Bitcoin on the rise in Kenyan slums

[MithiRM]

While using Bitcoin in Kibera’s Soweto West may offer financial inclusion for those without bank access, the risks far outweigh the benefits. First, Bitcoin’s notorious price swings can devastate households some residents already hold 70–80% of their wealth in it, making any dip potentially catastrophic.

Second, there's little oversight or consumer protection in place; this means people could be exposed to fraud or loss without legal recourse.

Finally, while reduced transaction fees might sound appealing, volatility and lack of regulation could negate true utility, especially for vulnerable communities living day to day.

[coupable]

https://youtu.be/rPVoaYFiIDg?si=0mVpCoA-1_gfTAIO
 However, as is typical, experts have cautioned that this approach could carry significant risks.

What risks does using Bitcoin as a primary currency carry?
Honestly, I don’t see any serious risks. The only real risk is short-term volatility, but in the long run, those who use and save Bitcoin will have much greater purchasing power.Fiat currencies are unstable and far riskier in the long term. Their value constantly decreases due to inflation, and any fiat currency can literally enter hyperinflation overnight and lose its value. In that sense, Bitcoin’s volatility is a smaller problem compared to the potential collapse of the fiat system.

Bitcoin is a more reliable and safer choice in the long term than any government-issued currency.

Regardless of volatility risk, starting such an initiative remain riskier in a country who has no regulatory infrastructure for cryptocurrencies and all digital currencies. Without a regulatory frame, authorities can seize the whole project overnight and arrest all the persons behind. It's always great see people use bitcoin for daily transactions, however it has no meaning if this would put them into troubles.

[Odusko]

https://youtu.be/rPVoaYFiIDg?si=0mVpCoA-1_gfTAIO

In Kibera, located in Kenya's capital Nairobi, some roadside vegetable stands are accepting an unconventional form of payment. Residents in the Soweto West area of Kibera, are using Bitcoin as part of a project aimed at bringing financial services to a community that struggles to get access to traditional banking. However, as is typical, experts have cautioned that this approach could carry significant risks.

What do you expect when you leaving in a world with so many loser's call politicians who are eating good and fat but making lazy financial laws that give their citizens freedom from third party involvement in they financial deal, so if because of inflation the citizens decide to take Bitcoin as a form of payment it shows the world is moving and what use to look risky before now is soft and the best alternative.

[jogoo]

https://youtu.be/rPVoaYFiIDg?si=0mVpCoA-1_gfTAIO

In Kibera, located in Kenya's capital Nairobi, some roadside vegetable stands are accepting an unconventional form of payment. Residents in the Soweto West area of Kibera, are using Bitcoin as part of a project aimed at bringing financial services to a community that struggles to get access to traditional banking. However, as is typical, experts have cautioned that this approach could carry significant risks.

Kenya is one country that is known to be open to learning new things and I'm not surprised they are embracing Bitcoin in droves. I remembered when Vodafone and Safaricom launched the M-Pesa in Kenya, it spread like wildfire and revolutionized the banking system of Kenya, bringing banking services to people in rural communities. Today Kenya has of the highest percentage of population that have access to banking services in Africa. If Bitcoin can be made easy to use like the M-Pesa, I'm sure that a greater percentage of Kenyans will embrace Bitcoin straight up.

That is true. Kenya’s adult literacy rate is at 85% lately, which is above the global average of 81%. Many slum dwellers do have internet access via smartphones. The rise of community-driven networks and mobile-first solutions is helping close the gap. Nairobi slums like Kibera are seeing growing connectivity, thanks to community networks and affordable mobile data plans. With their shitty government and fiat currency, even with very advanced mobile money adoption (M-PESA), that region is ripe for massive bitcoin adoption, me thinks.

[Die_empty]

That is true. Kenya’s adult literacy rate is at 85% lately, which is above the global average of 81%. Many slum dwellers do have internet access via smartphones. The rise of community-driven networks and mobile-first solutions is helping close the gap. Nairobi slums like Kibera are seeing growing connectivity, thanks to community networks and affordable mobile data plans. With their shitty government and fiat currency, even with very advanced mobile money adoption (M-PESA), that region is ripe for massive bitcoin adoption, me thinks.

From this article , it is clear that some of these Bitcoin users understand how the currency works. They are taking advantage of the cheap fees and fast transactions. Others are using Bitcoin for security reasons since it is safer than keeping cash. Some of them intend to keep hodling the coin for a long time.

But my challenge is whether these low income earners will be able to keep Bitcoin for a long time? I also doubt that all of them understand that their Bitcoin asset can lose its worth drastically during bear market. They should also be aware that transaction fees could rise when the mempool is congested. If they have enough knowledge, this move is a good one.  

[Bitcoin_people]

https://youtu.be/rPVoaYFiIDg?si=0mVpCoA-1_gfTAIO

In Kibera, located in Kenya's capital Nairobi, some roadside vegetable stands are accepting an unconventional form of payment. Residents in the Soweto West area of Kibera, are using Bitcoin as part of a project aimed at bringing financial services to a community that struggles to get access to traditional banking. However, as is typical, experts have cautioned that this approach could carry significant risks.

I know that there is a Bitcoin ATM machine in Nairobi, Kenya from which users can purchase Bitcoin. Also, a company in Kibra has taken an initiative where employees and vendors accept Bitcoin transactions locally. While such an initiative can be very good financially for locals and they have the convenience of transactions, the free is a bit too much here. It would be great to do afternoon transactions, I also think that there is a lot of risk here so you should be aware.

[Lucius]

Unfortunately, life is not easy for people living in many African countries, and regardless of the fact that they have many natural resources and hardworking people, they are still mostly poor. I think that Bitcoin can be of great help here, primarily as a currency, since people only need a smartphone with internet access and a BTC wallet.

The highlighted one seems to me to be the main problem for poor people in poor African countries - a very low standard of living that makes it difficult to buy a smartphone + Internet (additional expenses). Also, a fairly low level of literacy, especially technical, which will make it difficult to use the BTC-wallet (correctly and safely). Also, smartphones remain quite vulnerable to storing bitcoin. Therefore, I believe that buying vegetables in Africa for bitcoin will not start very soon. And in general, I consider this something comparable to buying bread by paying with a gold bar.

We talked before about how smartphones have actually become very cheap and available, and the same is true with mobile internet, and with the increasing availability of satellite internet, which according to the latest information is available in about 20 African countries, it seems that more and more people on that continent are getting connected to the rest of the world.

As for literacy and IT education, it may not be at the level of Western countries, but you may have seen that many of our friends from Africa have testified that they are very well organized and transfer knowledge to each other, and just one person who knows how to install a BTC wallet and use it can teach dozens of people who then spread that knowledge further.

I agree that mobile wallets are a risk, but for smaller amounts every hot wallet makes sense - everyone has to start somewhere, and I'm sure that some will manage to buy computers and maybe even hardware wallets in the future. A lot of people agree that Africa has great potential and a lot of people will start using Bitcoin as soon as they get the chance to do so - so any initiative similar to the one we are talking about is welcome.

[kotajikikox]

I guess they have a crappy currency, even crappier than currencies like the dollar or the euro, and people get by as best they can. Apart from being extremely useful for the unbanked. That makes sense. From what I see on the forum, something similar is happening in Nigeria.

I have found that it is the biggest slum in Africa and third overall in the world. It is even said that half of its population is unemployed while half earns less than a dollar. It seems like they are in a bad economic situation so to speak. Putting this in mind, we would understand how it is much better for them to use crypto to keep the value of their money instead of letting it fall victim to their own inflation rate.

[MainIbem]

https://youtu.be/rPVoaYFiIDg?si=0mVpCoA-1_gfTAIO

In Kibera, located in Kenya's capital Nairobi, some roadside vegetable stands are accepting an unconventional form of payment. Residents in the Soweto West area of Kibera, are using Bitcoin as part of a project aimed at bringing financial services to a community that struggles to get access to traditional banking. However, as is typical, experts have cautioned that this approach could carry significant risks.

It nice to see that more underdeveloping societies are gradually giving room for decentralisation, what caught my attention is that seminars are being held to inform people in that society about Bitcoin and they're doing it voluntarily,  many people are yet to use Bitcoin because of ignorance, disinformations about it, not everyone is opportuned to know about this forum and learn about Bitcoin but if Bitcoin enthusiasts can voluntarily hold seminars or sessions in rural areas of their societies to inform more people who are interested about it then it would help get more people informed.