A report released by Citibank has ranked Kenya as the fifth (5th) highest Bitcoin holder per capita in the world. Likewise, Nigeria was ranked third while South Africa took the sixth position. Behold, if these results are trustworthy as we would like to believe, the future of Bitcoin appears to be bright in Africa.
As it was reported in details by Kenyan Wall Street, Kenya’s market share of Bitcoin as a percentage of gross domestic product (GDP) is slightly over 2%. Surprisingly, the USA, which happens to be one of the largest bitcoin markets in the world as mentioned in Futurism, ranks eighteenth (18th).
Another interesting fact from the report is its bearish stand with regards to Bitcoin and it even goes further to predict a possible collapse. In short, the interesting report is of the fact that the digital currency is “poorly designed.” However, it clearly recommends investment in alternative digital assets such as ether (ETH) and ripple (XRP).
In this piece of write-up, it is worth pointing to the fact that if Bitcoin were to collapse, the countries with the largest market share of Bitcoin as a percentage of GDP would experience significant wealth effects. “If a bubble for an essentially ill-designed product pops, values drop to zero. […] If bitcoin were to flop, those countries would already experience a meaningful negative wealth effect,” the report states.
What does this report mean to Kenyans and Africans as a whole?
In releasing this report, the Citibank just like most banks around the world reveals its positiveness about the blockchain technology. However, what does this report mean to Kenyans and Africans as a whole? This report indicates that digital currencies are potential wealth creation assets. In addition, it is pointing to the fact that Africans can also benefit if they invest in altcoins. Also, it gives a positive view of blockchain technology, thereby reminding Africans of its potential benefits in resolving some of the current economic, social, and political problems that the continent is facing.
Note that the Blockchain has the ability to offer solutions such as transparency, security, and faster financial transactions. We can as well say that the Blockchain technology can effectively be applied in digital voting, audit trials, land title registration, clearance and settlements, data management, creation of secure digital identities, and offering cheaper and faster remittance services. We can lastly say that this report comes in to motivate the African Population that could still be thinking of cryptocurrencies as assets meant for the Western world.