In October 2020, Nigeria witnessed the biggest protests the country has ever seen, as thousands of young people came out to demonstrate against police brutality and demanded the dismantling of the infamous SARS (Special Anti-Robbery) unit. squad). The #EndSARS protests lasted about 2 weeks and were severely suppressed by the government, one of which was financial. From October 11 to 14, the Feminist Coalition, which had 14 women at the time, had its bank accounts suspended, forcing them to find other ways to galvanize the financial resources needed to support the protests. They found Bitcoin.
Bitcoin for a fair financial system
Anita Posch is a digital nomad currently residing in Zambia. She was a web designer for about 20 years before she came across bitcoin in 2017 and now works as a bitcoin educator. Anita is the founder of bitcoin for equity, a non-profit organization committed to educating people at the grassroots level about Bitcoin and its potential to empower them. On her motivations for her work, she said: “Many people are excluded from the global financial system because they are too poor, cannot access a bank or do not have all the necessary documents for it. Bitcoin is an equalizer here, giving everyone around the world the same access to the same financial system. We live in an unfair world, but bitcoin is an open and neutral internet technology that, like the internet, allows people to transact freely. It is neutral and does not take sides regardless of race, gender, nationality or social/financial status. No one can freeze Bitcoin transactions or interfere with them, which is a very useful tool in today’s social and political climate.
Money is an important component of a globalized world and must be mobile and flexible. However, it is often heavily regulated, which can limit access and use. Anita believes Bitcoin can provide decentralized and unfettered monetary connections.
“During my work, I met someone who told me that Bitcoin was the first time they could send money from Zimbabwe to Malawi. Previously, they couldn’t do it without a lot of paperwork or high fees.”
Bitcoin as a way to counter inflation
Marie Imasuen is a content creative media associate at Bitnob – a Bitcoin trading platform – and a Bitcoin gamer and podcaster.
Mary’s interest in bitcoin spiked in 2018, the year she realized that the interest she was receiving from her regular savings and investments was not enough to stave off inflation. This realization prompted her to look for investment opportunities that could protect the value of her money. Her search led her to Bitcoin.
Inflation in Nigeria has been north of 10% since 2018, with a current inflation rate of 20.95%. For young Nigerians, trying to build wealth while earning a thankless salary in naira is the future.
“If you look at the performance of bitcoin over the years, you will see that the rate of return on bitcoin is much higher than what the naira or your stocks give you. Bitcoin gives an average of 230% annual returns, and when you think about it in a country like Nigeria where the inflation rate is above 20.5%, it just makes more sense to invest this as an asset because it will fight inflation rates,” says Marie.
Mary is very involved in the Bitcoin community; she sees Bitcoin’s potential to help young people get the most out of their money. And Mary is not the only Nigerian with digital currency foresight, as Nigeria is said to have a Bitcoin adoption rate of 24.2%.
“The world is heading into a recession and Bitcoin is a great tool to protect your finances. As an asset, it is deflationary and its supply is limited, unlike currencies like the naira or the dollar which can easily be printed, putting them at risk of devaluation. Regardless of Bitcoin’s price drop, it remains the best performing asset of the decade and has yielded more returns than any stock or investment.
Bitcoin without Internet for people in rural communities: Machankura
Africa has the highest bitcoin adoption rate in the world, and one of the main reasons for this is the widespread education about the benefits of cryptocurrency. There is a vibrant Bitcoin community in Africa with members committed to spreading awareness of its potential and improving access to it.
One of them is Kgothatso Ngako, who is the founder of Machankura. Machankura is a custodial wallet that allows people to send and receive Bitcoins with USSD codes. At first, Machankura started by translating Bitcoin literature into African languages to eliminate the language barrier; but in the course of their work, they came across a challenge. Due to the digital divide affecting Africans, most people in rural communities lack access to smartphones and internet data, which prompted Kgothatso to create an easier and less data-dependent way to move Bitcoin. Currently, Machankura is present in 9 African countries and the team is working on its expansion. Speaking to TechCabal, Kgothatso says adoption has been pretty good so far.
“We have over 1000 users so far. One of the goals of the project is to be a full lifecycle so people can receive Bitcoin and spend. In South Africa there are stores that allow customers to pay for their purchases with bitcoin vouchers.In addition, people can buy and top up bitcoin vouchers without the need for a smartphone or an internet connection.
According to him, Bitcoin is not just a complex idea that only applies to large sums of money. It is practical and can also be used in different ways for daily activities.
In a township in South Africa, a small group known as Bitcoin EkasI also use bitcoin for daily activities. According to co-founder, Herman Vivier, they have employees who earn Bitcoin and spend that Bitcoin directly in their communities. They have set up bitcoin wallets for merchants in these communities so that they can receive bitcoin payments. A similar project is underway in Nigeria, called Bitcoin Village, which promises to be a haven for Bitcoiners. According to co-founder, Oluwasegun Kosemani, “You will be able to come here, spend your bitcoins and buy items from locals directly using the Lightning Network.”
The Bitcoin movement in Africa is not without its challenges. One of them is that a large number of people only see it as a way to make a quick buck, which eventually leads them to losses.
According to Anita Posch, Bitcoin is much more than a “get-rich-quick scheme”.
“A lot of people get carried away with the idea of making so many Bitcoin returns and putting all their money into it, expecting to be rich overnight, as we have seen over the last 6 months. If you are looking to invest in bitcoin, you need to leave it there for at least three to five years, you can’t expect huge gains tomorrow, only scams promise you that.
Imasuen believes this misconception surrounding the use of Bitcoin stems from a lack of information. But there is a simple solution that involves Bitcoin communities creating and distributing educational resources around digital currencies.