Increase in Bitcoin Adoption and Possible Reduction of Bureaucratic Friction in Developing Economies
Several cryptocurrency market participants are clamoring for greater adoption. This is because it will promote the philosophy of cryptocurrencies worldwide. Recently, authorities worldwide took steps to regulate cryptos thereby clearing the way for more adoption.
Bitcoin is gaining traction in developing countries worldwide even as numerous individuals consider the leading cryptocurrency as an investment vehicle. Continents that appear to be at the center of the fresh sway of adoption for Bitcoin include Latin America, Africa and Asia.
Matt Ahlborg featured in the Tales from the crypt podcast, discussing the way Bitcoin is helping people in countries such as Kenya in connecting to an international economy and the current issues encountered in such regions regarding further use of the top cryptocurrency.
According to Ahlborg, there are no sufficient local regulations in such regions towards the facilitation of financial communication with the global market. Hence, due to such situations, the self-sovereign characteristic of Bitcoin as well as its borderless convictions becomes beneficial.
He noted that at the moment, people are embracing Bitcoin market in developing economies due to several bureaucratic frictions that they are not interested in dealing with.
Recently, Arcane Research released a report that highlights the recent growth of Bitcoin volume which appears to have spiked specifically during the current worldwide economic crisis. The report revealed the steady increase in Bitcoin’s weekly volume in the country since the end of last year and its rise has been more drastic in the previous few months of this year.
Ahlborg noted some of the downsides to the mass adoption of Bitcoin in the country. Among them is the effect of Ponzi schemes and scams. Such malicious schemes related to Bitcoin which lure people to invest are quite common in Kenya, and they become strengthened during bulls markets thereby swindling numerous individuals, he added.