How the Bitcoin community in Africa is promoting Bitcoin adoption

In October 2020, Nigeria witnessed the largest protests the country had ever seen, as thousands of young people came out to march against police brutality and demand the disbandment of the notorious Special Anti-Robbery Squad (SARS). The #EndSARS protests lasted about 2 weeks and suffered severe government repression – one of which was financial. Between 11 and 14 October will Feminist Coalition, which consisted of 14 women at the time, had their bank accounts suspended, forcing them to find alternative ways to obtain the financial resources needed to support the protests. They found Bitcoin.

Bitcoin for a fair economic system

Anita Posch is a digital nomad currently residing in Zambia. She was a web designer for about 20 years before stumbling upon Bitcoin in 2017 and now works as a Bitcoin educator. Anita is the founder of Bitcoin for justice, a non-profit organization committed to educating grassroots people about Bitcoin and its potential to empower them. About the motivations for her work, she said: “Many people are excluded from the global financial system because they are either too poor, cannot access a bank or do not have all the necessary paperwork for it. Bitcoin is an equalizer here, giving everyone around worldwide the same access to the same financial system. We live in an unfair world, but bitcoin is open-neutral internet technology, which just like the internet allows people to act freely. It is neutral and takes no sides regardless of race, gender, nationality or social/economic status. No one can freeze Bitcoin transactions or interfere with them, which is a very useful tool in today’s social and political climate.”

Money is an important component in a globalized world and should be mobile and flexible. However, it is often heavily regulated, which can limit people’s access to them and their use. Anita believes that Bitcoin can provide unfettered, decentralized monetary connections.

“In the course of my work, I have met someone who told me that Bitcoin was the first time they were allowed to send money from Zimbabwe to Malawi. Previously, they could not do it without a lot of paperwork or high fees.”

Bitcoin as a way to counter inflation

Mary Imasuen is a content creative media associate at Bitnob – a Bitcoin trading platform – and a Bitcoin player and podcaster.

Mary’s interest in Bitcoin grew in 2018 – the year she realized that the interest she was getting from her savings and regular investments was not enough to counter inflation. This realization prompted her to look at investment opportunities that could protect the value of her money. Her search led her to Bitcoin.

Nigeria’s inflation has been north of 10% since 2018, with the current inflation rate at 20.95%. For young Nigerians, the future is trying to build wealth while earning an unprofitable salary in naira.

“If you look at the performance of Bitcoin over the years, you will see that the return on Bitcoin is much higher than what your naira or stocks are giving you. Bitcoin is giving an average of 230% annual return and when you think about that in a country like Nigeria where the inflation rate is above 20.5%, it just makes more sense to invest it as an asset because it will fight the inflation rates.Mary said.

Mary is very involved in the Bitcoin community; she sees Bitcoin’s potential to help young people get the most out of their money. And Mary is not the only Nigerian with digital currency predictions because Nigeria reportedly has a Bitcoin adoption rate of 24.2%.

“The world is headed for a recession and Bitcoin is a great tool to protect your finances. As an asset, it is deflationary and limited in supply – unlike currencies like the naira or the dollar which can easily be printed, putting them at risk for devaluation. Regardless of how much the price of Bitcoin falls, it remains the best asset of the decade, and has returned more than any stock or investment.”

Internet-free Bitcoin for people in rural communities: Machankura

Africa has the highest rate of Bitcoin adoption in the world, and a major reason for this is widespread education about the benefits of the cryptocurrency. There is a dynamic Bitcoin community in Africa with members committed to promoting awareness of its potential and improving access to it.

One such is Kgothatso Ngako, who is the founder of Machankura. Machankura is a custodial wallet that allows people to send and receive Bitcoin using USSD codes. First, Machankura started by translating Bitcoin literature into African languages ​​to eliminate the language barrier; but in the course of their work they stumbled upon a challenge. Due to the digital divide affecting Africans, most people in rural communities do not have access to smartphones and internet data, and this pushed Kgothatso to create an easier, less data-dependent way to move Bitcoin. Currently, Machankura lives in 9 African countries and the team is working to expand. Speaking to TechCabal, Kgothatso says adoption has been pretty good so far.

“We have over 1,000 users so far. One of the goals of the project is to be a full life cycle so that people can receive Bitcoin and spend. In South Africa, there are stores that allow customers to pay for purchases with Bitcoin vouchers. People can also buy and top up Bitcoin coupons without needing a smartphone or internet connection.”

According to him, Bitcoin is not just a complex idea that only applies to large sums of money. It is practical and can be used in various ways, also for everyday activities.

In a township in South Africa, a small group known as Bitcoin EkasI also use Bitcoin for daily activities. According to the co-founder, Herman Vivier, they have employees who earn in Bitcoin and use this Bitcoin directly in their communities. They set up Bitcoin wallets for merchants in these communities so they can receive payments in Bitcoin. A similar project is in the works in Nigeria, called Bitcoin Village, which promises to be a safe haven for Bitcoiners. According to the co-founder, Oluwasegun Kosemani, “you will be able to come here, spend bitcoins and buy goods from local people directly using the lightning network.”

The Bitcoin movement in Africa is not without its challenges. One of these is that a large number of people only see it as an opportunity to make quick money, ultimately leading them to losses.

According to Anita Posch, Bitcoin is so much more than a “get rich quick” scheme.

“Many people get carried away by the idea of ​​earning so many returns from Bitcoin and put all their money into it, expecting to become rich overnight, as we have seen in the last 6 months. If you want to invest in Bitcoin, you have to leave it there for at least three to five years. You can’t expect to have big profits tomorrow, only scams promise you that.”

Imasuen believes that this misconception surrounding Bitcoin use stems from a lack of information. But there is a simple solution that involves Bitcoin communities creating and distributing educational resources around digital currencies.