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Over time, it is normal for rapidly expanding markets to show increasing interest in them. But will they succeed in crypto-desert regions in countries in Asia and Africa?
If you have not heard about cryptocurrency or digital currency in recent times, you might not have been paying much attention. Currently, cryptocurrencies are a topic of much interest in almost all the world. Its popularity has risen in recent years and can certainly be considered a topical issue.
Applications, platforms, trading makes accessing the crypto active market easier and as simple as pointing and clicking.
Currently and around the world, there are an attractive and beneficial cryptocurrency and crypto active projects underway. The success of these projects goes hand in hand with the development of technology.
There is much talk of virtual money in developed or developing countries (cryptocurrencies are a phenomenon with a purely western origin). However, over time, it is normal for rapidly expanding markets to show increasing interest in them.
But will they succeed in crypto-desert regions in countries in Asia and Africa?
Africa: The Promised Land of Cryptocurrencies.
Africa is called to be the next promised land for cryptocurrencies. The conditions of the African continent are very favorable for virtual currencies. South Africa as a leading economy and could lead this digital transformation and thrive in the world of cryptos.
The African continent is home to 54 countries. It is the second-largest and second-most-populous continent in the world, just behind Asia in both categories. Africa’s growth prospects may seem lucrative for investors, but their inflation problems could hamper growth.
When inflation rates fluctuate too much or increase dramatically, the purchasing power of consumers is significantly reduced. This is where cryptocurrencies come into play. According to the United Nations, the high inflation outlook and the improvement of the economic situation have created the ideal environment to foster cryptocurrency markets in Africa.
The UN publication “Africa Renewal” states that many African citizens use Bitcoin as a tool to counteract hyperinflation in their country. The report says that Botswana, Ghana, Kenya, Nigeria, South Africa, and Zimbabwe are among the African countries that have the highest Bitcoin penetration rates, while other countries such as Uganda are also taking interest in cryptocurrencies.
The popularity of the term “Bitcoin” in the Google search engine in the last twelve months shows surprisingly that half of the first ten results are African countries.
A recent “Statista” poll shows that South Africa, along with Turkey, Brazil, Colombia, and Argentina were among the countries with the highest cryptocurrency ownership, almost 20% of respondents reported that they have used or owned cryptocurrencies in 2019.
A similar study of “We Are Social and Hootsuite” indicates that 10.7% of Internet users in South Africa have cryptocurrencies, the highest proportion in the world.
South Africa is considered the second-largest economy in Africa after Nigeria, which has experienced much faster growth in recent years. The South African economy is more diversified, while Nigeria is more dependent on the energy sector.
In the past, South Africa has focused its economy mainly on the mining and agricultural sectors, but in recent years, the country has advanced focusing on tourism, financial services, and the technology sector. Also, South Africa is generally more accessible to foreign capital, which offers the country a slight advantage when it comes to investments.
Africa has laid the foundations for the cryptocurrency industry to thrive in its territory, its high inflation economy fosters demand for value preservation, and cryptocurrencies could be the answer to African consumers. South Africa, in particular, could become the bearer of this cryptocurrency transformation.
Asia: Dominator of the global cryptocurrency ecosystem
Asia is the owner of the largest cryptocurrency market in the world according to the study published by LiveCoinWatch that notes that 75% of crypto transactions are carried out in the region.
Statistics show that Asian investors are more informed about virtual currencies than their western counterparts. The region has also assumed a leading role in the regulation of the sector. It seems that the rest of the world has much to do to catch up with the most populous continent.
Although China advanced a ban on the use of virtual currencies in the country, other nations such as South Korea and Japan have taken a softer stance regarding the new currency. Also, many companies accept payments in cryptocurrencies. This has helped boost the use of virtual currencies in the Asian territory.
In Asia, several countries have accepted the use of cryptocurrencies. South Korea, Japan, Thailand, and the Philippines are among the countries that have tried to introduce regulations to protect investors in virtual currencies and encourage their use.
Asia is home to the vast majority of cryptocurrency exchanges in the world. Also, some of these exchanges are among the largest by trading volume. This is driven by the existence of a favorable environment that promotes the operations of these businesses.
In the picture, there is no indicator that Asia is about to give up the new digital technology economy. The combination of regulations for cryptocurrencies and extensive knowledge of the sector continue to make Asia the ideal place for investors.
Asia has played a decisive role in improving the use of cryptocurrencies. The rest of the world is lagging concerning the enjoyment of the benefits associated with virtual currencies. The world has much to learn from Asia to ensure that an environment conducive to the Crypto sector is established. These facts leave no doubt that Asia is a key piece in the global crypto ecosystem, we could even say that it is perhaps the most influential.
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