The push to increase Bitcoin development and use in Africa and Central America is ongoing.
Despite the failures of Silicon Valley Bank and other institutions with exposure to cryptocurrency, the market appears to be comfortable with BTC. The impact on BTC’s market value due to these failures seems to be priced in, indicating positive momentum.
Bitcoin’s price consistently rises due to industry development and widespread user adoption. Two regions with the most potential for cryptocurrency expansion are Africa and Central America.
Around 50% of individuals in Africa, particularly in some of the poorest countries, are currently unbanked. Bitcoin offers access to banking services, making it a more stable store of value in countries with high inflation rates. Additionally, Lightning Network’s low-bandwidth and low-fee BTC payment platform is a game-changer for Africa.
“The Lightning Network is a layer-2 scaling solution for Bitcoin that can help to make Bitcoin more accessible and affordable in Africa. The Lightning Network enables users to send and receive Bitcoin payments quickly and cheaply, even with a low internet connection.”
Furthermore, transactions sent over mobile in Africa have soared by 39% to $700 billion in 2021, indicating a growing market with significant potential. In Central America, cryptocurrency is also gaining ground, with leading travel agency and Binance Pay partnering to enable crypto payments for travelers. El Salvador’s government has also officially adopted BTC, demonstrating the country’s financial strength.
Bottom Line: Bullish Factors for BTC
Despite the long crypto winter where Bitcoin’s spot price hardly broke above $17K, it has now emerged from the doldrums with favorable momentum, leading analysts to wonder when BTC will break above $30K again. BTC has a diverse and invested set of stakeholders driving its development and adoption in both developed nations and developing nations like Africa and Central America.