Although cryptocurrency popularity in Europe has been limited, the situation is different in Africa, where crypto adoption is increasing every day. The world’s third-largest continent is welcoming to cryptocurrency users. According to statistics, it was adopted at a rate of over a thousand percent in 2021. As a result, Africa is now officially the continent with the most usage of Bitcoin and other digital currencies.
Since the debut of Bitcoin, the first decentralized token, in 2011, cryptocurrencies have expanded at an exponential rate. By 2021, the cryptocurrency had risen to an all-time high, with Bitcoin trading for more than $68,000. The crypto market, on the other hand, has been on a three-month losing trend.
Crypto popularity in Africa has never been higher, and it is frequently associated with peer-to-peer commerce. In 2021, the African continent had around $100 billion in bitcoin transactions. These peer-to-peer transactions were given a higher priority in nations such as South Africa, Kenya, Tanzania, and Nigeria, which are among the top four advocates of cryptocurrency trading.
According to Chainalysis, a cryptocurrency-based analytics platform, the range in retail crypto transfers was 7%. According to the site, Africa accounts for over 2% of Bitcoin transactions.
While the numbers on cryptocurrency trading in Africa appear to be positive, the reason citizens pick cryptocurrency trading is not. The financial crisis that various countries are experiencing is a major cause for investors to seek out cryptos. For Africans who wish to conserve money and avoid inflation, cryptocurrency adoption seems like a way out.
In Africa, cryptocurrency popularity is centred on gaming, which is facilitated by web platforms that allow for deposits and withdrawals. People, on the other hand, are embracing cryptocurrency as a means of payment between businesses and even as a sort of passive investment. However, the widespread use of cryptocurrencies on the continent has resulted in a variety of scams.
Africans have favoured Bitcoin over their local currency, depending on the country in which they reside, which is beneficial to the market. However, many people have been victims of theft and fraud due to a lack of understanding of crypto adoption.
Kenya and Nigeria are the two most advanced countries in terms of crypto activities. However, this has spurred national regulators to enact legislation to limit their trade.