In recent cryptocurrency news, African countries have welcomed ICO investments. It would seem that many with an interest in the countries that make up this fantastic continent hope ICOs can provide a platform for Blockchain based start-ups to flourish.
Bitcoin is out of reach for the ordinary African
While Bitcoin is the premier digital currency at the moment, the high-price this has brought about leaves it out of reach for most working Africans. In Nigeria for example, the average daily wage is around N800 ($2) – one Bitcoin costs N3 million! This is the case in many African countries and presents a real barrier to Africans accessing Bitcoin due to its high purchase value.
ICO’s to solve the problem
Although Bitcoin may be out of reach for most Africans, many are still eager to participate in the growing world of cryptocurrency investment. Initial Coin Offerings (ICOs) give them an affordable and accessible way to do just that and many are taking this chance up.
An Initial Coin Offering allows ordinary Africans to invest in projects that they feel have global value, but at a much cheaper level than Bitcoin. Although caution must be exercised to avoid scams in this area, it represents a superb chance for many Africans to get involved in the global cryptocurrency market.
ICOs to help African start-ups too
The other major benefit of ICOs in Africa is that they enable Blockchain-based businesses to raise capital and trade. Banks in many African countries will not provide loans for Blockchain-based businesses and so ICOs are an effective way of sourcing the investment needed.
The key point for Africa here is that education is needed around ICOs, as many Africans currently do not know what it is and the many benefits it can offer. Once the knowledge of what an ICO is and how it can help both businesses and people is shared, then it could well see more Africans getting involved.