How Africans Are Using Bitcoin to Beat Inflation and Weak Local Currencies. ‎

[Die_empty]

Bitcoin have become an eye opener and a fast solution to people in countries whose currencies are facing inflation, they now have a solution in Bitcoin as an alternative to fiat that is hedge against inflation. It should be noted that Bitcoin is volatile and not recommendable to convert money for short term use into it because it could dip by the time the holders wants to spend it. Money that should be saved in Bitcoin should be what a person don't intend to touch for a long term, the longer you hodl Bitcoin on the long term it will be increasing in value. Convert fiat for short term use into stablecoins like USDT that is pegged to US dollar which is more stable than many currencies.

I saw my father using fixed deposits, stocks or lands as a means of avoiding inflation. The interest from bank fixed deposits and others is not sufficient to protect investors from inflation anymore. Some countries are going through double digits inflation.

Bitcoin is an innovation that has changed the conventional means of investment. Land is a good asset in my location but it is not liquid. Selling a property could take a long time. Bitcoin offers a better package in profitability and liquidity. You are right, Bitcoin should be held for a long time for profit to be realised.

[FanEagle]

When your fiat is terrible, bitcoin is great to work with. I work freelance and take bitcoin as payment, or crypto basically, and I can use that or save that, which means I am making more each money while fiat salary earners make less. Why and how? Well, let's say that I make 800 dollars worth of btc every month, that 800 dollars worth will be 1000X amount for some fiat, in three months, it will be 1100x amount ,and in 1200x and 1300x slowly my 800 will stay stronger because of it.

I think people need to realize that and we should be considering how people should be happy that we are in the crypto market. There isn't really anything that could hurt it, we should be happy that we already have what we have and bitcoin is superior to all.

[M47AK16]

This is part of the reason why bitcoin was introduced, so that the people can have what to fall back on as an alternative to the steady fall in value of fiat currency, this does not limit to the African region alone, but a global phenomenal and impact targeted at everyone who is willing to adopt having an alternative digital currency to fiat currency controlled by the government, inflation is not something to toiled with in financial economy.

As we can notice, there is a limitation on the supply of BTC, so you might be right with that. If BTC is not invented, we still have gold and others. We know that BTC adoption is wide now but the countries which local currency are suffering may not be too much in number. Africa must be one of it, so it is justifiable that they can have a special mention. Inflation is still an issue even though there is now a fix for it, and then hedging is not easy as it seems, plus not all are aware with the fix.

So inflation is something that will always toil or hunt them and the solution must be adapting bitcoin. Bitcoin will definitely help them to beat inflation. Countries with weak currencies are always candidate of adapting US dollars but bitcoin must be superior than bitcoin, so against weak local currencies, bitcoin must be a right solution.

[tabas]

Just like in countries where inflation have hit them so badly and they are in hyperinflation, they're no longer dependent on their cash but to USD. And in Africa, with countries there that have also high inflation, it's best to save money not in fiat but in bitcoin. This keeps the value and then also grows over the period of time. Everyone who does this is aware of the volatility that bitcoin possesses and they're not exempted to the volatility of the market which is a common thing. But at least doing this, they're having a better choice than their local currency.

[wiss19]

That is almost the same in every country. People prefer savings in bitcoins for higher returns so they could beat inflation. But will this not make the situation worst? Centralized banks will have lower deposits and this will make them increase the rates on loans which will again affect the people. If centralized banks do not have adequate money they have no other option but to start charging extra for every transaction made and at the end this is going to affect the economy and the poor.

Rich will not even care about these little things but for poor this might be life changing as they have to pay their debts at the end of every month and also balance their expenses. Not everyone in Africa will go towards bitcoins. The ones who are left behind might face the consequences.

[Z390]

When inflation hit hard on Nigerians those who were knowledgeble about bitcoin and crypto currencies began to liquidate most of their cash saved in banks to buy bitcoins. It protected them from losing their wealth but the government didn't like it. They blamed crypto traders as the cause for it and started to go after them. Some of them were physically arrested. But did that change anything? No, it just proved a point to the general public and made more Nigerians aware of the protection that bitcoin has against inflation and wealth depreciation.

I've never come across any news in the country that the government are arresting those who use their hard earned money to buy Bitcoin, it was banned in the past but not anymore, you will have to produce enough evidence for me to believe this.
The arrests that was carried out are all involved in fraud cases, scamming is a very common thing in the country and these scammers are using Bitcoin to get money from their victims, through romance scam especially.
The scam rate is alarming to the point that even Bitcoin investors from Nigeria are practising scams online, why would they keep arresting people? This is not a ban on crypto and users getting arrested, it is a war on scammers and fraudsters online.

[doomloop]

Just like in countries where inflation have hit them so badly and they are in hyperinflation, they're no longer dependent on their cash but to USD. And in Africa, with countries there that have also high inflation, it's best to save money not in fiat but in bitcoin. This keeps the value and then also grows over the period of time. Everyone who does this is aware of the volatility that bitcoin possesses and they're not exempted to the volatility of the market which is a common thing. But at least doing this, they're having a better choice than their local currency.

This does not necessarily mean that they will be able to fight inflation only if they are holding their money in bitcoins. What if the prices for bitcoin starts falling or we enter a year long bear season? This will make situations worst for such people because their main motto behind investing into bitcoins was to fight inflation but the value of their money in bitcoins as well has dropped which is worst than inflation. Risks will always be their in finances no matter what you choose.

With bitcoins, we get additional earning sources like trading where we can still continue making profits even in a bear season but this is not a secure form of investment at least for those who just plan to hold bitcoins or use them on day-to-day basis.

[Agbe]

Bitcoin has become one good source through which Many Africans are using to beating the harsh economic conditions that, they are passing through due to high inflation rate which is caused by unstable African economies which depends mostly on import. This has created a situation were African countries are Left to struggle because the currencies of most African countries are getting weaker each day that passes. This has created more hardship and poverty in this continent Bitcoin is one way out due to its stable nature which stands as an hedge against inflation and Africans Which has known this fact is benefiting from it.

[Marvelockg]

The devaluation of the naira and other currency is not just an African thing, almost all fiat are facing same fate hence the shift of Interest to bitcoin as a solution to a declining economy that's also affected by the devaluation of most local currency.

The population of Africans that are technologically strong enough to know how useful bitcoin is in curbing inflation and the devaluation of her currency is still smaller compared to those that only know about fiat as her primary medium if exchange. Like we've always discussed in our local board, it takes more than holding bitcoin to effectively beat inflation. If you're converting your asset to bitcoin just because you want to beat inflation, it will just be a matter of time before experience lack in terms of getting enough resource that you can even use in investing in bitcoin in the first place.

[Hamza2424]

‎Inflation can kill saving, just imagine you loss 30% just in a year,  it is very bad, so it is better to use something that will add value to your money than to decrease it, just like Bitcoin irrespective of all trends,  Bitcoin rise in long term,it's helps you receive and send money anytime anywhere, it's also help you transfer money across borders without any restrictions or charges fees like banks.

These countries are really losing value to the number you mentioned (30%) that's crazy bro if its true but bro if you are really losing money and want to preserve the value for long term there are stable currencies that you can convert to so the value preserves for short term but for long bitcoin is the best choice but keep in mind that btc also dumps and it dumps more than 30% and it can dump more than 30% in one night.

Although the freedom is the best feature of btc, we can own, ,send and receive at anytime and at anywhere in the world, even if we are under 18 and have licenses and can't open bank accounts, but we can still use btc for anything.

[DrBeer]

‎I have been thinking lately how hard inflation has affected many countries in African, things keep going high and our currencies doesn't have value anymore including naira, Zimbabwe dollar,or cedi, it's looks like the story are the same In everywhere across African countries.
‎Because of this, I’ve noticed a growing number of people turning to Bitcoin as a way to protect their money. Some save in Bitcoin instead of keeping cash in the bank, others trade it, and some even use it for cross-border transactions and freelance payments.
‎This made number of people running to Bitcoin as a means in which they can save their money some people save money in Bitcoin instead of going to the bank, while  some people trade it, why others use it as a cross border transaction in which they can make payments.
‎Inflation can kill saving, just imagine you loss 30% just in a year,  it is very bad, so it is better to use something that will add value to your money than to decrease it, just like Bitcoin irrespective of all trends,  Bitcoin rise in long term,it's helps you receive and send money anytime anywhere, it's also help you transfer money across borders without any restrictions or charges fees like banks.

Inflation, especially when it is uncontrolled and high, always hits the poorest citizens of the country hardest. However, this also affects other segments of the population to one degree or another. The only way to preserve value, and this is no secret, is to convert local currency into more stable and easily convertible currencies. For example, the dollar or the euro, with further exchange into local currency if necessary, or settlement in foreign currency. Cryptocurrencies can also be a convenient method, but under certain conditions:
1. They are easy to exchange for local or stable fiat currency.
2. Ideally, cryptocurrencies can be used to make purchases in local stores.
3. Cryptocurrencies must support “cheap” and fast transactions.
According to points 2 and 3, Bitcoin is not a convenient means for such transactions. But as a solution for ACCUMULATION, Bitcoin is not a bad choice, since there is a non-zero probability that its rate will grow, which will bring additional income to those who accumulate assets in it.

[Emitdama]

Me and many of my friends have our monies in Bitcoin which have several advantages over our weak currency. Bitcoin have helped us in so many ways especially as our currency is devalued thereby making the prices of things to go extremely high. Our currency have completely lost value and inflation is at the roof top but those with Bitcoin have nothing to worry about since inflation does not affect Bitcoin as much as it affects fiat.

It so sad that banks and governments are not doing anything to at least address the issue but if I am a business owner, I would be glad to lower some of my pricing, in order to help the people that are affected. There is no need to worry about if we are late to enter and save bitcoin by considering its current price level. But in my opinion, still there are plenty of chances for again prices to double and triple in near future.

Some people do claim that we are still in the early adaption phase of bitcoin and I agree with that. The late adaptors might have just born or yet to born. So, there are lots of potential with bitcoin and adapting it and saving it will definitely help when we are from economically troublesome country.