For a long time, South America was the main bitcoin adoption hotspot, but more and more eyes are now focused on Africa. The popularity of bitcoin on the African continent seems to be growing explosively lately, and peer-to-peer trading records are broken every week. Other sources also show that Mrbitcoinexchange.com is booming in Africa.
Bitcoin seems to be catching on, especially in Nigeria, a country with almost 200 million relatively well-educated residents. The country now accounts for about two thirds of all peer-to-peer trade in Africa through Localbitcoins and Paxful. But also in South Africa, Kenya and Ghana, the popularity of bitcoin seems to be greater than elsewhere on the continent. African peer-to-peer bitcoin trading has even grown so much that trade records are regularly broken, according to figures from UsefulTulips.com.
Africa may even have beaten South America as the main adoption hotspot, says Matt Ahlborg of UsefulTulips. In South America, a lot of peer-to-peer bitcoins were traded in hyperinflation-stricken Venezuela, but nowadays bitcoin trading in Colombia is also strong. Nevertheless, the Africans together now trade more than the South Americans. In Nigeria alone, about twice as much has been traded recently as in Venezuela.
The popularity of bitcoin in some African countries seems to be confirmed by Google Trends, where Nigeria regularly tops the list of countries where the keyword ‘bitcoin’ is most searched for. South Africa and Ghana are usually also high on this list.
Politics & economics
The sudden and explosive growth, according to Ahlborg, is partly due to the extra focus on bitcoin in connection with the recent Bitcoin Halving. Monetary inflation in the bitcoin economy halved. He also thinks that the political and economic conditions in many African countries also play an important role. They were not too good, but according to The World Bank, a large part of Africa is now in recession with one foot because of the COVID-19 pandemic.
That the economic and political conditions play an important role in the adoption of bitcoin on the continent is also confirmed in the Arcane Research report ‘The State of Crypto – Africa’. This suggests that while extreme cases such as Zimbabwe, plagued by hyperinflation and political instability, have been the focus of attention, the problems in many other African economies are also grave.