 million. Blockchain applications could be a great way to onboard millions of underserved people into the financial system.

With the SEC expected to take responsibility for the regulation of cryptocurrencies in the country soon, we can foresee more scrutiny of Nigeria’s biggest crypto companies, which could lead to a more secure crypto trading ecosystem down the road. 

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Poor Financial Infrastructure? Why Ghanaians Need Crypto More Than Ever

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Ghanaians Need crypto

Ghanaian investors continue to face difficulties as the Bank of Ghana (BoG) continues to probe fund managers for mishandling funds. Is it time for one of the fastest-growing economies to look at cryptoassets for financial freedom?

A Three-Year-Old Banking Crisis 

Why Ghanaians Need BitcoinThe Ghanaian banking crisis started on August 14, 2017. The Bank of Ghana (BoG) revoked the licenses of UT Bank Ltd and Capital Bank Ltd and approved a Purchase and Assumption (P&A) transaction with GCB Bank Ltd that transferred all deposits and selected assets of the two banks after they were found to be insolvent.

The following year, the BoG subsequently revoked the universal banking licenses of five banks, including UniBank Ghana Limited, Construction Bank, Sovereign Bank, Royal Bank, and Beige Bank. Additionally, it issued a license to a newly created bank – Consolidated Bank Ghana Limited – which is wholly owned by the Government of Ghana.

After a tough time dealing with the aftermath of the shake-up in the banking sector, the BoG then proceeded with revoking the licenses of 23 insolvent savings and loans and finance house companies just weeks ago.

These happenings in the country’s financial sector have led to several issues in the world’s fastest-growing economy in 2019

A Time to Consider Cryptoassets?

With the current turbulences in the financial ecosystem in Ghana, one may raise the question: “Is it time for Ghanaians to consider cryptoassets as investments with real asset ownership and transparency?”

Bitcoin and other decentralised cryptocurrencies are a natural fit in situations like these. For investors and consumers to escape the uncertainty of such a disorganized space, they will have to hold assets that they directly control.

Cryptocurrencies allow users to own their assets and give them independence from regulated, mainstream and established systems. With cryptoassets, no financial institution is responsible for the safekeeping of your funds and, therefore, cannot mishandle your funds.

Unlike the current situation where thousands of Ghanaians are not sure of the future of their funds due to the changes in the financial sector over the last three years, cryptocurrency users always have control of their funds and can access them at any time.

Imagine a pregnant woman in Kumasi, Ghana who kept her money in a savings and loans institution ahead of giving birth to cater for the hospital bills but cannot access her funds and is now stuck in the hospital because the institution has been closed down.

If she held bitcoin instead, she could pay in BTC or easily exchange it to cedi, to pay her bills without any issues.

Growing Interest in Cryptoassets in Ghana

Perhaps, the point made above has already been registered in the minds of many in the country who have shown interest in cryptocurrencies, especially bitcoin.

bitcoin in ghana

Currently, Ghana sits at number three on the list of countries on Google Trends for the search keyword “bitcoin” and Accra sits at number two for the keyword “buy bitcoin“.

With a more deliberate effort to push education and adoption – like the BlockTech Women Conference Accra 2019 held last week – the existing interest in cryptocurrencies could translate into growing adoption that could disrupt the current financial system in the West African nation.

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Is Bitcoin Really A New ‘Safe Haven’ Asset?

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Safe Haven Asset

The launch of the Bitcoin blockchain in 2008 was a low-key affair among a fringe group of cryptography enthusiasts. Just over a decade later, the pioneer cryptocurrency is a world-famous phenomenon with a market value of about $10,000 at press time.

This is certainly a remarkable turnaround, which only the most ardent early supporters could envision. That said, bitcoin as a currency has taken a life of its own and is gaining rather sophisticated market functions. One of these is the emergence of Bitcoin as a possible ‘safe haven’ asset. How ready is bitcoin to perform this unique function? Let’s find out.

Bitcoin currently has a solid market presence. Moreover, a great number of retailers in the market, especially online, accept bitcoin payments. This means that bitcoin users can freely operate and trade which is a great leap forward.

Trading is efficient and simple because of modern exchanges where you can trade for USD, trade BTC-EURX or any major fiat and crypto trading pairs. Generally, bitcoin is now a currency and an asset you can freely own and transact with ease. At the moment, there are over 250,000 bitcoin transactions each day across the world.

Incidentally, some of bitcoin’s intrinsic factors have made it play a unique market function. For one, bitcoin is a finite currency. Unlike fiat which is freely printed by Central Banks, there will only ever be 21 million bitcoin. Whilst this has placed a ceiling on mass adoption as a currency, the finite virtue has made it an attractive proposition as an asset.

The Case for Bitcoin as A Safe Haven Asset

goldFor a historically volatile asset, bitcoin being discussed as a potential safe haven asset is remarkable. In years gone past, equity investors would regularly purchase gold during periods of market uncertainty to distribute risk. Gold is a traditional safe haven investment due to its scarcity and value. Can bitcoin take up such a role?

In the first few days of August 2019, stock markets went wild on fears of a USA-China trade war escalation. Simultaneously, bitcoin booked impressive gains of more than seven percent as opposed to the drops in the major stock markets. This is certainly not a fool-proof case for bitcoin as a safe asset. Regardless, crypto enthusiasts took the development with glee as part of a general argument for bitcoin’s status as a safe haven asset. The major arguments include:

  • Bitcoin is effectively immune to geopolitical tensions like the trade wars.
  • By virtue of decentralisation, bitcoin is independent of government monetary policy. This means that bitcoin prices are entirely market dependent. Accordingly, bitcoin (though significantly volatile) is attractive because it has no direct correlation to the volatility of other asset classes.
  • Bitcoin’s scarcity gives it innate value, like rare metals. Satoshi Nakamoto capped bitcoin supply at 21 million.

Potential Drawbacks

Is it that simple though? The fact that bitcoin has a life of its own is an impressive aspect of its position as an asset class. However, the case for bitcoin as a safe haven asset is not as straightforward as it may seem.

goldTraditional safe haven investments are usually boring. Gold, for all the credibility it has, has generated an average annualised return of 0.32 percent over the last five years. As a matter of fact, its value most of the time is relatively consistent. This would be fitting for the name ‘safe haven’ as it remains safe in the midst of market volatility.

However, bitcoin, even in the most generous terms, would be a ‘colorful’ safe haven. Bitcoin may have a value trajectory unique from the regular stock markets. However, this does not take away bitcoin’s volatility issues. Therefore, investors are as motivated to diversify risk in a volatile stock market as they are to cash in on potential outsize gains.

Taking prices from August 2018 to August 2019, bitcoin has appreciated more than 100 percent. This is certainly a very impressive return from an investment perspective. However, it does little to lend credence to the general idea of a ‘safe haven’ asset.

Moreover, bitcoin still has to navigate a number of regulatory challenges with global financial entities because to truly gain the status of a mainstream ‘safe-haven’, regulators like the SEC have to be on board. Additionally, the stability of the coin against hard forks and security of secondary players like exchanges can add to its credibility.

Is It a Safe Haven Asset?

From the aforementioned, you can look at it both ways. For an investor looking to distribute risk and have an asset class whose volatility does not correlate to mainstream asset volatility, bitcoin can act as a safe haven investment. However, it fails to live up to the classic role of a safe haven like gold in the market. Regardless, this debate will only intensify as bitcoin matures and grows further.

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