Bitcoin Shakes up the Money Supply in Central America and Africa (Op-Ed)

Efforts to expand Bitcoin development and adoption in Africa and Central America are ongoing.

So the market seems very comfortable with BTC after the failure of the Silicon Valley bank and other cryptocurrencies. After shocking customers, markets, and regulators earlier last month, their impact on BTC’s market cap appears to be set in motion.

Even though the cryptocurrency’s yield system is broken and bank operations are unable to keep the price of Bitcoin down, something is pushing it higher. This is industry development and user adoption happening all over the world. Africa and Central America are among the most promising regions for cryptocurrency growth.

In Africa, where some of the world’s poorest countries are located, about 50% of the population is unbanked today. This means that they never had a checking account, credit card, or access to any banking services, and Bitcoin fixes that in a number of ways.

The growth of Africa and Central America, the tailwind of Bitcoin

Andrew Lockenoth, author of the “Fluency in Finance” investor newsletter, wrote recently, “Many African countries are experiencing high rates of inflation, which makes Bitcoin a more stable store of value.” He touts Lightening Network’s low-bandwidth, low-fee BTC payment platform as a game-changer in Africa:

“The Lightning Network is a Bitcoin Layer 2 scaling solution that can help make Bitcoin more accessible and affordable in Africa. The Lightning Network allows users to quickly and inexpensively send and receive Bitcoin payments, even with a low internet connection.”

Lokenauth also reported that Lightning Network developers in Africa are working on ways to expand BTC L2 there. For example, Kgothatso Ngako created an app in South Africa that allows users to send BTC via text message without the Internet.

The size of the market and the speed of its growth is incredible. Mobile network operating data reveals financial transactions sent via mobile phone in Africa rose 39% to $700 billion in 2021.

Cryptocurrency is also taking hold in Central America. Earlier in March, a leading Latin American travel agency and Binance Pay partnered to enable crypto payments for travelers.

Meanwhile, the government of President Nayib Bukele in El Salvador has been refining skeptical crypto naysayers with its official endorsement of BTC. government recently show off Its financial strength with the repayment of one of two outstanding $800 million bonds.

Conclusion: These are bullish factors for Bitcoin

The spot price of bitcoin had barely broken above $17,000 for months at the start of the most recent quarter. Heading to Q2, it appears out of the woods after the long crypto winter. In fact, the price momentum over the past month has analysts now wondering when BTC will break above $30,000 again.

Bitcoin continues to defy obituary writers and avoid US regulatory overreach. The price is showing strength and upward trends because Bitcoin has a large, diversified and carefully invested group of key stakeholders. They continue to drive development and adoption in first world and developing countries in 2023.

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