Browsing: bitcoin

The crypto uncertainty: Ethereum to surpass bitcoin in market capitalization. www.theexchange.africa
  • Crypto experts predict that Ethereum (ETH) will surpass bitcoin (BTC) in market cap, and new market entries could look at the former as a better purchase.
  • There is confusion among traders between buying, selling or holding (HODL) bitcoin
  • A whopping 67 per cent of the experts in the panel agree that it is an excellent time to buy bitcoin, arguing that the currency is experiencing its lowest price for this year

Many people, especially those interested in joining crypto trading as newbies, are utterly confused about whether to buy crypto in these bearish conditions. Bitcoin, specifically, has been experiencing a downward trend since the digital currency hit its highest in November 2021, valued at US$69,000. As of April 29, the price of bitcoin was resting at around US$38,799.

After the weekend doldrums, the market pulled a good turnaround on April 25. Despite four weeks of downward action, Bitcoin popped its

Central African Republic is the first African country to legalize bitcoin. www.theexchange.africa

The legal tender title of bitcoin in the country implies the acceptance of cryptocurrencies as a legal means of payment in any transaction through specific rules and regulations. This means that no vendor, trader or organisation can deny service payment through bitcoin as illegal.

This move comes after several countries in the continent have restricted trading in bitcoin, and most of them are lukewarm about the market.

The legalisation of bitcoin in the first African country will transform the country’s infrastructure and facilitate the blockchain technology and web3 applications to thrive. With legalising cryptocurrencies, the Central African Republic is moving towards a new path of technological development and economic performance. This dynamic field is popular among investors worldwide and ever-present as full-fledged assets in the portfolios of the world’s largest financial players such as Microsoft, Meta and Amazon.…

Environmental impacts of cryptocurrency mining. www.theexchange.africa
  • Cryptocurrency mining appears to be going in a different direction from the larger part of the world to fight carbon emissions
  • The United States- where 35.4 per cent of bitcoin mining takes place-releases over 40 billion tonnes of carbon emissions annually, the equivalent of 9 million cars
  • The University of Cambridge states that bitcoin generates about 132.48 terawatt-hours every year
  • However, the cryptocurrency industry is looking to reduce 100 per cent of its carbon emissions by the end of this decade

There has been a debate about bitcoin mining facilities moving to Africa. The continent has the biggest potential to generate renewable energy sources, and the facilities will reduce saturation in the West and Europe.

Why renewable sources of energy? Bitcoin mining counts at the top of the world’s leading carbon-emitting industries!

Cryptocurrency mining appears to be going in a different direction from the larger part of the world to

Central Bank of Rwanda head office in the capital Kigali. www.theexchange.africa

In October 2021 Nigeria became the first country in Africa and of among few in the world to issue a digital currency that was dubbed ‘eNaira’.

Financial experts say the digital currency issued by central banks cut transaction costs and increase financial inclusion.

Maurice Muhiza Rwamigabo, Head of Exploration & Coordinator at the Accelerator Lab (an innovation and technology lab) of the United Nations Development Programme (UNDP) in Rwanda, said in an opinion article titled ‘Should Rwanda adopt a national digital currency?’ that if Rwanda wants to restructure its financial system and position itself as an important player in the future global economy, it should systematically assess and take the steps needed to develop its own Central Bank Digital CBDC. 

“A CBDC would offer Rwandans a safe, free, and easy alternative to cash. It would expand financial inclusion by enabling more of the unbanked population to participate in the formal …

Bitcon falls by 29% as $2.5 billion of Crypto is liquidated. www.theexchange.africa

The Crypto market in the world is looking ugly.

The bitcoin price fell to a three-month low on January 10, accelerating the slide that started when the Federal Reserve ignited a broad sell-off worth US$300 billion. The bank cautioned that it might move more quickly than previously expected to reverse policy meant to reinforce the economy during the Coronavirus pandemic.

Experts predict that the latest crypto fall will persist for weeks in the Federal Reserve measures continue to be more aggressive.…

Bitcoin has been oscillating making it unsteady. www.theexchange.africa

As the rise and fall becomes more frequent and intense, it confirms that bitcoin does not follow a come -around -go-around trend.
In October this year, bitcoin drooped intensely before breaking the roof to hit a record high of US$66893.22. Investor psychology can be used to explain the trend in digital currency.

On a normal day, bitcoin investors use a fall in bitcoin worth as a go ahead to purchase, due to low prices at this time. The investors then wait to reach highs to sell off their accumulated assets; creating a loop of buying and selling.…

enaira

enaira2While others are still skeptical around the world, crypto currency is not only taking root in Africa but is now starting to bear fruit. The Central Bank of Nigeria has announced it launching its own national digital currency, the eNaira.

This announcement makes Nigeria the first African country to have a central bank-backed digital currency.

Central Bank Governor Godwin Emefiele says the currency will serve to accelerate financial inclusion in the country of over 213 million people. A lot of African countries are taking only baby steps towards allowing the use of cryptocurrencies and may are warning their public to be wary.

However, Nigeria is proving why it is Africa’s biggest economy with its Central Bank envisioning the crypto option will accelerate financial inclusion and even allow for cheaper and faster remittances.

“This digital money, the cryptocurrency, will allow us to have easier targeted social interventions, as well as help …

wa1

The International Monetary Fund (IMF), an organization which includes 190 countries, working to foster global monetary cooperation, in a blogpost titled, ‘Cryptoassets as National Currency? A Step Too Far’, believes that the adoption of cryptocurrencies as national currencies has more risks and cost that outweighs potential benefits.

Cryptocurrencies had an exceptional year in 2017. Both the technology and the value of virtual currencies have experienced historic breakthroughs. At the same time, the rise of these digital currencies is causing serious concerns in the world of cybersecurity.

The IMF blogpost starts by acknowledging the potential benefits of digital currencies saying that new digital forms of money had the potential to provide cheaper and faster payments, enhance financial inclusion, improve resilience and competition among payment providers, and facilitate cross-border transfers.

ALSO READ Zimbabwe’s energy sector to drive agenda at African energy week in South Africa

However, according to the post, the IMF …

cryot

th?id=OIPThe Central Bank of Nigeria has banned all cryptocurrency transactions as of February 5th 2021 citing terrorism concerns. The central bank is of the view that cryptocurrency transactions are been used to fund terror groups.

As a result, it has ordered all banks as well as non-bank financial institutions and all other financial institutions that deal in cryptocurrencies or facilitate payment for cryptocurrencies to stop with immediate effect.

The development comes after the Central Bank issued a warning back in January cautioning against the use of cryptocurrency.

Cryptocurrencies are volatile and risky since unlike in regular banking transactions, these are transactions that are irreversible. Further still, transactions are anonymous so you do not know who you are dealing with and also, there are no regulators for cryptocurrency dealings, it is all just you and a host of other people that you do not know trading online, to call it …