Bitcoin is a currency that is known worldwide, especially in South Africa. The issues surrounding the country’s economic state has led to the people to rely on Bitcoin to get by. Luckily, Bitcoin’s influence is massive in South Africa, which has made daily lives for South Africans easier.
South Africa and Bitcoin
Over the years, the relationship between South Africa and bitcoin has expanded, with a recent surge in popularity in early 2018. Besides the trust South Africans have for bitcoin, there are certain factors to take note of.
What is the Current State of South Africa?
This is a question that is worth acknowledging for many reasons. South Africa is in a state of internal turmoil, with various issues in the country that contribute to the current status of the country.
What are the Different Issues Plaguing South Africa Right Now?
There are many issues plaguing South Africa today, with most of them having varying degrees of effects with the country’s economy.
o Environmental Issues
One of the main issues that are affecting South Africa as of now is the environment. Issues such as deforestation, pollution, oil spills, and land degradation are worth noting.
o Economical Crises
The economy of South Africa is one of the most affected and notable aspects that has increased the country’s drive for Bitcoins. Issues like hyperinflation and poverty have caused a drastic change in the country’s day-to-day dealings.
South Africa has been suffering from corruption over the years. Everything from the judicial system to the police has had an effect on the country’s economy, which has caused the country to suffer from the negative effects of hyperinflation.
This is one of the most recent economic issues in South Africa. As of September 2018, South Africa has entered into a technical recession due to the GDP drop of 0.7%, only after a decrease of 2.6% during the first quarter of 2018. This has caused industries such as agriculture and forestry to suffer a sharp decline.
How has Bitcoin Helped the Country So Far?
While the country has suffered many economic and political crises over the years, the bitcoin technology has helped South Africa improve and still continuing to do so. It has also allowed the blockchain technology to make their impact on the country, with the emergence of blockchain hubs being a factor to the improvement in South Africa. Peer-to-peer marketplaces such as Paxful have also contributed to the steady rise of South Africa’s economy, with at least two schools built with the #BuiltWithBitcoin initiative from the platform, as well as allowing users to buy bitcoin with PayPal and other payment methods imaginable.
How Can Bitcoin Help Ensure South Africa’s Future?
Bitcoin’s presence has helped ensure the improvement of the present state of South Africa’s economy. An article written in 2017 has stated that there will be an estimated 500 million mobile phone subscribers by the year 2020. This can ensure that Bitcoin’s influence will still be seen and used in the country, which can also help ensure the future of South Africa’s economy.
But, there is no definite way for anyone to tell what the future holds for South Africa. With the bitcoin technology a big enough influence on the country, those without access to banks and those who are suffering from the effects of poverty will surely improve their lives at a steady pace.
What is the Driving Force of South Africa’s Appetite for Bitcoin?
Despite every issue that the country has suffered from in recent times, the main driving force for their appetite for Bitcoin has always been the perseverance and determination of the people. Not only do they know how to earn money with bitcoin, but they also make use of the technology bitcoin can provide. With how big bitcoin is in South Africa, the economic issues around the country will decrease in time.