Before we begin on this conclusion, Let us understand that this article is not in anyway tied to Bitcoin or advocating for the use or purchase of Bitcoin, but rather the idea or concept of cryptocurrency as a whole. Or better yet, Future money in whatever nature it may be.
At this point now let us see and analyze the Pro’s and Cons of whether Africa should develop its own Cryptocurrency. This topic has the potential of sparking criticism, praise and interest across the globe. Why not, right? However for those said reasons, we shall keep it brief.
From the the 1st part of this 3 part article we mentioned some of the characteristics of Cryptocurrency, and noted how there is a difference between digital currency and cryptocurrencies. Knowing the difference will help us decipher which one is the most viable option if not maybe both can be of good use.
Though somehow similar, but there are massive differences between these two. Digital currency is the electronic model of currency notes and coins that can be stored in the digital wallet. Where as Cryptocurrency is the encrypted form of digital currency, which is still highly volatile in the global investment market today.
So given the differences between the two, should Africa have its own Cryptocurrency or adopt a digital currency system?
Pros for Africa having cryptocurrency:
This is not in anyway tied to Bitcoin but rather the idea or concept of cryptocurrency as a whole.
An Equilibrium “something” in regards to trade capital– Cocoa is an 80 billion dollar industry. 70% of the worlds cocoa comes from just two African countries.- let us start selling in cryptocurrency 🙂
Justification of pricing policies- uniform prices for services and goods across the continent. – Others may say.
Doing away with the burden of carrying hard cash, (Paper money, coins and credit cards) Can be top of the list without much given thought.
- Security – The use of cryptography in the digital space safeguards users from hackers and disclosure of private information with regards to transactions. The data is therefore only available to those who it was intended for.
- Graduating from Aid – Self sustainability can become possible as the continents trade balances improve.
- Improved Trade balances, Logistic and procurement costs will be uniform, be it nationally and or regionally.
“…Many payment platforms such as BitPay, Square and PayPal have started accepting payments in Cryptocurrency. It is also becoming easier to trade cryptocurrencies on established platforms.”
Cons of Having Cryptocurrency:
- IT CAN BE DIFFICULT TO COMPREHEND– Well its fair that we say this is not inclusive of the whole continent but there are some regions where the knowledge of cryptocurrency is still very very minimal, however the majority of the population will be able to quickly adapt to usage of cryptocurrency (If Africa’s literacy rate is anything to go by!)
- CHALLENGES OF MARKET FLUCTUATIONS – Unfortunately there is no safety net yet when it comes to protecting the value your “Cryptocurrency” from market fluctuations, but then on the other hand, same goes to Fiat currency. However a steady market that is easier to make decisions upon may be possible in the near future with use of Blockchain technology and cryptography (But that is a discussion for another day.)
- NO SECURITY IN CASE OF LOSS – As with every emerging technology, there are those that use naivety and inexperience to scam, cheat and steal your hard-earned money. This has certainly proven to be the case with digital currencies, so it’s important to be aware of the safety risks. Treating your bitcoins as real money will get you in the right frame of mind, as you simply have to follow standard security protocol as you would with hard currency. For those using cryptocurrency to buy, sell or gamble online, simply be as careful as you would with any investment. For online casinos, look out for the old tricks updated to the digital age, and don’t trust companies that offer unrealistic bonuses, odds, and offers. With a little basic security, you can minimize your chances of making a loss that can never be returned. –This came from a financial site I cannot remember the link to
In the end.
In the end much can be said and debated about this subject and we can talk about this for months if not years. Whether Africa is able to move to a digital currency or cryptocurrency will be largely dependent on the people of Africa and their governments. Policy makers and central banks will also be key influencers in this future possible decision. The objective however should be to see Africa being better off in the near future when it stands with other continents and regions.
A future single currency could be what brings the great continent together in hopes of being a safe heaven to all it’s children, not just Africans but the world as a whole.