Why could the future of Bitcoin depend on African countries?

Endy Callahan

Jack Dorsey, the head of Twitter and Square, said: African countries will determine the future of Bitcoin in many ways. During a trip to the southern continent, he held meetings with several representatives of the local cryptocurrency community No. 1 in the world.

The popularity of cryptocurrencies in Africa

The popularity of digital coins in Africa is beyond the doubt. Among the five countries, population of which is most likely to search for bitcoins in the search systems, are South Africa, Nigeria and Ghana. All of them are on the African continent.

Jack Dorsey is known as a dedicated bitcoin supporter. Some believe that he is one of the few who managed to really understand digital money. Dorsey is a supporter of the Lightning Network, which provides an opportunity to carry out bitcoin transactions with a minimum commission.

It is predicted that by 2050 Lagos (the most populated Nigerian city) will grow into a metropolis with 32 million inhabitants, and by 2100 it will become the absolute leader in this indicator in the world. This will make possible to increase the cryptocurrency market share. The World Economic Forum expects that in the XXII century, more than half of the largest cities will be located in Africa.

There is no hurry among the national governments of African countries to win a position on the world cryptocurrency market. They fear the risks associated with their widespread distribution. A pleasant exception is Ghana, whose representatives spoke about the plans for the release of cryptocurrency of the CBDC Central Bank.

Powerful support for cryptocurrencies represented by Jack Dorsey

By most estimates, Dorsey’s fortune exceeds $ 5.3 billion. He managed to build a powerful financial technical company and develop a site that is at 11th position in the world in terms of attendance.

Jack Dorsey is not just building his image by supporting cryptocurrencies. He is known as a major investor in Bitcoin, and his company Square Inc implemented this cryptographic currency in its application.

Mr. Dorsey once said: “After adding bitcoin support, we tried to research the technology, as well as take the risks associated with its use. Square Inc became a pioneer in the United States, the first to offer to buy bitcoin, and also announced cryptocurrency No. 1 SEC.”

The head of Twitter supports the concept of digital money as a means of payment, and not a financial instrument, product or digital analogue of gold. He emphasized: “My friends often ask me for advice on investing in bitcoin. They want to make money on it, but not use it as a currency.”

Dorsey believes that the world needs a global currency that allows a huge number of people to receive quality financial services. He is going to satisfy their needs and make good money on them.

The owner of Square Inc is trying to have a balanced vision of bitcoin. He expressed dissatisfaction with the high fees, network congestion and low transaction speed. Dorsey not only complained that he was not happy, but invested $ 2.5 million in the company Lightning Labs, which led the development of updates for the bitcoin network. He said that the Lightning Network will certainly be implemented in the Cash App, this is only a matter of time.

Skeptics say that statements about the great importance of Africa and others are designed to draw attention to his person, to increase the value of bitcoin and the share of business in Lightning Labs. It seems that the great fortune and fame of Jack Dorsey quite suit him to risk his reputation due to the support of experimental technology.

Dorsey's Outlook

The head of Twitter is sure that bitcoin will grow into a single world currency, while it will not replace fiat money, but will be used by users of various countries as a means of payment. Dorsey soberly assesses the risks. He said: “I think in the future a native currency will appear on the Internet. Bitcoin has a chance to grow into it. The principles of its construction and difficulties overcome give reason to believe in this. Bitcoin appeared, developed and passed many challenges exactly in the Internet”.

If we consider the Internet as a single nation, then one currency should be used here. Ineffective convertings and various payment channels are simply not needed. The governments of many countries will not allow absolute monetary independence of commerce on the Web, so Dorsey's statements cause a lot of skepticism among many.

At the same time, Square and other similar fintech companies have the opportunity to occupy a processing niche, increase their presence in African and other markets. In modern conditions, users and merchants need a tool with a payment gateway for bitcoin transactions using the Lightning Network. Check out the article “Bitcoin - buy or trade?”. It will help to see what are the opportunities for making money on cryptocurrency No. 1.

What is the Future of Bitcoin

A number of experts believe that now bitcoin is at a crossroads. Cryptocurrency can go the way of obtaining legal compliance, which will make money transfers fully traceable, or go into the dark sector and ensure complete privacy. Partial legal compliance will not work.

Recently, bitcoin is increasingly treated as a product. For example, Bakkt and similar platforms are aimed at attracting institutional investors to the crypto industry. Thanks to it, customers can use bitcoin futures. This helps to develop the currency and secures the status of the product.

Undoubtedly, the growing popularity of bitcoin in Africa opens up additional prospects for the development of cryptocurrency in this region. In case of growth of large cities on the mainland, the number of active users will increase. Apparently, Jack Dorsey will try to make money on this. Such statements and millions of investments additionally indicate that bitcoin is the future. Why not to invest in the cryptocurrency number 1? Perhaps in the nearest future we will be able to see an impressive increase of its rate.