How bitcoin can be useful in developing nations like the African continent.

[d5000]

The big problem with starting bitcoin-related business in such a country as Ethopia, is that the part of the community which has access to internet is not so big, in the whole population of Ethiopia.
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They would need a computer and internet, which is not so easy to achieve in 3rd world countries, first, you should get money for food, water and place to live.

But Ethiopia is a country with a high economic growth and a large population with a growing middle class. If you manage to be the first mover there, it could be a crucial advantage. And as far as I know in most African countries smartphone penetration is going up fast, so the potential target audience would be growing.

Also, you could start a Bitcoin startup first locally and then expand to other countries - or even become a global player, like China's miners.

PS: Where's the OP?

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[GregH37]

Welcome to the forum! I can definitely see this happening. Most developing nations like Africa have terrible traction with their own currency and very high inflation. Switching to Bitcoin would maybe help them get that traction they need to get their economy going.

The problem with bitcoin though is the price fluctuations that make it sort of hard to use as a countries currency. These problems can be overcome though so you might have a point there!

[Yuuto]

Welcome to the forum! I can definitely see this happening. Most developing nations like Africa have terrible traction with their own currency and very high inflation. Switching to Bitcoin would maybe help them get that traction they need to get their economy going.

The problem with bitcoin though is the price fluctuations that make it sort of hard to use as a countries currency. These problems can be overcome though so you might have a point there!

Exactly, that is why we shouldnt consider something like that, this solution is just not useful for such a countries, where the citizens are living in poverty.
Their currency is not stable comparing it to other, trusted fiats such as USD or GBP, so the price is volatile, same with their earnings basically, because the value of the currency applied, has the influence on the food prices.

I think that third world countries are still not ready to use the cryptocurrencies as additional way to get money.

[thend1949]

Bitcoins may help in developing nations like african continent ofcourse financially.If those developing places in africa can access internet they may use bitcoins to gain money and help to raise their economy through the help of it.

[Barbut]

Some of the African countries have very bad economy, with that on my mind I think it would be good for them to start with something new and fresh. Most of the African countries, if not all, are with very corrupted governments, I think using crypto-currencies they can follow the money and everything can be more transparent, and transparency is a pillar of democracy.
I think that Africa have a lot to offer to the world, problem is someone to take money and share it justly. That is the only way for them to get out from the dark, if its possible to somehow end with bad regimes they have for centuries.

[Mometaskers]

Ah Ethiopia, cradle of humanity. One thing that still gives me faith in humanity is whenever I read something about Africans leapfrogging techs and infrastructure. It really makes me hopeful something big will come out there. They never had telephone lines, so why not just focus on mobile? Cool.

A large portion of the population is unbanked so that's where it innovation could start. Bitcoin prices can rise and fall quite quickly so it might still be unstable as fiat replacement but if they make an online wallet they'd be able to convert to fiat during times when bitcoin is high, somewhat reducing the likelihood of not having money when you need it.

[darthmaul]

If you guys saying Ethopia is being equipped with smartphone and advancing with economic grows then that is not sufficient for it. Just imagine peoples are setting up their mind for smartphone in these days but how can we let them know about completely virtual currency like bitcoin? Means, the question is whether they will accept it in the first place or not? There still lies an infrastructure stuff, you can run business of bitcoin without an local bitcoin networking. They will need a team of miners and bitcoin awareness campaigns to be placed through out the cities. This will need additional cost to government and new regulations for tax. For this government to will need to be educated (well thats too much) but will need to look after many stuff like these. From tiny adjustments to big infrastructure.

[davis196]

Bitcoin is more stable than most of the african national fiat currencies.
This is the most obvious reason for the africans to adopt bitcoin.
Anyway,this question is asked here before.
You should search the forum before making such threads.

[DrGuns4Hands]

I think this question asked here before. Bitcoin can be useful in developing nations like African. Well, yes! Unlike there national fiat currencies? Bitcoin is more stable than those. This is the most reason to adopt cryptocurrency not only for African but for other countries that have bad economy.

[The Sceptical Chymist]

Welcome to the forum! I can definitely see this happening. Most developing nations like Africa have terrible traction with their own currency and very high inflation. Switching to Bitcoin would maybe help them get that traction they need to get their economy going.

The problem with bitcoin though is the price fluctuations that make it sort of hard to use as a countries currency. These problems can be overcome though so you might have a point there!

Exactly, that is why we shouldnt consider something like that, this solution is just not useful for such a countries, where the citizens are living in poverty.
Their currency is not stable comparing it to other, trusted fiats such as USD or GBP, so the price is volatile, same with their earnings basically, because the value of the currency applied, has the influence on the food prices.

I think that third world countries are still not ready to use the cryptocurrencies as additional way to get money.

Yuh, I don't either.  Franky1 made a good point in another thread about transaction fees being way higher than most 3rd worlders could afford, and it made sense.  What dirt-poor African is going to spend $8 sending bitcoin to buy anything?  Ans: No one.  So transaction fees would have to come down considerably before it gets adopted as a currency.  As an investment, it's a great idea.  Don't know if Ethiopia is ready for it yet, but props to anyone there who's got any bitcoin.  You could get rich.

[Pettuh4]

It can help those poor countries through the sending of foreign remittances at cheaper cost comparatively. It doesn't have to be controlled by their governments before it can help them so I think if they are all brought into the know of Bitcoin they will profit exceedingly.

[Sled]

It can help those poor countries through the sending of foreign remittances at cheaper cost comparatively. It doesn't have to be controlled by their governments before it can help them so I think if they are all brought into the know of Bitcoin they will profit exceedingly.

Bitcoin can't be controlled by the government so if there is a remittances then it will be cheap in fees. It will help african countries because there will be no corruption in their country if they will use bitcoin because it is fully decentralized and corruption is not possible anymore with bitcoin.

[megynacuna]

African countries and Africans as a whole can benefit from Bitcoin by using it for foreign remittances and tradingv it's it. I'm aware most finished products are exported to Africa from china , UAE etc. and these can be paid by the African importers with Bitcoin and be able to realize good profits rather than get deductions unnecessarily through dis bank transfers.

[gabmen]

African countries and Africans as a whole can benefit from Bitcoin by using it for foreign remittances and tradingv it's it. I'm aware most finished products are exported to Africa from china , UAE etc. and these can be paid by the African importers with Bitcoin and be able to realize good profits rather than get deductions unnecessarily through dis bank transfers.

well for some parts of africa, only those exporters and a number of illegal businesses would benefit from btc features. it can be great for the people there who have access to the internet but as we all know, africa is not yet that established when it comes to online transactions especially the poorer countries

[syaripudin]

Bitcoin's potential for success in Africa is widely recognized in the industry
And able to Change the way we send money to the continent and provide easy access to not having a bank account for money quickly and freely
Which is an alternative currency to anyone but especially useful land and unstable national currency and can reduce the cost of cross-border trade

[d5000]

Bitcoin is more stable than most of the african national fiat currencies.

That is a common misconception, often based on news on the hyperinflation in Zimbabwe. Most African countries are using some form of the CFA franc which is tied to the Euro (see here for a price chart). Sometimes there is a devaluation, but it's very rare, the value respect to the EUR hasn't changed in the last 5 years.

The Ethiopian Birr is constantly devaluating with respect to the USD, but at a very, very slow pace, so the short-term volatility of Bitcoin is much higher. The Naira also is long-term volatile but in the short term relatively stable.

So if mass adoption in Africa is desired, volatility must be addressed in some way. But even now, for remittances it's usable, also as a speculation and saving vehicle for the growing middle/upper-middle class.

[Yuhee]

Bitcoin's potential for success in Africa is widely recognized in the industry
And able to Change the way we send money to the continent and provide easy access to not having a bank account for money quickly and freely
Which is an alternative currency to anyone but especially useful land and unstable national currency and can reduce the cost of cross-border trade

Is it really bitcoin or are they having a project for there own crypto currency?. Cause what i heard is that some countries are trying to adapt the concept of btc to have there own crypto for it to be circulated either in there own currency or just mine the btc. Because i can is that it is better to make your own btc so you can have your own gold to mine when ever all money are now invested in the web. At least a country wont be left behing with it's own currency.

[bouren]

Widespread of bitcoin in African countries is good idea. But the major problem restricting it is internet. Bitcoin doesn't require any hard and fast infrastructure but minimum basic requirement is internet. Therefore, I think bitcoin is presently restricted to high class only until internet becomes more common among every class of society.

[audaciousbeing]

Africa is an evolving country economically and bitcoin penetration will be high since they don't have the technical expertise to stop its popularity and it will continue to create wealth for its citizen who taps into it. Government of African countries have equally failed in creating wealth having being immersed in cases of corruption and bad governance which makes individuals creation of conducive standard of living a priority which is what bitcoin will do.

[d5000]

But the major problem restricting it is internet. Bitcoin doesn't require any hard and fast infrastructure but minimum basic requirement is internet. Therefore, I think bitcoin is presently restricted to high class only until internet becomes more common among every class of society.

I don't think that is still that true. Smartphones are increasingly becoming common in Africa. In Kenya, mobile payments (M-Pesa) are already mainstream, even more so than in many "developed" countries.

Africa is an evolving country

No.

Government of African countries have equally failed in creating wealth having being immersed in cases of corruption and bad governance which makes individuals creation of conducive standard of living a priority which is what bitcoin will do.

Not all African governments are corrupt like Zimbabwe or Cameroon. There are pretty efficient ones (Ghana, Senegal, Rwanda, Zambia ...) also Nigeria is improving. But Bitcoin can be a medium to put some pressure on bad governments, that's true.