An Optimistic view on Crypto & Africa
Hello frens,
We heard that many of you may be feeling down and despair due to the bear!
We say despair not, for In the midst of a turbulent crypto bear market, sentiments may be low, but it's during these challenging times that we must remind ourselves of the true essence and potential of cryptocurrency. Beyond the market fluctuations, crypto stands as a beacon of hope, promising a future of financial inclusion, economic stability, and boundless opportunities for the Global South, especially Africa. This is not just about weathering the storm, but about holding firm to our belief in a decentralized future, where Africa harnesses the transformative power of crypto to redefine its economic narrative.
The Great Promise - Crypto & Africa
The reason why we are bullish despite the bearish sentiment is because, for Africa, Crypto offers a viable alternative to the current hell of a financial system which is Fiat. Within the Fiat Monetary System, there’s no hope for Africa. it’s a system designed to be forever extractive and detrimental to African nations and their people. If you want to understand how hellish the Fiat system is, we recommend you read Alex Gladstein’s “ Structural Adjustment: How the IMF and World Bank repress Poor Countries and funnel their Resources to Rich ones!”, link is at the bottom. Take for example,
‘’The World Bank, which claims to raise living standards in developing countries by channeling resources from developed nations, has been doing the opposite. Initially, in the 1960s, there was a significant flow of resources from rich to poor countries, supposedly to aid development. However, by 1982, the flow of resources reversed, with an annual net flow of funds from poor to rich countries. This has escalated from an average of $30 billion per year in the mid-to-late 1980s to trillions of dollars per year today.
The IMF and World Bank do not aim to alleviate poverty but to enrich creditor nations such as the United States, United Kingdom, France, Germany, Japan etc. Between 1970 and 2007, poor countries paid $7.15 trillion in total debt service to rich ones. In 2012, developing countries received $1.3 trillion, including all income, aid, and investment, but more than $3.3 trillion flowed out, resulting in a net outflow of $2 trillion to the west.
From 1960 to 2017, $62 trillion was drained from the developing world. Structural adjustment policies by the IMF and World Bank, instead of ending exploitation and unequal exchange, have significantly increased them. Since 1970, the external public debt of developing countries has risen from $46 billion to $8.7 trillion. Countries like India, the Philippines, and the Congo now owe their former colonial masters 189 times the amount they owed in 1970, having paid $4.2 trillion on interest payments alone since 1980.
The IMF and World Bank's operations are not merely due to mistakes, waste, or mismanagement, but are designed to enrich creditor nations at the expense of poor ones. The continuous flow of funds from poor to rich countries since 1982 is not a "mistake," but an intentional or unconscious structural outcome, which has impoverished billions of people” - excerpt.
Beyond this heinous extractive set up, African currencies have also been subjected to massive manipulation, devaluation, and inflation. The result is a constant devaluation of wealth and a decrease in purchase power. In essence, it’s almost impossible to make it in such a system! it is therefore not surprising to see African countries dominate the poorest countries list each year with no optimistic view of things becoming better in the Fiat System.
This is why we are permanently bullish on Crypto and it’s Great Promise for Africa. Since it’s inception we have watched as some great innovation and systemic disruption play out in real time such as Bitcoin being a better form of money, Ethereum unlocking a boundless internet of value and how these innovations have begun to have a cultural, philosophical and social impact on the younger African generation. thinkDecade explores this extensively in his last publication on Blocscribe.
Here are are some main points from the piece. we highly recommend you read the full article.
Fix the Money, Fix Africa
Bitcoin offers better money, hard and sound! Built on the principles of hard/sound money, Bitcoin is money crafted to solve the horrors of fiat money. With bitcoin serving as a sound monetary base for many Africans, a new wave of financial opportunities and freedom has unlocked. E.g, transacting across borders in a way previous not possible.
An Internet of Boundless Value: Web3, Ethereum and the EVM Ecosystem
Ethereum has served as a foundation for a decentralized, autonomous, and interconnected web that has unlocked boundless value creation and capture. it provides infrastructure for the development of decentalized application that operate without central authorities, censorship or single points of failure. This has opened up a world of possibilities for financial innovation, enabling the creation of decentralized exchanges, lending and borrowing platforms, prediction markets, and much more. Africans can now invest into global financial entities in the form of dApps to build wealth in a way previously not possible. with NFTs and other innovations on ethereum, Africans are now participating in a global economy by creating and capturing value without getting restricted.
→ Nigerian NFT Artists Are Making Their Global Mark in $200 Billion Market
The Individual Sovereign African: Signaling Awareness Socially, Culturally, and Philosophically
Crypto's impact in Africa extends beyond the realm of finance and technology. It is signaling a profound shift in social, cultural, and philosophical paradigms, empowering individuals to embrace sovereignty and challenge existing systems.
The crypto revolution in Africa is more than just a technological or financial shift. It's a force of transformation that's reshaping social dynamics, safeguarding cultural heritage, and sparking philosophical changes. By embracing crypto, Africans are signaling their readiness to challenge the old guard and carve a path toward greater sovereignty, empowerment, and self-determination.
So tell us, HOW CAN WE BE BEARISH?
On the contrary, Crypto’s biggest nemesis is crypto itself. despite challenges such as regulation, infrastructure deficit, government pushbacks, and lack of proper education, High transaction fees, and scalability issues and privacy are the major significant roadblocks to widespread crypto adoption.
But this will be a conversation for another day.
We got something nice for you on our podcast. thinkDecade & Abidemi delves into today’s issue in this episode. Pretty insightful episode.
Spotify
Apple podcasts
Further reading
📖 The Great Promise - Crypto & Africa
📖 Fix the Money, Fix the World!
Action Zone🎬🎬
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