Why Many Africans Choose Bitcoin Over Banks

Africa today is witnessing a high number of people moving to the use of Bitcoin as opposed to banks. This is what I observe in my surroundings as a Nigerian guy, and I can also experience it in my life. Banks are not new, and Bitcoin is new, quick and quite different. This decision between the two is transforming the way individuals save, trade as well as even planning their future. Africans have numerous reasons as to why they prefer Bitcoin to banks and I will present some of them below.

The first reason is trust. Most Africans are not trustworthy on banks. The banks have collapsed in the past and individuals lost their money in some countries. In Nigeria, we read a story of accounts freezing or charges taking without having a proper explanation. This makes people afraid. Bitcoin on its part is not under the control of a single individual or even a company. It is a part of everybody using it. When you have your Bitcoin in your wallet you cannot be robbed of it. The confidence brings peace of mind to people.

The other reason is the high charges by banks. Banks in Africa charge on virtually all things, deposit, withdrawal, transfer, and even on simple maintenance in the account. At times, the prices are such that they undermine the worth of what you are saving. To the poor, such charges may be a huge burden. Bitcoin is different. You are able to send money to a person in another side of the world and incur a very minimal fee. The fee is sometimes practically nothing. This renders it cheaper and superior to a majority of Africans.

The third reason is access. A good number of Africans lack bank accounts. Villages might not have a bank branch as such. Open an account even in cities is a stressful experience, and there are numerous forms and identification required. Bitcoin has a solution to this issue as one only requires a phone and an internet connection. After downloading a wallet, you will be able to use Bitcoin. It is easy to make people who were not included in the banking system to finally enter the money world.

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Weak currencies and inflation is also another major cause. The local money is continuing to lose value in such countries as Nigeria, Zimbabwe and Ghana. Prices are increasing on a daily basis, and what you save today would be less tomorrow. People are tired of this. Bitcoin despite its bad and good days is considered to be a superior store of value than local money. By holding onto my savings in Bitcoin, I believe it is more secure than the naira which is continuously depreciating. The reason is why a significant number of young Africans will not want to deposit their wealth in banks but rather in the Bitcoin.

Bitcoin is also convenient in the cross-border trade and remittances. A lot of the Africans have relatives in other countries that remit funds home. It is very costly and time consuming to use banks or money transfer companies. Bitcoin makes it possible to receive the money within minutes and the price is not that high. Bitcoin is also used by traders who are importing goods. This is contributing towards business growth becoming quick and smoother.

The other one is liberty and authority. There are too many rules to follow in the case of banks. In some cases the bank can freeze your account without any prior notice. With Bitcoin you are the one that is in charge of your money. Your deal is not going to be prevented by anybody. This freedom is very appealing to young Africans who are fed up with the excessive amount of rules. I share the same sentiments since I prefer to have the freedom to control my own finances.

Technology and education are contributing also. The number of Africans becoming aware of crypto daily is increasing. There are people educating and sharing their experiences on social media, YouTube, and online groups. This will make Bitcoin more familiar and not as frightening. Bitcoin is increasingly used as the use of the internet increases. Almost all the younger generation that I know in Nigeria has heard about Bitcoin.

Naturally, there are also threats to Bitcoin. The price fluctuates a great deal. Scams are everywhere. Other governments do not feel content with it and attempt to censor it. Nevertheless despite these barriers, a good number of Africans still choose Bitcoin over banks. The advantages are competitive enough to ensure that people are interested.

Summing up, Africans prefer Bitcoin to banks due to numerous reasons and facts such as the absence of trust in banking institutions, excessive fees, unavailability, undervalued currencies, expedited trading, and the need to gain freedom. Bitcoin promises hope to individuals who believe they are being excluded by the old financial system. Personally, it has been an opportunity to make Africans to be in charge of their cash and their destiny. The banks are not going away but Bitcoin is already rewriting the history of money in Africa.