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Why Ghana Should Consider Buying Bitcoin

Bitcoin’s potential price in the next decade could be in the billions once the cryptocurrency’s figure crosses six digits.

By Katie Williams

There are currently fears among economists in Ghana that the Cedi could depreciate to 6 cedis to a dollar by 2022. Ghana’s currency, which is pegged against the dollar, could experience some weakness due to the greenback’s expected decline against several major currencies this year. It has been forecast that the dollar could drop by up to 10% against the Euro. With cryptocurrencies being put forward as the future of finance, and as an alternative to volatile national currencies, Ghanaian investors may start to turn to cryptocurrencies like Bitcoin.

Ghana has a lot of investments linked to dollar reserves. If the dollar is projected to fall against any major currency by up to 10%, investors may risk those reserves in an emerging investment channel that would likely continue its appreciation this year. Investing in Bitcoin could be attractive due to current investor confidence.

Ronnie Moas, Catherine D. Wood, and the Winklevoss Twins — all of which are renowned investors with huge cryptocurrency portfolios — seem to be bullish with the cryptocurrency this year. Bitcoin’s prices are still high despite a slight dip at the end of 2017, and most investors aren’t selling their investments despite predictions of a bubble.

Bitcoin’s prices are expected to go as high as $30,000 (GH₵ 135,540). If the trend continues in the next 2 – 5 years, the prices could even settle at $100,000 (GH₵ 451,790). Bitcoin’s potential price in the next decade could be in the billions once the cryptocurrency’s figure crosses six digits.

Ghana has already made some moves into the cryptocurrency market that would provide a foundation if Bitcoin were to play a larger part in the country’s economy. Ghana’s first Bitcoin mining farm opened in 2016, which means that the country will already be in familiar territory if the cryptocurrency market in Africa expands.

While some governments now acknowledge Bitcoin as a legitimate alternative to regulated currency, many states are still cautious against using the cryptocurrency as a form of payment. This is due to the lack of regulations around the currency and its volatility.

However, investors are still holding onto their Bitcoins for two reasons: the asset is liquid in many parts of the world, and thousands of merchants are now accepting Bitcoin as payment. While Ghana doesn’t currently have any outlets that will accept Bitcoin, this could soon change as the cryptocurrency becomes increasingly used as a mode of payment. In the near future it is possible that shops could be soon accepting Bitcoin payments as they do credit cards.

A question that is being asked in Ghana is whether Bitcoin would improve the country’s economy and ease its poverty? Some economists in Ghana think so. In an article by Zero Hedge, it was stated that the Vice President of Groupe Nduom — an investment bank in Ghana — is encouraging Ghanaian investors to invest in Bitcoin given the country’s economic setup: “Ghana can have a lot of foreign exchange with the right investments in the digital currency”. Ghana’s poverty rate was cut from 52.6% to 21.4%, between 1991 and 2012, and Bitcoin investments in the country could potentially strengthen the country’s economy even further, through increased trade.

Image credit: Pixabay


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