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Twitter CEO Thinks Africa Will Decide the Future of Bitcoin

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future of bitcoin

The CEO of microblogging platform Twitter, Jack Dorsey, believes that Bitcoin’s future will be decided in Africa. The celebrity CEO has stood behind the first cryptocurrency over the years saying that it’s the only digital currency that has stood the test of time, gone through boom and bust cycles, and handled fierce criticism only to stay tenacious.

One of the recent tweets of Twitter CEO says that although the currency is seeing increased adoption in European countries, the future of bitcoin is in Africa. His opinion came at the end of his tour of Ghana and Nigeria. His tweet read:

Mr. Dorsey is convinced that Africa will play a crucial role in deciding bitcoin’s future success and he’s willing to stand by his words by promoting the currency in the region through tours and meet-ups. Earlier, he participated in a meet up in Ethiopia where ideas were exchanged about promoting bitcoin and the related services.

What Will Drive the Future of Bitcoin in Africa?

So, what are the factors that will drive cryptocurrency in Africa? According to the Twitter CEO, one of the largest continents is at a crossroads where economic turmoil, poverty issues, and lack of infrastructure development and financial opportunities are pushing people toward cryptocurrencies, and bitcoin is one of them. They are placing their trust in cryptocurrencies and blockchain to bypass government corruption and incompetence.

It is really interesting to note that Dorsey isn’t alone in this. There are other crypto celebrities who share his opinion including Nate Hindman, who is the head of growth at Bancor. Mr. Hindman is quite confident in cryptocurrency’s future in the African countries as he says:

“In emerging markets like Africa, the shallow reach of traditional money systems means there’s less resistance to new financial technology.”

Another nod of agreement comes from Ray Youssef, CEO of Paxful, which is a peer-to-peer marketplace for trading bitcoin. He says that we’re only noticing the growth now because we haven’t been paying attention.

Africa hasn’t gotten big into bitcoin suddenly. In fact, they’ve been using the currency for many years and not only that, but they’ve taught us a lot about the real-world use cases of bitcoin.

However, this development hasn’t come without its own challenges as cryptocurrency laws in African countries can be quite restrictive, especially in Nigeria. Ray Youssef says:

“We found a way for them to export an asset, which is gift cards, as a way to go around financial restrictions. Now, bitcoin is flooding out of Nigeria and into other African countries because of the ambition of the Nigerian bitcoin community and Paxful.”

Paxful has seen immense growth with a total of three million subscribers and almost half of them come from African countries and the subscriber base is growing at a rapid pace. According to the recent stats, Nigeria, US, and Ghana made over 15 million trades in the last year, which is 65% year-on-year growth.

And it’s not just Paxful that is witnessing amazing growth in Africa. Binance also launched a new service by the name of Binance Uganda, where citizens can purchase bitcoin directly with their fiat currency. This step is helping the country to gain access to crypto markets, improve liquidity and increase the foothold of cryptocurrency trading in Africa. Belfrics is another exchange that’s offering its trading services in Tanzania, Nigeria, and Kenya.

Having said that, the growth of the cryptocurrency industry in the continent is also going to depend on the legislation and regulations around crypto trading. Just like online gambling, as in NCAAF college games betting, cryptocurrencies must be legislated and done responsibly, putting the trust into consumers.

If reigning governments don’t decide to be intrusive and keep the markets open, cryptocurrencies, including bitcoin, are going to play a massive role in the economic growth of African countries, and the prediction of Jack Dorsey may come true.

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Luno Wants to Help Resolve Nigeria’s Crypto Ban

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Nigeria Crypto Ban

Following the Central Bank of Nigeria’s directive prohibiting regulated banks from facilitating payments for crypto exchanges, Luno has responded with a request for dialogue. According to a recent statement, Luno has said it would like to work with the Central Bank of Nigeria (CBN) and other regulators in Nigeria “to create an open dialogue and to come to a solution that works for everyone.

Who is the Loser of the CBN Crypto Ban?

While it is not exactly clear why CBN executed the ban, some believe the regulator was trying to protect consumers from potential losses in the highly volatile digital asset markets while some suspect it has more to do with trying to protect the weakening naira.

Either way, Nigerians are more likely to lose than gain from this ban. For instance, crypto traders that have been relying on banks as a payment method now have to look for other alternatives, which are probably not as effective. Still, Nigerians are not afraid to circumvent the ban.

“It is going to be around a couple of days or a week to circumvent this policy. We do not necessarily have to use banks, and at the end of the day, it is the banks’ loss,” Enogieru Osasenaga, a Nigerian businessman that uses crypto to procure goods online, told DW last month.

Amidst a weakening Naira, Nigerians have been turning to bitcoin to import goods because they cannot buy dollars. Dollar liquidity in the country has plummeted after oil prices dropped due to the COVID-19 pandemic.

According to Luno, the directive is not protecting Nigerians.

“It holds them back and leaves them vulnerable. [The ban] prevents honest Nigerians from taking advantage of all that cryptocurrency has to offer them. Also, it leaves the regulators at a disadvantage. Blanket bans push people “underground” [i.e. trading via Whatsapp or Telegram groups, for example]. This makes activity involving transparency less transparent and means financial bodies have less visibility of what is going on,” Luno said.

A Choking Regulatory Environment

The recent ban is likely to increase the number of informal businesses in the country. According to economist Shuaibu Idris, billions of dollars are in circulation in Nigeria without the government’s knowledge. This situation could worsen as the government continues to tighten its financial laws.

Furthermore, Nigerian banks have been restricting the amount customers can spend abroad with a debit card. Local banks are also impeding transactions with hard currency, limiting customers to withdraw amounts less than $100.

In such an environment, doing business is not only difficult but also frustrating. Moreover, the government will be losing any revenues it was making from businesspeople like Osasenaga.

Can We Talk?

Judging from the regulator’s pragmatic approach to cryptocurrencies, Luno is confident that the country can resolve the issue soon. The SEC in Nigeria, for example, is set to regulate crypto trading in the country.

LunoIn the past, Luno has cooperated with regulators in Malaysia to become the first licensed exchange in the country. “This has created an inclusive and transparent cryptocurrency ecosystem in the country, making it easier for consumers and regulators alike,” Luno explained.

“We would like to work with CBN and regulators in Nigeria as we have in other countries, to create an open dialogue and come to a solution that works for everyone,” a company spokesperson concluded.

Luno has more than three million Nigerian customers, who could all benefit from a quick resolution.

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What Happened to “Bitconnect Guy” Carlos Matos?

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Carlos Matos

You might recognise Carlos Matos from the famous meme in which he screams “Bitconneeeeecct” with plenty of gusto. Matos was an “investor” in the now-defunct Bitconnect Coin.

Bitconnect was a cryptocurrency scam that went from obscure in 2016 at about US$ 0.17 to a high of $436 in 2017. It screamed of potential, becoming a top 20 cryptocurrency token. This couldn’t last, as the price came crashing to $0.40. Regulators came cracking down on the project, forcing its cessation in 2018.

Investor Frenzy in Bitconnect

If you logged in to the website, you’d find no whitepaper or clear team identification, but a promise of unusual profit. Through four phases of the project’s rollout, investors got a guarantee unlike any other in traditional investments such as stocks.

Phase one was the giveaway of 4.8 million Bitconnect coins to investors and the community. The second phase (first quarter of 2017) entailed the launch of BCC wallet and the desktop client to enable staking and mining BCC (Bitconnect coins). Phase three (second quarter of 2017) would be the launch of staking and mining. This meant 120% returns for investors per year! The fourth phase targeted introduction of the “Smart Card” and wider merchant adoption.

A Massive Cryptocurrency Scam

Bitconnect

Bitconnect is an excellent use case for newcomers to learn how crypto scams can operate.

  • Firstly, BitConnect had no traction until the lending platform was announced. For a profitable business, it’s mandatory to have a working product, a product-market fit and a clear revenue model, among other fundamental aspects of valuation. BitConnect had a new product with a supposed market (since adoption had to be pushed) and a complicated revenue model. It simply didn’t make business sense.
  • Secondly, BitConnect guaranteed profits of over 91% and promised returns of over 480% per year. No basis for the guarantee came out clearly from the promises of this once-in-a-lifetime deal with no financial risk. All investors needed to trust was an “undefeatable” trading bot – it couldn’t lose! Assumptions cemented in the flow of money from all over the world – US$2.6 billion – at the peak! For many, the profits were irresistible.
  • The third red flag was an extended capital holding period. This was explained away as a preference/ incentivisation toward staking. After all, it made more sense to profit more as you held your money longer in the system – but even traditional finance allows for clear/rapid cash out should you need your money. It’s yours, right?

The low daily return rate hooked on the old and young. Unsecured lending among traditional financial sector players had after all paved the way for the daily return concept not to seem too foreign. These numbers made far more sense if you put in more than US$ 10,000. You can see why Matos’ profit of $140,000 from an initial principal of $25,000 had many addicted to “the future of investing”. 2017’s cryptocurrency boom of bitcoin and other tokens further served to cement this thought with all manner of possibilities.

If the returns weren’t sufficient or attractive for you, Bitconnect provided a lucrative referral program with seven levels of earning commissions. It was an extra assurance of the profit structure. The bot would have to work overtime and compound profits to ensure everybody won. Put these together, and you have a catastrophe – a true castle in the clouds!

The Tragic Ending

The charade collapsed when the law came calling. 2018 saw victims of the scam lose 30%, then 90% of their value to the insider cashouts with the closure of the Bitconnect exchange.

The Ponzi scheme came full circle with its promoters and their aggressive propaganda disappearing from any reasonable trace. Other exchanges delisted BCC, but the damage had been done. Bitconnect cited excuses on bad press, the Texas State Securities Board Cease and Desist order and DDos (distributed denial of service) attacks, yet the truth was out in the open: scammers won.

Matos disappeared, only to resurface recently taking a lot about weight loss through intermittent fasting. He’s trying to build repute in a different field, which is definitely better than the scam that made him famous.

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What is Crypto Advocate John McAfee’s Net Worth?

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John McAfee

John McAfee has emerged as one of the most influential individuals in the cryptoverse. Learn about this one-of-a-kind crypto advocate, including how much his net worth is estimated to be.  

Who is John McAfee?

You’ve likely used or at least heard about the McAfee antivirus software. It ranks among the top cybersecurity tools to use in ensuring protection from attacks. 

John McAfee is the British-American entrepreneur and computer programmer who founded McAfee Associates in 1987. Prior, he worked at NASA (National Aeronautics and Space Administration) and Lockheed. McAfee Associates produces enterprise security software, even though John resigned in 1994. He has founded other companies such as QuorumEx, Tribal Voice, Luxcore, and Everykey, among others.

A known political activist, his interests also stretch into cryptocurrency, smartphone apps, and yoga. 

Timely Cryptocurrency Boom

In 2017, the ICO (Initial Coin Offering) boom saw hundreds of companies release projects for funding from investors globally without limits on international securities regulations. Riding on the price boom of bitcoin and Ethereum, it was as though a separate economy was spurring overnight. Token prices went from zero to one in hours, with profits surging exponentially in hours or days.

One would call it a craze, but McAfee positioned his profile to benefit from the boom. 

Initially, those who opened up their projects for funding this way simply followed the promise of Bitcoin (financial system independence) and built on Ethereum. Legitimate companies and scammers alike put their proposals for the world to decide, therefore, the battle for legitimacy created high stakes. It wasn’t enough to have a good project; the team /company needed to show who endorsed them or their project.

This is the space in which McAfee could thrive as an industry titan trusted globally.

The Crypto Advocate

John McAfee Net Worth

Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0 via Wikimedia Commons

Imagine taking in about 8 BTC per tweet in a boom; that’s exactly what he did.

The highest prediction he made about the price of bitcoin was between $ 500,000 and 1 million per bitcoin. The admission he made later was that these predictions were to excite and draw new users on board.

An estimated 50 ICOs were promoted on his public Twitter profile. Each promotion cost $100,000. This would bring the number of bitcoin he owns to about 400 if we take an average number of 8 bitcoin according to the price fluctuations in 2017, but the total amount, along with the ownership of other cryptocurrencies remains undisclosed. Assuming a holding of 400 bitcoin at today’s price of US$ 32,478, McAfee’s 400 bitcoins would be worth 12.9 million dollars. 

John McAfee Net Worth: So, How Much Is It Now?

John McAfee lost a significant portion of his net worth due to the 2008 financial crisis that crippled economies around the world. From a valuation of $100 million, his assets hit a low of $4 million in 2009, according to the New York Times.

He certainly worked his way back into profitability through his subsequent ventures in QuorumEx, Future Tense Central, and his tenure at MGT Capital Investments.

MGT is supposedly his gateway into crypto because in 2016 its focus was shifted first from social gaming to cybersecurity. MGT also moved into mining bitcoin and other cryptocurrencies to make money and increase its blockchain expertise. McAfee deemed this strategy vital for cybersecurity, holding it even into his subsequent resignation in 2018.

According to publicly available data, John McAfee’s net worth could range from US$ 7.2 to 20 million.

His run-ins with the law have had him living as a fugitive; for in 2019 he lived on his boat, running from U.S. authorities. He was arrested in October 2020 in Spain at the request of the U.S. Department of Justice for tax evasion charges. 

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