Is there a growing market for bitcoin in South Africa’s football community?

The earliest economic transactions involved swapping goods for other goods that were felt to have about the same value. Currencies made the process a bit more abstract: you could swap a certain piece of gold or silver for certain goods because everybody more or less agreed on the values of the coins.

Today, we can use virtual currencies or cryptocurrencies, which are even more abstract. Cryptocurrencies like Bitcoin aren’t linked to precious metals or any other goods but are purely virtual.

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CRYPTOCURRENCIES

We routinely use EFTs and credit cards to make and receive payments. However, as many people have discovered, even the most secure banking facilities can sometimes be hacked. If somebody gets hold of your credit card details, they can spend all your money and get you into debt.

However, with cryptocurrencies like Bitcoin, you have to buy your coins and put them into your e-wallet. You can only use the currency you have in your wallet, which means you can never pay on credit and run up debts. Moreover, cryptocurrencies are designed specifically to be used for secure online payments, which means the technology involved in cryptocurrency transactions is very tough to hack.

BITCOIN

Bitcoin was the first cryptocurrency, and it’s still the most widespread. It was launched in South Africa sometime soon after 2010, where a large portion of the population doesn’t have bank accounts or even ID documents. 

Bitcoin has a lot of potential value for making it easier for people to make and receive payments directly. Another benefit of using Bitcoin (or any cryptocurrency) is that it’s a lot cheaper. You only pay for what you’re actually buying, not for bank charges or other fees.

CRYPTOCURRENCIES IN AFRICA

The populations of African countries tend to be spread out over greater distances than the populations of European countries or US States. Many people live far away from banks or ATMs, in areas where there’s no Wi-Fi and where even cell phone signal is poor.

In fact, most people don’t have bank accounts or access to the Internet. For them, Bitcoin and other cryptocurrencies provide access to the world of online banking that those people would otherwise lack completely.

Even if somebody makes the trip to visit a bank, the process of transferring money at the bank is often complicated and slow. For this reason, the speed and security of Bitcoin transactions make Bitcoin a popular method of sending and receiving money in these countries. For example, there are now 10 Pick n Pay Stores around South Africa accepting Bitcoin.

REGULATORY AUTHORITIES

In Africa, South Africa and Nigeria are currently the two biggest economies – and these two economic powerhouses (especially Nigeria) are embracing cryptocurrency in a big way. In Nigeria, authorities temporarily banned cryptocurrency transactions because of the high rate of scams and fraud taking place. In South Africa, on the other hand, regulators responded by tightening security and introducing new regulatory practices.

Although Bitcoin itself is a pretty secure platform and currency, there are plenty of crooks out to scam you. In South Africa, however, the Financial Sector Conduct Authority (FSCA) keeps a careful watch over Bitcoin and other cryptocurrency exchanges and does a pretty good job of keeping fraud to a minimum.

BITCOIN IN SOUTH AFRICA

The South African Rand is often described as the world’s most volatile currency. High volatility weakens local currencies relative to other currencies – especially the dollar.

The volatility of the Rand is another factor contributing to the popularity of Bitcoin in South Africa because Bitcoin’s value isn’t tied to the value of the Rand. Moreover, where governments are seen to have ‘failed’ – like Zimbabwe and maybe even South Africa – customers often turn to cryptocurrencies as safer investments than fiat currency.

Even those who don’t want to go as far as investing in Bitcoin shares can still use Bitcoin for secure online transactions. At https://sportsbet.io/sports, you’ll find round-the-clock coverage of all the major sports, as well as exciting offers and promotions. Make use of this platform and enjoy secure and rapid Bitcoin deposits and withdrawals.

FINAL THOUGHTS

When the FSCA tightened its security in 2021, it led to a decrease in cryptocurrency transactions in South Africa. However, from the point of view of anyone who wants to use Bitcoin for football betting, better security should always be a good thing!

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