Monat: November 2021

Changpeng Zhao says challenges such as currency devaluation, difficulty in making cross-border payments and remittances, and the need for financial freedom are driving crypto adoption in Africa.

As the world’s largest cryptocurrency exchange by trading volume, Binance has continued to attract customers from across Africa, one of the fastest-growing destinations for crypto adoption.

Binance CEO Changpeng Zhao has reiterated that Africa offers unique opportunities, not just for the adoption of cryptocurrencies, but also for broader development of the industry.

Why Binance is bullish on Africa

The Binance chief’s comments in an interview with TechCrunch also revealed why the exchange remains bullish on the continent.

According to Zhao, Africa offers inimitable opportunities and is ripe for crypto adoption. He notes that crypto’s capacity to help solve problems related to cross-border payments and money transfer is seeing more and more people look to buy and use cryptocurrencies.

The number of the unbanked across the continent is also quite big, Zhao added, a fact that provides an opportunity for crypto adoption opportunities. Meanwhile, high unemployment has seen African youths venture into crypto and blockchain projects.

Asked to explain what could be fueling crypto adoption on the continent, Zhao said:

“I think it’s always a combination of many things,” before he went on to explain some of the catalysts towards broader adoption.

Changpeng on what’s fueling crypto adoption in Africa

The Binance boss, one of the most prominent personalities in crypto, believes that challenges such as currency devaluation have contributed to the rising adoption of crypto assets and stablecoins. Many people thus see cryptocurrencies as providing a better hedge against spiraling inflation.

Difficulties in making cross-border payments, or remittances, are another reason crypto is proving attractive to many Africans. Users do not just get to easily send money from abroad or across the continent but to also do so faster and at very low costs.

That’s not all. The need for financial freedom is seeing many people put their money into cryptocurrency investments, Zhao added.

“Much like Southeast Asia and Latin America, millions of people [in Africa] live below the poverty line. So it’s natural that they are interested in innovative, non-traditional ways of wealth creation.”

CZ, as he is known in the crypto space, recently said crypto needed proper regulation, adding that this will help the crypto industry build trust as it moves towards mass adoption. He also holds that effective regulation of the crypto sector in Africa will be critical to protecting consumers as well as spurring further growth.

Zhao also talked about some of the crypto and blockchain projects that could be greatly transformative for Africa. He believes infrastructure and systems in the sectors of GameFi, Sports Fan Tokens, and non-fungible tokens (NFTs) will play a huge role in transforming lives and offering financial freedom to many.

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• Meta Platforms (formerly Facebook) appears to have injected interest in the concept
• He notes that almost every facet of life today is going digital
• Gaming and big technology firms like Google, Apple, and Microsoft could see major gains tied to the Metaverse

We have seen several cryptocurrencies linked to the increasingly interesting Metaverse space make huge gains in recent weeks. Projects such as The Sandbox (SAND), Decentraland (MANA), and Enjin Coin (ENJ) have witnessed an upside driven by investor interest in the concept of a Metaverse.

Crypto and blockchain projects could be among those to benefit massively from the idea, but according to DBS senior investment strategist Daryl Ho, investors could do well to look at two key sectors likely to play a big role as the initiative takes shape.

In an interview with CNBC’s “Squawk Box,” Ho said that companies and platforms that are already deep in the digitisation space could have the front seat when it comes to defining the Metaverse and thus benefitting the most.

 “If you don’t already realize it, we are already moving somewhat towards a digital world, so the Metaverse is simply the next step, the next frontier,” Ho explained.

Meta leads other Big Tech companies in plans for a Metaverse

Recently, Meta Platforms (formerly Facebook), took a giant step in announcing plans for developing the Metaverse, and major companies around the world are looking to follow suit as the reality of a virtual world grows.

It’s with this perspective that the investment strategist says two particular sectors could take the lead and be highly profitable to investors.

He believes the computer gaming industry has the upper hand here, given the sector is already immersed in the virtual world. Notably, it’s in the Metaverse would see people live, work and collaborate and gaming platforms have represented this in many ways in their gaming projects.

“I think these are the companies [investors] should look out for,” he said, adding that the sector is likely to be the one that “shape[s] the metaverse as we know it.”

Ho also believes that big technology companies have all it takes to maintain a leading role in the Metaverse and will be big beneficiaries.

Apart from Meta, other Big Tech companies to watch out for are Google, Apple, Microsoft and game company Valve.

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• Michael Saylor says Bitcoin is unstoppable and will flip gold as the better safe-haven asset
• BTC will grow 100 times more to become a $100 trillion asset class
• The cryptocurrency will account for 5-7% of the global economy in the next decade

Microstrategy CEO Michael Saylor says in the end, the battle between Bitcoin and gold will be decided in digital gold’s favour.

In an interview with CNBC’s ‘Squawk Box’, Saylor noted that Bitcoin’s growth is set to see it become a $100 trillion asset class, with the 100x increase in its market capitalisation setting it ahead of traditional store of value gold.

Microstrategy is one of the mainstream companies that hold a significant share of Bitcoin since making its first purchase in 2020. The company is set to add to its current haul of 114,042 BTC, Saylor revealed during the interview.

According to him, the strategy is to “keeps stacking forever”, which implies buy more BTC whenever the opportunity to do so appears. He said that the next ten years will see the flagship cryptocurrency explode amid massive investor adoption, even as monetary indexes across the globe collapse.

A figure that is quickly becoming a respected voice in the Bitcoin community, Saylor believes BTC is on the path to toppling gold.

He added that the trajectory that the cryptocurrency is on will continue in the digital gold’s favour, with the precious metal set to be overtaken this decade.

He said:

“At the end of the decade it will have flipped gold, and then it will flip monetary indexes, a little bit of bonds, a little bit of real estate, a little bit of equity, and emerge as a $100 trillion asset class. So, 100X of where it is right now.”

This, he said, will happen despite the potential for regulatory headwinds. He points to some countries banning crypto or instituting regulations that limit investors.

In his view, there is no other asset class that would beat Bitcoin if an institution wants a safe haven asset. It is Bitcoin that offers the “ethical, technical, and legal safe haven” status that institutional investors want, he added.

Saylor also says the next ten years could see Bitcoin make up 5% to 7% of the global economy. In this time, the US dollar could have replaced most of the world’s national currencies, with the euro and the Chinese Yuan the only other global currencies.

Bitcoin, which plunged to a seven-day low of $55,861 this week, has recouped about 4% of the losses in the past 24 hours. At the time of writing, BTC is changing hands around $59,987, with intraday highs of $60,324 according to data from CoinGecko.

Gold, on the other hand, slipped 0.73% to close at 1,846.02 on 19 November.  

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