There have been notable advancements in computing power and cryptography in the last decade, directly leading to the development of new forms of currency.
Ever since the Bitcoin cryptocurrency was developed in 2009, it has witnessed unprecedented growth across the world.
This digital currency has changed the way transactions are conducted in many e-commerce platforms, ultimately becoming the vanguard of digital currencies as being the most widely adopted and viable to date.
While countries in the developed world were the first to widely adopt the Bitcoin cryptocurrency, the developing world seems to be catching up fast.
Bitcoin is witnessing considerable adoption in a number of developing countries alongside Russia, India, and Argentina.
One of the major barriers to the adoption of the Bitcoin has been its volatility and the uncertainty surrounding the cryptocurrency.
However, it has since shown signs of stability and has been incorporated by many mainstream vendors.
This means that the Bitcoin is a major part of the world economy and is likely here to stay.
These reassurances have been essential to the drastic growth of the Bitcoin in recent years. Additionally, the Bitcoin technology is a necessity to developing countries where political and economic institutions have been exploiting the citizens; it has the power to disrupt government and financial systems, thereby handing financial autonomy to the people.
It is worth noting that increased internet usage seems to lead directly to an increase in Bitcoin usage.
Due to the widespread proliferation of mobile devices, more people in the developing world have access to internet services. It, therefore, follows that the number of Bitcoin users should increase as a result.
One of Africa’s top economies, South Africa, has witnessed a 1300% increase in internet usage in the last 15 years.
By June 2016, the country had approximately 28.5 million internet users – up from 2.5 million users back in 2000.
The Global Financial Inclusion Database documented a Bitcoin usage index of 26,879.96 in the country, despite the fact that South African internet users rarely engage in online monetary transactions.
Increase in the number of internet users is evident in almost all developing countries, and so is Bitcoin usage.
The benefits that the Bitcoin offers over the financial systems have resulted in the development of various e-commerce platforms.
Bitcoin makes transactions decentralized and therefore much easier. Bitcoin creator, Satoshi Nakamoto, touted the digital currency as an inventive way to circumvent the inadequacies of current banking systems.
Conventional credit card transactions take approximately three business days to get confirmation. Bitcoin transactions on the other hand take only seconds to be registered, and a maximum of 10 minutes to be added to the blockchain.
Additionally, credit card transactions impose considerable fees on transactions and the size of transactions that can be made are limited.
Conventional transaction methods also necessitate the involvement of several parties including banks, card associations, merchants, and payment processors.
Bitcoin’s distributed confirmation model gets around this expensive and time-consuming system, and these impressive aspects of the digital currency are attractive to internet users in developing countries.
The populace is now able to transfer and receive funds internationally at low costs, and the potential is increased given that a significant number of people in developing countries do not have access to the formal financial system.
In application, this means that it is easier for an individual in a developing country to trade using Bitcoin than conventional financial systems – this is especially evident in African countries.
As a result of low competition, banks in Africa charge the highest fees during international transactions. Bitcoin, being universal and decentralized with low remittance, is gradually drawing in more users in such countries.
Poor banking infrastructure in developing countries has also been noted as a cause of increased Bitcoin usage.
Internet-savvy citizens who find it inconvenient to access traditional banking services will seek out virtual systems such as Bitcoin, and as internet usage increases within the developing world, one can only predict that Bitcoin will witness more adoption.
A large percentage of countries that are most likely to adopt this cryptocurrency hail from the developing world.