2020 is such a great year for the African cryptocurrency space and the world at large. Cryptocurrencies date back to 2008 with the launch of Bitcoin. Today there are over 5,000 crypto assets and tokens worldwide. Although Bitcoin remains the king of the crypto kingdom, there was mass adoption of other crypto assets this year.
The African Crypto Space
Africa is a vast continent with beautiful sight and scenes all over it. However, there is wide-spread poverty among people that live in Africa. Furthermore, most African countries are experiencing inflation and currency devaluation. Therefore, it is very hard for average citizens to afford comfortable living and also invest. Thus, crypto and blockchain adoption has been very slow in Africa some couple of years ago. In 2020 however, cryptocurrencies became the talk of the town. Many people especially youths, started giving preference to cryptocurrencies over fiat currencies.
For example, in Nigeria, during October, there was a nationwide protest against police brutality. Donations towards the movement were firstly through traditional bank transfers. But, in a bid to disrupt the movement, the government block accounts of donation receivers. Thus, donors turned to make payment using Bitcoin. As a result, 40% of the total $400,000 received as a donation was through Bitcoin.
To reduce the impact of inflation on their funds, Africans have also turned to cryptocurrencies to stabilize the value of their funds.
In 2020, the African Cryptocurrency space greatly improved. Binance, the world-leading crypto exchange held Masterclasses in 40 countries across Africa. These Masterclasses educated 70,000 Africans on crypto trading via physical and virtual training.
Covid-19 Improved Crypto adoption
Covid-19 had more impact on 2020 than 2019. However, rather than crumble the African crypto space like it did the African economy, it improved it. People had to stay at home and make transactions from their homes. Banks couldn’t let too many people in their halls. Therefore, the alternative people turned to was Bitcoin and other cryptocurrencies. As a result, Bitcoin there was a large increase in the transaction volume across exchanges.
Binance reported that over $280 million worth of crypto assets were traded via P2P transactions in Africa this year.
Paxful also reported improvements in African crypto adoption from its end. The company said Nigerians account for some one-quarter of its 1.3 million customers. Paxful also became a partner of some African crypto merchants like BitLipa
2020 Crypto Bull run
As a result of institutional investments, Bitcoin’s price went as high as $24,000 this December from $9,000 in January. Bitcoin made new all-time-highs towards the end of 2020. Meanwhile, and analysts said, there is a chance there will be no big dip in its price. Since the bull run is a result of institutional investments and hedge funds.
2020 is a big year for the African Cryptocurrency space. We look forward to more crypto adoptions across Africa in 2021.