Though not a new thesis that Bitcoin price could rise drastically – up to $500,000 in the next 13 years according to the first investor in Snapchat – based on what comes out of developing countries, an analysis of some figures and trends as they relate to Africa comes to mind.
Jeremy Liew and Blockchain Co-Founder Peter Smith hinged their outlook for an increased interest in Bitcoin on remittance, uncertainty and mobile penetration. These factors, especially remittance, have much to do with Africa, whose composition of developing countries have what will strengthen the rise and use of Bitcoin for several financial purposes in the coming years.
$4 bln a year
Remittance is gradually becoming a major boost for Bitcoin use in Africa – as well as in parts of Asia and Latin America. The advent of new services that use the digital currency for the purpose of sending money from one point to another has started eating into the roughly $4 bln per year cost that banks and other institutions make from international transfers to Africa.
As earlier reported, many countries in this region – and in Asia – have the most expensive transfer rates in the world as well as bureaucratic processes that make sending and receiving money to and from loved ones a little difficult. This is a major reason why the promotion of the ease of use that Bitcoin brings is essential.