And, Is Bitcoin Ready for Africa?
Updateted October 24,2017
If you are reading this article, it means that you are probably interested in learning more about Bitcoin and the Blockchain Technology behind it. Also you probably want to know what happened to the D9 Clube of Sports Traders. For those currently residing in Africa, you guys and gals need to start paying closer attention.
This Article is titled “Is Africa Ready for Bitcoin?” and is “Bitcoin Ready for Africa?” Included in this article are two interviews conducted by CNN.
Does Bitcoin Have a Mining Monopoly Problem?
Some very important things to know about Bitcoin and Bitcoin Cash. <<<HERE>>>
What is Bitcoin Mining?
My name is Paul.
I am your host on this site.
I am in Ontario, Canada. My little website has opened up a completely new reality for me by allowing me to share with people all around the World. I do not know why, but Africa, somehow has an attraction for me to spend my final years there and I will try to make it there to end my final days. I think it is about maybe meeting up with some of the wonderful people that I am meeting here on this site.
I am saddened (but not surprised) to know that there are so many fraudulent ponzi/hyip/mlm Schemes ravaging the ‘New Frontier’ commonly known as Africa. And, many of these are Ponzi Schemes Using Virtual Currency.
I created this site in early 2016 as an information based utility for the D9 Clube operating out of Bahia, Brazil. D9 Clube is no more.
D9 Clube was a hoax, it was a Coup. It was a Ponzi. ‘Arbitrage Sports Trading,’ never occurred.
Most D9’ers that came in toward the middle and end all have their money tied up. Those that re-entered into D9.2 also have their money tied up. Many, that took out loans (Why?) are now in a position placing them unable to repay loans they took out. There is much distress.
Danillo Santana and the crew executed a very elaborate Coup and have vanished. No access to the site, no access to our back offices, nothing.
What the SEC (Securities Exchange Commission) has to say on the subject of Ponzi Schemes using virtual currency:
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U.S. Securities and Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
The SEC writes, “Be suspicious if you don’t receive a payment or have difficulty cashing out your investment. Ponzi scheme organizers sometimes encourage participants to “roll over” promised payments by offering higher investment returns.”
If the company holds your money hostage via convoluted withdrawal requirements, there’s a good chance it’s operating as a ponzi scheme.
This is exactly what D9 Clube did. They kept encouraging people to “Roll’ their money back in to realize higher gains.
What do Zeek Rewards, WCM777, TelexFREE, Cyber Kids, Zhunrize and eAdGear all have in common? They were all shut down as ponzi schemes AND they all had auto-reinvestment components. In legitimate network marketing programs, rewards go out based on volume. There’s no need for the company to hold YOUR money. If you earn it, you get it. In a ponzi scheme, they need to keep cash inside the system to protect themselves in the event enrollments (money coming in) slow down. What do these requirements look like? Daily withdrawal limits, percentage of your commissions automatically used to purchase more “product,” hold periods for when you can actually sell your “Coins” after purchase, etc. These measures are taken to keep cash inside the system, protecting itself in the event of a crash.
With that being said, we all know now that hundreds of thousands of people (i’m just guessing) were left holding an empty bag as a result of the D9 Ponzi.
Enough about D9. It makes my stomach turn.
Let’s get back to “Is Africa Ready for Bitcoin?”
Africa is Ripe for Bitcoin & Cryptocurrencies
Cryptocurrencies are gradually being discovered in Africa. In countries like South Africa, Ghana, Kenya, Botswana, Zimbabwe and Nigeria, there is a semblance of digital currencies, primarily bitcoin, taking roots.
These countries have got Exchanges and Start-ups in the crypto space, and their businesses are recognizing the significance of Cryptocurrencies in fostering cross-border trade and payment. As a matter of reality, there are more than 1000 merchants accepting Bitcoin in South Africa.
Moreover, the infrastructure for the takeoff of digital tokens is solid. Telecommunication liberalisation across the continent has enabled internet accessibility remarkably.
Figures from GSMA indicates that half of the population in Africa subscribed to mobile telephony. Also, the statistics intimate that for the past two years smartphone usage in the continent has doubled to reach 226 million.
Termed the Money Transfer Protocol of the internet…Interviews from CNN
Below are two Interviews that I have sourced through CNN.
In the first, CNN spoke to Werner Van Rooyen, Head of Business Development and Growth at LUNO, the biggest Bitcoin exchange in Africa about how Bitcoin and Cryptocurrencies are naturally poised to offer Africans financial inclusion.
Please read carefully and leave behind some comments on the contents of the interview.
Interview number 1:
CNN: Has Bitcoin Anything to Offer Africa?
Werner van Rooyen:
Absolutely. There is a huge potential for Bitcoin in Africa. Many Africans could move straight to a cryptocurrency, like Bitcoin, or a bank of the future, such as Luno.
Much of the existing financial infrastructure is inefficient: banks and branches are expensive, currency transfers can often be expensive and slow and most of the developing world is still unbanked.
There is the potential for Africans to leapfrog some of the existing financial services, in the same way, that many Africans skipped the part of owning a cumbersome and expensive land line and went straight to owning a mobile phone.
Most African currencies are reeking of inflation. Does this make Bitcoin attractive as a store of value to Africans?
Werner van Rooyen:
Bitcoin has proven to be the best-performing currency in the world in 2016. I believe more investors in high-inflation countries are looking at alternative asset classes, things like gold or Bitcoin.
Bitcoin has been found to be largely uncorrelated to other asset classes. With most asset classes, there is a correlation (or inverse correlation), like when a country’s stock market goes down, the currency’s exchange rate usually also follows, same for the housing market. Bitcoin is largely uncorrelated, meaning it is becoming an attractive alternative to many investors.
What do you make of some African governments tagging Bitcoin as a tool for terrorism and money laundering?
Werner van Rooyen:
I think this is mostly fueled by incorrect data, click-driven media hype and lack of understanding about Bitcoin. Firstly, I should say that the biggest facilitator of organised crime, including money laundering and terror financing, is cold hard cash.
Many other modern inventions, such as the Internet, Twitter, cars and cellphones, are currently being used to facilitate crime. It doesn’t mean that we should shut these technological advances down (I doubt anyone is seriously proposing it), but rather that the good that comes with it outweighs the bad.
Lastly, there is very little proof that Bitcoin is currently being used for these nefarious purposes. Remember: Bitcoin is only pseudo-anonymous: all Bitcoin transactions ever conducted are recorded in the Blockchain.
Studies by the UK government looking into the best channels for laundering money has consistently found the risk of Bitcoin being used as very low.
Adoption in Africa is irritatingly slow. How do we push penetration?
Werner van Rooyen:
Education and user experience. At Luno, we’re doing a lot to tackle this. Our aim is to make Luno the easiest place to buy, sell and learn about Bitcoin. Something which is no trivial task, but we’re seeing fantastic growth in Africa, especially for our mobile wallet. We’ve also created a Learning Portal to help new people with some basic concepts about Bitcoin.
Do you think Africans will finally embrace Bitcoin?
Werner van Rooyen:
I don’t think they will, I think they already have! We are seeing fantastic adoption in places like South Africa and Nigeria and I’m sure it will ripple to other African nations too.
What makes Bitcoin more expensive in Africa than anywhere else?
Werner van Rooyen:
Bitcoin is a very liquid instrument: it’s easy to move around the world. This, in theory, means that it can and will trade at roughly the same exchange rate, wherever it is available.
Obviously, there are many factors at play, but since the price is determined by supply and demand, it means that in some places where the demand is low, it may trade at a lower price (and vice versa).
Another issue is connectivity: to transact in Bitcoin, you need an Internet connection and ideally a smartphone. Many places are still underserved by the telcos, but this is changing fast. The price of smartphones is also continuously getting cheaper.
Could you paint a picture of the future of Bitcoin in Africa?
Werner van Rooyen:
It’s really too soon to tell, but what we’re seeing already today is really fantastic and I believe Bitcoin has a lot of potential in emerging markets in Africa and abroad.
Interview Number 2
CNN also spoke to Adewale Bankole, President of the Bastiat Society and Humaniq Ambassador of Nigeria about the future of Cryptocurrencies in Africa.
Africa is an emerging market with lots of opportunities. People have been failed over time by fiat money that doesn’t hold value. It is ardouous for our local business people because the local currency doesn’t hold value and most of the time it has to be changed to dollars in order to access International Markets for raw materials and machinery for example. However, with Cryptocurrencies holding the same vallue Globally, it will become more and more seamless to transact business by Africans Globally. This will absolutely create a circle of human and economic development in Africa in the long run.
So, it’s Africa that has a lot to offer Bitcoin and other Cyrptocurrencies and not the other way around?
Yes, the market is here for cryptocurrencies in Africa. Africa has lots to offer Bitcoin and other cryptocurrencies, simply because Africa needs an alternative to the weak and not – always – available fiat money. All products of cryptocurrencies will be well embraced if promoted in Africa. As we speak the vacuum for alternative means of payment is obvious in Africa at the moment.
And do you believe Africans would embrace Bitcoin if the necessary awareness is created?
Absolutely. Once they see that it works. Africans really want something that works with value. The missing link here is the awreness about the technology.
Do you think that the necessary infrastructure is there to make it thrive?
Yes, infrastructure is the key. However, average Africans have smartphones these days, which means that Bitcoin and other Digital Currency transactions can be done. Moreso, with their advent of their Fintech App, has made Africa a most fertile land for Cyrptocurrencies.
From your perspective, do you see any challenges?
Sure. There are always going to be challenges from State and or Central Banks. Definately, they will feel threathened that Cryptocurencies will send them out of the Money Market Monopolisation. But with the persistent success of cryptocurrency transactions in Africa that are slowly solving problems and raising human development, cryptocurrency will surely take over.
Penetration and adoption is painfully slow. What is the way forward?
At this point, I think that a wise governement in Africa that cares about FDI and overall economic growth should just adopt cryptocurrency and let it work in their respective countries. I beleive adoption will rise steadily once the cryptocurrency companies spend more in sensitising African business people and Africans in general. It is obvious that people want an alternative to fiat money. People are tired of working hard for money and working harder to transact with it which is the current situation with fiat money in Africa. This is what I see on a daily basis.
What about Civil Society? Do they have a role here?
Yes, Civil Society has a special role to play because especially Civil Society promotes business.
Civil Society works to promote human development, and I think that they should be a major partner in this Cryptocurrency drive in Africa, since most Civil Society Organizations already have an area of interest and keen followers.
Finally, why will you choose cryptocurrency over fiat currency?
The ‘store of value,’
‘Easy to transact with,’
‘Accepted Globally,’ and
Tanzania is the latest African Country that is embracing the tecnological currency revolution as it shows some impressive growth, despite the small numbers.
In Africa, it is Kenya, Nigeria and South Africa that are pioneers of Cryptocurrenency, but as the World of Bitcoin spreads, even places like tanzania are starting to show growth.
“The main hindrance to adoption of Bitcoin technology, which we do not often talk about, is the lack of awareness and skills to adopt the technology. Bitcoin currently is a sophisticated technology compared to the simplicity of existing platforms like M-Pesa, which my grandmother who does not even speak English can use. The Bitcoin technology needs to get simpler or integrate into other simpler platforms. We also need to get better at educating Africans about this technology.” – John Karanga of BitHub.Africa