Often times, sellers and business owners in Africa rely on other more stable currencies. Often, the U.S. dollar, or diamonds and gold. When someone in Africa purchases electronics from Chinese sellers, they use these other avenues of fiat for their purchases that they then re-sell back in their home countries.
BTC, being far more stable, and easier to procure, is helping make that process easier. Instead of using the Nigerian naira or using parasitic money-transfer services for remittances, BTC is seeing adoption as a means of value transfer.
One businessman, Abolaji Odunj, had this to say to Reuters:
“Bitcoin helped to protect my business against the currency devaluation, and enabled me to grow at the same time,” Odunjo told Reuters from his two-by-eight meter shop. You don’t have to pay charges, you don’t have to buy dollars.”
NBC news reports the following stats:
- Monthly cryptocurrency transfers to and from Africa of under $10,000 – typically made by individuals and small businesses – jumped more than 55 percent in a year to reach $316 million in June
- The number of monthly transfers also rose by almost half, surpassing 600,700
- Much of the activity took place in Nigeria, the continent’s biggest economy, along with South Africa and Kenya.
- In Nigeria, small cryptocurrency transfers totalled nearly $56 million in June, nearly 50 percent more than a year before. The number of transactions jumped over 55 percent to 120,000.
This is a far cry away from BTC’s detractors, who claim the cryptocurrency is just a bloated mining farm that eats up the world’s energy sources and is only good for buying drugs on the darkweb, or for gambling.
Although there is certainly criticisms to be made about all those points, the fact that Bitcoin is able to improve the businesses of those in less developed countries should be celebrated and upheld. It goes to show how blockchain technology can be used to fix economies otherwise left neglected and prey to fiat inflation and parasitic banking cartels.
As far as this example is concerned, the Bitcoin used to purchase the electronics that are going to African countries end up in the hands of Chinese suppliers. Still, this growing sector of the economy provides a foundation of real wealth transfer that, in the long run, can add stability to the rest of the crypto markets.
As sales of commodities continue to occur between Asia and Africa using BTC as a means of payment, which considering the stats above isn’t likely to cease anytime soon, we can predict that the value of BTC, finding real use by real economic structures with real commodities and value behind them, will become further stable as time goes on.
That is to say, it won’t be used by gambling cartels for playing short/long margin trading. It is instead being a cornerstone to two massive economies that rely on it, and as such, have power over the coin itself.
Imagine BTC in ten years as THE primary means of value transfer between two continents!