On November 15, it was revealed that Zimbabweans were paying $13,500 for bitcoin, a sum that was described at the time as “eye-watering”. Last month’s expensive bitcoin is this month’s cheap bitcoin, and the intense demand for the digital currency has since pushed it to over $19,000 globally as of this writing. The premium that’s been in place at the continent’s Golix exchange remains in place though. As a consequence, one bitcoin there is currently trading for around $32,000, down slightly from a peak of $34,000.
Bitcoin has always traded higher in nations such as Zimbabwe, South Africa, and Nigeria apparently, but previously only by around 10%. One reason why buyers will pay over the odds for their cryptocurrency in Africa is due to a lack of liquidity. When there’s a shortage of sellers, it’s easy for players to set higher prices in the knowledge that their orders will still be filled.
Africa is one of the worst places in the world to mine bitcoin. It’s hot, dusty, and suffers from poor infrastructure. Power blackouts are a daily occurrence in many parts of the continent, making Africa wholly unsuited to mining.
Bitcoin might be unsuitable for mining and priced at a premium, but Africans have at least one other means of getting their hands on cryptocurrency – by earning it. It’s a slow accumulation strategy, but one in which they are at less of a disadvantage.
The process requires hard work and perseverance, but Africans aren’t afraid to graft. Given the financial stability and possible route out of poverty afforded by cryptocurrency, it’s no wonder Africa has developed a taste for bitcoin.
https://news.bitcoin.com/bitcoin-trading-40-premium-africa-heres/
