Bitcoin use in Africa has exploded in the past years, making it the world’s third fastest-growing Bitcoin economy. According to a 2021 Chainalysis report, the increase is over 1,200 percent, indicating that there has been an increase in Bitcoin activity by retail investors who store, remit, and exchange digital assets using various P2P platforms.
This was confirmed by Paxful’s Co-founder Artur Schaback, who stated that the crypto app has seen a rise in activity from African countries, particularly Nigeria and Kenya, with a 57 percent and 300 percent increase in the previous year, respectively.
According to him, the continent’s banking restrictions and hostile crypto legislation have created an enabling environment for the widespread acceptance of these digital assets, making it the world’s fastest-growing P2P Bitcoin center.
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.
In Africa, crypto popularity has never been higher, and it is frequently associated with peer-to-peer trading. In 2021, bitcoin transactions in Africa totaled over $100 billion. South Africa, Kenya, Tanzania, and Nigeria, four of the top promoters of cryptocurrency trading, prioritized peer-to-peer transactions. Additionally, chainalysis reports that retail crypto transfers amounted to 7% and 2% of the operations were from Africa.
While the numbers on cryptocurrency trading in Africa appear to be positive, the reason citizens pick cryptocurrency trading is not. The financial crisis that several countries are experiencing is a major reason for investors to seek out cryptos. For Africans who wish to conserve money and avoid inflation, cryptocurrency adoption seems like a way out. However, without good knowledge of crypto adoption, many people have fallen victim to theft and scams.