The Potential of Cryptocurrencies, Blockchain Projects, and Emerging Markets

Cryptocurrencies and Blockchain Exponential Growth within a Decade

Beginning with the introduction of Bitcoin in 2009 by Satoshi Nakamoto, cryptocurrencies and blockchain technologies have grown into opportunities to revolutionize and even disrupt multiple industries, especially those around financial services and payment.

Cryptocurrencies like bitcoin, ethereum, litecoin, and other cryptocurrencies saw their values rapidly rise against fiat currencies throughout 2017, which also saw rapid growth of companies raising capital through tokenization, especially via initial coin offerings (ICOs). Though the cryptocurrency market has struggled for most of 2018, the cryptocurrency market capitalization is nearly $400 billion USD with daily trading volume just over $40 billion USD as of April 25, 2018. Some project the cryptocurrency market to reach $1 trillion in 2018.

The Potential of Emerging Markets

Though the growth of cryptocurrencies and blockchain projects has been lead by developed countries in North America, Europe, and Asia, several emerging markets with underdeveloped or sometimes unstable banking have also provided growth with potential for wider adoption. In December 2017, the demand for bitcoin in Africa lead to trading at 40% premium, with some seeing cryptocurrencies and blockchain technology gaining real traction on a continent of more than 55 countries.

Though developed regions have seen cryptocurrencies and blockchain projects met with resistance from their well-established financial sectors and regulators, emerging markets have shown resistance to the potential of cryptocurrencies and blockchain technologies, especially with modernizing finance in underserved and remote continent like Africa. South Africa’s financial sector, for example, has been fairly enthusiastic about blockchain and in February 2018, the South African Reserve Bank (SARB) announced a program to trial blockchain potential in interbank clearing and settlement. South African consumers interested in cryptocurrencies has clearly grown rapidly, even in 2018.

Cryptocurrencies and Blockchain Projects Growing in Africa

As blockchain hubs have been developing in Africa, Blockchain workshops and accelerators, like South Africa’s Blockchain Academy and Nairobi-based BitHub Africa, have emerged to foster and develop blockchain projects and expertise, while blockchain companies such as Wala, BankyMoon, GeoPay, and many more have begun to leverage the potential of blockchain and cryptocurrencies across the African continent.

Cryptocurrency Exchanges Enabling Wider Participation from Emerging Markets

Providing Africa access to cryptocurrencies and crypto-tokens globally are digital asset exchanges operating on the continent, like Chankura Exchange.

Based out of South Africa with offices in San Francisco, Chankura is a digital asset exchange enabling people in emerging markets to buy and sell more than 20 cryptocurrencies, like Bitcoin and Ethereum. Chankura also lists crypto-tokens totaling nearly $500 million USD in market capitalization from 14 blockchain companies like Civic, Wala, Swarm, BitClaveand others that have collectively raised over $260 million USD via ICOs.

Chankura’s rapidly growing user base includes both new and seasoned cryptocurrency investors and traders alike from around the world, including those all over the African continent. Chankura currently provides South African users the ability to withdraw and deposit fiat currency (the South African Rand) to enable fiat-crypto trades, while facilitating cryptocurrency and token trades globally. Capable of handling high frequency and high volume trading, Chankura’s daily trading volume can sometimes reach nearly $10 million USD through more than 40 trading pairs, augmented by a user-friendly trading algorithm. Chankura will also be releasing a mobile app by May 2018, and will be feature eCommerce payment processing in the near future.

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Disclaimer: the above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.