Topic: Limitations of Bitcoin Utilization in Africa - page 2. (Read 553 times)

I had a discussion today with someone who showed me a website for mining BTCs on phone. I laughed myself to stupor. To make matters worse, one has to provide personal information like ID or passport digits. I bluntly told the person to desist from visiting such a site. It's a waste of time and one's data could be sold on the dark web.
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A good of those wanting to get quick Bitcoin, one thing is sure, he'll get he's information exposed to malware attack's.
Folks should do them research before jumping in! Good you cleared that up.

Besides of the "problem" that people often only can buy small fractions of 1 BTC (which becomes a non-issue as soon as people are educated enough about BTC), I think purchasing power differences are generally a problem in so-called "developing" countries (like @franky1 also wrote). A solution may be to offer freelance work for BTC which can be sold globally, this is working quite well in South America for example. Of course this needs knowledge and equipment (a PC) not everyone has in these countries.

I think this is very different depending of the region you're living in. The main problems, apart from financing, are the climate (as you already wrote) which makes cooling more expensive, and grid quality/the risk of blackouts. However, many regions in northern and southern Africa have a big potential for solar energy, which could be used for grid-independent mining farms.

The best locations are seen in this map - in addition to the Sahara there are also excellent regions with probably better (i.e. cooler) climate in Namibia/South Africa and Kenya/Tanzania: SolarGIS Solar Map Africa and Middle East
(dunno why I can't embed it directly from Wikimedia Commons here - is there some kind of blocking active there?)

@franky1 I have been observing your style of writing for over many weeks now and I could see that you are very scrupulous at what you write with enough elaborative context. I like you maturity and the manner you often arrange your words, quite amazing.

I believe that you are more convinced that Africa is a weak continent. Yes Africa is poor, it's crystal clear but you are bringing it to the table in the worse manner. Dude, this is too thick to drop it in this form. You know there are so many non african countries that could be worse than what you have described entirely. You can't compare the entire African continent to the world most successful, richest, developed and well coordinated country like the United States. This is of no match...lol!
America seems to be the greatest when it comes to power, economy, dominance and it will looks unacceptable if you compare with Africa.

You are very correct, FOREX
FOReign
Exchange
It evolves exchange of currencies of different countries which are paired to each other. Just like the way GBP is pegged to USD. With this, we can easily compared them and know their values based on FOREX.
We have other currencies that are paired to USD like; USD/CAD, USD/AUD, USD/YAN, USDNGN, USDGBP etc. The African currencies have no strong value compared to the USD, that is why things always go wrong due to bad governments and lack of quality education.

I rest my case!

This was a roadblock before but not today since you can spend 1 sat/vbyte and confirm in ten to 30 minutes. Some people consider the confirmation time as a limitation.

You mentioned about buying altcoins instead of btc so I'm curious what these alts are. Ethereum is still a very popular chain among developers of new projects and we all know that transaction fees there are insanely high. Won't that be conflicting if they buy erc-20 tokens?

The issue with high transaction fees isn't an exclusivity of african continent. And it wouldn't be a limitation if financial standards in Africa weren't too low... That is the root of the issue. If you have money to invest in bitcoin or to work with bitcoin and earn an income from it, you will have money to pay for transactions fees.

I think the main limitations right now are the financial one, as mentioned, the lack of educational background/understanding on bitcoin usage and lack of access to technological gadgets and devices, which proportionate a much better comprehension and learnship not only on crypto subject, but in every aspects covering technological matters.

If every african had access to internet, a desktop or smartphone, they would easily understand bitcoin can be bought in fractions, while learning how to use an exchange by seeing how it works on practice.

Wouldn't you? What is the reason why so many new projects and already existing projects have to switch or create a bridge to bsc from eth network? If a high transaction fee is not part of the limitation I don't know what is.
It is a major limitation and bear in mind that not everyone has the technical knowledge to use LN or adjust their trans fees as many bitcoiners do. And you are talking about the developing countries where every penny counts, how many people do you think can afford to spend btc daily with such volatility!

I had a discussion today with someone who showed me a website for mining BTCs on phone. I laughed myself to stupor. To make matters worse, one has to provide personal information like ID or passport digits. I bluntly told the person to desist from visiting such a site. It's a waste of time and one's data could be sold on the dark web.

its not just poverty.
even if africans all had a 'living allowance' to cover rent, food and bills. there is still a wide gap between an african with a house and an american with a house.

this is not about a poor african in a tin-shack vs an american in a brick mansion. this is if you compared an african in a brick house with same floor-footage. same sofa same food in the kitchen as an american. it would require multiple times that 'value' of living standard for an african to buy the same amount of bitcoin as an american. even if both people had the same 'standard of life'

this gap is caused by FOREX
the exchange rate.

yep. african income and outgoing's is set at a rate that is lower than americans
even if you can buy a loaf of bread in africa for pennies, in america the same loaf of bread would be valued at more.

so while bitcoin is measured at near $30k where by 0.1 is enough for 2-3 months of living allowance/income in america.. that would equate to years of income/living allowance in africa.

meaning taking years to buy 0.1btc even if they had the same property size and same furnishings and same diets

Access to internet is now  among of the human rights. The countries in Africa are still suppressed by their rights and thereby knowledge and opportunity to become rich country. Not sure why Elon Musk is not doing it on all Africa since he is from Africa, he has Starlink so instead of putting up on other countries why not give his best to the country where he is from.

China had built a field of windmills and solar panel in the desert. Africa should be able to do something like this with Elon Musk help.  Probably enough that they could have mining farms.

Poverty is a huge problem on the African continent, and you can't invest money if you are barely making ends meet and have no extra money, so it is an obstacle to buying Bitcoin. An obstacle which the op missed, I think, is Internet penetration. How are you supposed to use Bitcoin if you don't have Internet access? And in many countries in Africa more than a half of the population don't have it. So serious economic and infrastructure problems must be solved first, and then people might get to use Bitcoin.

I disagree. I've only seen very few people who think they must buy a whole bitcoin and the reason why a lot of people buy shitcoins is because of the promises that shitcoin pumpers give them. Promises that they will never receive from bitcoiners. Fake promises telling them that they are going to become rich since their shitcoin is starting at $0.000001 and is going to reach bitcoin price!!!
This is also not specific to Africans. It's happening everywhere.

This could be solved by investment and effort. It doesn't have to be a massive farm, they could start small by installing some solar panels and import some ASICs and get to mining bitcoin then slowly expand their business if they are good at managing money and their business.
I've seen others do it in poorer countries with far more issues like Venezuela.

Not really considering the fact that 99% of the time bitcoin fees are very low.

I can agree with you that there is a lack of education in many parts of the world, not just Africa about bitcoin. But the possibilities especially on a big semi developed continent are huge. As you can store money easily on a mobile wallet and send it with relatively low fees to other countries with no control whatsoever.
For everyday payments it is maybe not the best because of those fees and the confirmation time.
Maybe you can set up an FAQ website in an African language and guide them how to buy some, because I think many people only learn about bitcoin after their first receive some Sats.

Africa having a population of over 1.4 billion people, surpassing Europe and USA, saw the rapid increase in the usage of p2p  transactions since the Covid pandemic,with countries like, Nigeria, Ghana, South Africa, Kenya and Togo topping the chart. Despite that(Increase in peer-2-peer, usage of digital currencies) they've had some limitations to the utilization of Bitcoin in Africa which have been a pain in the neck for them citizen's! Some of them are Viz ;



•Price / Financial Limitations.
•Enlightenment.
•Banks and Poor Governmental support.
•Ignorance / Information hoarding.
•Education / Basic amenities.
•Ignorance / Information hoarding.
•Mining of Bitcoin.
•Resistance to Change.


PRICE / FINANCIAL LIMITATIONS:

The average African ( Narrowing down to the average Nigeria ) does not have 15 million spare to buy 1Bitcoin, that's because the average african thinks it's a must to buy 1 Bitcoin not fractions of Bitcoin as they're yet to understand that Bitcoin can be bought in fractions  ( Satoshi's ). The price alone is chasing away investors,that's why you see the shift in focus to alternative coins that have lesser value's.

ENLIGHTENMENT:

Assuming, those teaching friends, buddies and pals about Bitcoin can enlighten them bro's that, Bitcoin can be bought in little fractions of Satoshi's rather than telling them to buy altcoins and altnets that will outperform Bitcoin. The information is out there but not properly encoded to be decoded. Shouldn't pay listening ear to influencers who hype a particular project for profit sake.


BANKS /POOR GOVERNMENTAL SUPPORT:

Reasons for merging them both are because, Government controls the bank, so it boggles me to see and hear from folks that banks championed the ban of Bitcoin. Most government in africa care less, as most if not all, are outdated, old standard sniffing scumbags and scavengers who knows few if not nothing about the Benefits of Bitcoin.


EDUCATION / BASIC AMENITIES:

You don't expect folks who've got no good literacy skills to pick up interest for Bitcoin as they'll find it as a very cumbersome load too carry.
Most African countries in Africa can be classified as developing, where in some cases, the poverty rate is about half the the population of a given country.
We've also got electricity and bad networks as one of our challenges and with the income level as per the minimum wage for most africans, those at grass roots are unable to go through like on the pay grade not too think of getting the necessary device to be Crypto enabled.


IGNORANCE / INFORMATION HOARDING:

Like I said , the information might be there but not properly shared or encoded to be decode. Ain't it disheartening when you see and hear people hurdle information about Bitcoin ?
Ignorance plays a key role in the limitation of Bitcoin in africa, as there are hundreds of million People who hasn't heard about Bitcoin.


MINING OF BITCOIN:

Due to weather, and lack of cheap electricity, I think this are another limitations in setting up a Bitcoin mining farm, as getting one down here would cost them huge sum's for Asics, coz they'll thrive in hot ends. Improvisation can be done with the sun for solar energy though.

Some older generations are also over reliant on them local fiat,(Not saying they be scared of new technologies though)as they find it difficult to adapt to change ( older generations )as they find some interface as scam or difficult too keep up with the current trend's. But if Bitcoin can be used in them day to day activities then, then it shouldn't be more hard or complex to utilize.

Will you consider High/ Low transaction fees as a limitation also ? Someone school my ass!