Cryptocurrency adoption has increased at a high rate over the last few years. Studies show that there has been a 1200% increase in cryptocurrency adoption in the continent. Considering the population in Africa, only a minor fraction of the population has been involved in one way or the other in cryptocurrency. But the last few months have shown that this is the best time and opportunity for people and organizations to be involved in cryptocurrency. Some of the reasons why this is the best time include the following:
The main reason is that the value of the cryptocurrency has decreased in the last few months. Good business people know that they should always take advantage of a problem and how to use their capital to improve their financial position. In this situation, since crypto’s value decreased, people can invest and wait until the currency gains value again. This is a good business opportunity for many Africans since most Africans are involved in peer-to-peer trading.
Cryptocurrency has lost value due to two players, Tesla and China. Tesla was the first to make an announcement that impacted the value of cryptocurrency in the entire world. Initially, Tesla announced they would allow people to buy their products through cryptocurrency. But early in the year, the organization announced that they would not allow crypto as a payment tender because they feared that most cryptocurrency is mined through energy harmful to the environment. This is true, considering most of the huge mining operations use coal and diesel-powered generators.
A few days after, China made the situation worse. The Chinese government implemented regulations that opposed cryptocurrency in the country. The first was when the government ordered Bitcoin and other cryptocurrency mining in Sichuan province to shut down immediately. This led to the demand for crypto in the world going down.
The other effect was when the government instructed the local banks not to support any cryptocurrency transactions in the country. The situation worsened when the Central Bank in the country, known as the People’s Bank of China, completely banned digital coins and made cryptocurrency transactions illegal. This made people who had cryptocurrency in China rush to sell their coins in a market where the demand had decreased. Cryptocurrency mining processors were also offered at a throw-away price as miners wanted to recover some of their investments.
This is high time Africa gets involved in the cryptocurrency market. Apart from buying cryptocurrencies, Africa could also be involved in Cryptocurrency mining. After the ban on crypto mining in China, many mining processors are sold for pennies on the dollar. Africans can take advantage of this and buy them and be involved in mining.
The best thing about this is that Africa may use clean energy in mining to shape cryptocurrency. Most of the energy in Africa is produced from clean energy such as solar, wind and hydroelectric power. Doing this might make organizations such as Tesla start accepting cryptocurrency as payment for their products and increase their value again.