Can Emerging Cryptocurrencies Boost The Economies of SA?

The hype of cryptocurrencies and the well renowned “bitcoin” seems misunderstood by many. This has caused a havoc in our nation and many people have changed their perception in the way they view these great assets – which could transform our unstable economy and stabilize it in a sustainable manner.

A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control, meaning they are developed as codes by teams who build in mechanisms for issuance (often through a process called “mining”) and other controls.

The current traditional financial system makes sending money across borders expensive, time-consuming and often unreliable; hence it’s important to reduce the cost and complexity associated with moving money seamlessly across the continent.

As a nation, we must understand that cryptocurrencies are the solution to our economy that seems to be fluctuating more on the losing side. Take for example the South African Rand: If it happens that our rand falls and completely loses its value, investors who had invested based on the strength of our rand will obviously pool out and look for better alternatives for investment outside SA.

That’s when cryptocurrencies come to the rescue!

Countries like Venezuela and Zimbabwe are already bypassing corruption and inflation through cryptocurrencies. Though, this is mainly done on peer to peer basis, since legislation interferes with exchanges from crypto trading especially in Zimbabwe.

 However, constraints will always inspire solutions, hence the rise of altcoins which are free from government manipulation and control. Altcoins are currencies modelled after bitcoin which present themselves as modified or improved versions of bitcoin.

South Africa is no stranger to this trend as cryptocurrencies are emerging all over the country, including the Undercover Millionaires Currency (UMC) which was launched by a great South African entrepreneur Sir Louis Jr Tshakoane. What entices investors to this type of currency is its unique backing up of pure gold, and gold being a mineral that hardly loses value – the UMC might end up netting up most investors.

 The great thing about the digital age is that it has inspired innovation and progression. The world is moving fast and everyday something new is invented to make our lives better. My message is not meant to lure people to invest but to change the negative narrative that has been told to most South Africans about cryptocurrency. Cryptocurrency is the solution…

By Bandile Nyongwana

6 Responses

  1. Kelvin Teboho Moletsane says:

    Amazing narrative brother ,this is such a wonderful and powerful way of putting back the power in people’s hands

  2. Ayanda says:

    Thid is really eye opening. Thank you Bandile

  3. Theo says:

    This is a very powerful insight.
    Thank you for sharing this with us.

  4. Solomon says:

    When Zimbabwe’s President Robert Mugabe was deposed in November 2017, after 30 years in power, many hoped that the economic decline he had overseen would soon be reversed. But, a year and a half later, the economy is showing no signs of recovering, thanks to an ongoing currency crisis. Could a blockchain-based cryptocurrency be the cure for what ails Zimbabwe?

  5. Alex says:

    When Zimbabwe’s President Robert Mugabe was deposed in November 2017, after 30 years in power, many hoped that the economic decline he had overseen would soon be reversed. But, a year and a half later, the economy is showing no signs of recovering, thanks to an ongoing currency crisis. Could a blockchain-based cryptocurrency be the cure for what ails Zimbabwe?

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