Within the African region of the world, Cryptocurrency is growing at an accelerated pace. The global trend and acceptance of the digital alternative not only opened avenues for selected regions. The pandemic undoubtedly catalysed the mass exposure to cryptocurrency even more, as the towering trading volumes of crypto data from all across continental Europe, Asia, Africa, and Americas certainly suggest the favour of the digital revolution. However, one question in particular that many of our readers will have been wondering is, what exactly does Malawi hold in terms of its blockchain future?
We have seen time and time again, a large number of crypto enthusiasts first getting involved with the world of Blockchain, through their involvement in eSports gaming online. CSGO, amongst other platforms, holds huge responsibility for the reasoning behind such a large take up amongst communities, where cryptocurrency is involved. For our readers who enjoy playing CSGO and have explored the gambling integration for the gaming experience, we have CSGO Empire Codes just for you. And yes, Crypto wallets are accepted!
Why is Cryptocurrency becoming really popular in Malawi?
Malawi’s adoption of cryptocurrency is down to multiple reasons. While it is not the most saturated region within the region of Africa, it is one of the top 5 regions to have adopted cryptocurrency overall (particularly Bitcoin). It is believed an estimated 500 million USD dollars has been traded in cryptocurrency within the top 5 regions of Africa- Malawi included.
The remarkable spike in trading cryptocurrencies within the region, is down to the following reasons listed down below.
Unstable regional currencies
Currencies within the rapidly developing regions of Africa, are extremely volatile in comparison to the rest of the world, such as America and Europe. Adopting cryptocurrency is the best way to avoid the depreciating value of Kwacha. The inflation to fiat currency that is occurring all over the world makes the African region very vulnerable when holding their own unstable local currency. Cryptocurrency is the best buying power for those that fear the diminishing buying power of the local Malawi Kwacha.
Easy Access
Blockchain provides such easy access to its users. It is no secret that most online ecommerce and other tech related sectors, have all merged their platforms towards blockchain technology too, making buying power relatively easier no matter where you are in the world. All you need to do is integrate your wallet into the merchant’s platform, and you can buy anything and everything with very little difficulty. The buying power from cryptocurrency is unprecedented, as the security that comes with cryptocurrency means that consumers can always guarantee that their purchase will be honoured and never miss-levied.
Remittance
For individuals who are working outside the region of Malawi, sending money back and forth to relatives and family will always be an issue due to the depreciation of the Kwacha. Additionally, it has always been relatively expensive too, to ensure that a transfer will be made across the seas to the region of Malawi, meaning individuals will always pay more to ensure the transaction is passed through bank networks safely. Cryptocurrency on the other hand ensures that individuals can ensure that their transactions can be processed with no costs that are often tied with banking processing. By using cryptocurrency alone, those who transfer money across nations can guarantee to bypass the usual 10% markup fees that are attached with transfers to Africa.
What are the risks?
Of course, as with anything, risks are always known with any aspect of finance. Currently, cryptocurrencies with lower market cap, come with higher volatility. Meaning, should locals choose to invest into various cryptocurrencies, the risk of loss over return is very high. This has always been a topic up for discussion when blockchain is concerned and while other cryptocurrencies like Ethereum and Bitcoin are less volatile in comparison, there are still no guarantees for fixed pricing.
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