Why Bitcoin Deal in Africa Up to 40%

nBuzz comments: Global bitcoin prices have surpassed expectations, but before the global bitcoin prices hit a record high, African exchange Golix trading price has been higher than 40%. Such a high premium is due to the lack of liquidity in the African market, few sellers, and the near-impossible mining of power infrastructure to make bitcoin less available. And African countries are facing serious hyperinflation, where people have to turn to the current hot bitcoin.n
nTranslation: Annie_Xun
The global exchange this week, bitcoin prices exceeded 19,000 US dollars, with the exception of Africa. Africa is the second largest continent in terms of area and population density, and customers have paid the price since November. The price of the African Golix.com exchange has been up 40% above the rest of the world for months. Let us tell you why now.n
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Market liquidity in Africa is not goodn


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On November 15, Zimbabweans were reportedly required to pay $ 13,500 for each won bitcoin, which was “appalling” at the time. Bitcoin, which was still expensive last month, got cheaper this month, and the huge demand for digital currency pushed global prices up to $ 19,000. Africa Golix exchange premium still remain high. As a result, bitcoin trading prices slowly dropped from a high of 34,000 U.S. dollars to 32,000 U.S. dollars.n
The Golix homepage banner says, “Who is talking about us?” And media agency logos, including CNN, CNBC, Reuters, news.Bitcoin.com. Everyone in Bitcoin is talking about Golix, and they ask the same question: Why? Why Africa is so expensive to buy bitcoin? A recent Golix blog gives the answer, giving several reasons for the high premium.n
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Digitized resources in poor areas are scarcen


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Bitcoin transactions in countries such as Zimbabwe, South Africa and Nigeria are always higher, but only 10% above. One reason people are willing to pay for cryptocurrencies at above-average prices is the lack of liquidity in the African market. When sellers are scarce, participants can easily set high prices because someone who knows their order is still available. In countries such as Nigeria and Angola, which forced buyers to buy bitcoin at a 100% gain.n
As demand exceeds supply, coupled with hyperinflation of legal currency, over-priced bitcoin is seen as a better deal. Deflationary currencies can be valued at any price that can escape the storm. Another reason why Bitcoin is so expensive in Africa is power, and the Golix blog goes through.n
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Africa’s power vacuum statusn


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Africa is the world’s worst place to dig. It is hot, dusty and poorly constructed. There is a daily blackout in many parts of the country, totally unsuitable for mining. In South Africa, power companies routinely “unload” their electricity to ease grid demand through nationwide blackouts. The 2015 New York Times mentions that “Sub-Saharan Africa generates less electricity than South Korea and 1/4 of the country does not have productive power at all times, as the infrastructure continues to deteriorate.”n
Nigerian power supply is not coordinated, most rely on private generators. In other continents, cryptocurrency mining ensures a stable money supply to the exchange, and miners can make a profit by paying only for their expenses. While Africa lacks this miner group, almost no one sells bitcoin. In addition to the power problem, the network here is bad, with Africa basically relying on cell phone data. Finding a stable power source and network for mining is almost impossible.n
While bitcoin is not suitable for mining, there are still cases of high premiums, but at least one way for the people of Africa to earn their cryptocurrencies is to earn. This is a slow accumulation strategy, but at least not so noticeable. From Steemit to Yours.org, many websites reward contributors in cryptocurrencies. This process requires diligence and perseverance, but Africans are not afraid of the hard-working. Given the financial stability offered by cryptocurrencies and the possibility of extricating them from poverty, it is not surprising that Africa began to like bitcoin.n

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