Efforts to expand Bitcoin development and adoption in Africa and Central America continue.
So the market seems quite comfortable with BTC after the failures of Silicon Valley Bank and other crypto exposed. After shocking customers, markets, and regulators early last month, their effect on BTC’s market value seems built into the momentum.
As the crypto yield system crashes and banking has been unable to keep the price of bitcoin low, something is pushing it higher. It is industry development and user adoption happening all over the world. Two of the most promising regions for crypto growth are Africa and Central America.
In Africa, home to some of the world’s poorest countries, around 50% of residents are unbanked today. This means that they have never had a checking account, credit card, or access to banking services, and Bitcoin fixes this in several ways.
Growth in Africa and Central America, favorable winds for Bitcoin
Andrew Lokenauth, author of the popular Fluent in Finance newsletter, recently wrote, “Many African countries are experiencing high inflation, making Bitcoin a more stable store of value.” He pitches Lightening Network’s low-bandwidth, low-cost BTC payment platform as a game-changer for Africa:
“The Lightning Network is a Layer 2 scaling solution for Bitcoin that can help make Bitcoin more accessible and affordable in Africa. The Lightning Network allows users to send and receive bitcoin payments quickly and inexpensively, even with a weak internet connection.
Lokenauth also reports 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 SMS without internet.
The size of the market and the acceleration of its growth are incredible. Mobile Network Mining Data Reveals Money Transactions Sent by Mobile in Africa increased by 39% to 700 billion dollars in 2021.
Cryptocurrency is also taking hold in Central America. Earlier in March, a major Latin American travel company and Binance Pay teamed up to enable crypto payments for travelers.
Meanwhile, President Nayib Bukele’s government in El Salvador has chided cryptosceptic naysayers with its official adoption of BTC. The government has recently exhibited its financial strength with the repayment of one of the two outstanding bonds of $800 million.
Bottom Line: These are bullish factors for BTC
Bitcoin’s spot price had barely topped $17,000 for months at the start of the last quarter. As the second quarter approaches, it seems 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 rise above $30,000 again.
Bitcoin continues to defy its obituaries and evade excessive US regulation. The price is showing strength and uptrends as BTC has a large, diverse, and carefully invested set of key stakeholders. They continue to drive development and adoption in first world and developing countries in 2023.
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