Why I Don't Invest In Blockchain in Africa
Read time: 3 minutes.
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Blockchain, the buzzword of the century.
But why am I holding off on investing in Africa's blockchain scene for now?
Here's my deep dive into the potential and the pitfalls:
First, let's explore the potential.
The African continent has a large unbanked population with limited access to financial services.
Blockchain technology could change that.
It can provide a more secure and accessible financial system, without the need for a middleman.
The potential use cases for blockchain in Africa are vast:
Some African countries have implemented blockchain-based initiatives.
For example, Kenya's BitPesa allows for cross-border payments using Bitcoin.
Ghana's Land Administration Project aims to use blockchain to improve land ownership records.
However, there are still several pitfalls in the African blockchain scene.
First, there is a lack of regulatory clarity.
Governments are struggling to keep up with the rapid pace of technology, which leads to uncertainty for investors.
Second, there is a lack of technological infrastructure.
Many African countries are still struggling with basic technological infrastructure, which makes it difficult to support blockchain technology.
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Third, there is a lack of widespread awareness and education about blockchain technology.
This makes it difficult for the general public to understand and adopt it.
Lastly, there is a high level of risk associated with investing in blockchain startups.
The vast majority of startups fail, and the African blockchain scene is still very new and untested.
While blockchain has massive potential in Africa, several challenges still need to be addressed before investing.
Many African countries lack the regulatory clarity to support blockchain, and the high risk associated with investing in startups means that caution is advised.
It's essential to watch the African blockchain scene, but investors should be cautious for now.
I obviously made a video where I explain why I don't invest in blockchain technology in Africa right now.
Let’s take a look at the podcast episodes:
Why I Don't Invest In Blockchain in Africa
In this episode, Eunice Ajim discusses why she doesn't invest in blockchain technology companies in Africa. She highlights the lack of painkiller solutions and the absence of successful use cases outside of cryptocurrencies. Eunice also mentions the challenges of fraudulent activity and unpredictable regulations in Africa. She emphasizes the importance of timing and specific use cases for blockchain technology. Additionally, she explains her investment focus on early-stage tech companies in Africa and the need to stick to her investment strategy.
Takeaways
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That’s it!
See you next Wednesday (or Thursday ????).
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What are your thoughts on the podcast episode?
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CEO & Founder @Scurdex Capital - Currently Fundraising
10 个月I like the last statement, "Blockchain saved the internet".
CEO & Founder @Scurdex Capital - Currently Fundraising
10 个月The best time to invest in a sector is at it's infancy. However, blockchain was not designed to be something restricted by geographic area. It's like internet. People started using it via VSAT in Africa even before government could begin it's regulation. If you are still thinking whether you should invest in blockchain startup or not, I can say you are almost late. The painful aspect of decisions like yours is that Africa will eventually become dominated by blockchain companies that are not necessarily located in Africa. I hope you are going to reconsider your decision on this.
Co-Founder and CEO PropOut Ltd. | Industry Leader and Innovative Force in the Global Real Estate Market | Democratising Access to Low-Average-High Value Digital Assets | I Post About #Real estate #Blockchain #SDGs #RWAs
10 个月Although you are very much correct in the frame of trends and digital timing. It's best we collectively ascertain the importance of, especially the blockchain technology to the general and already existing Internet technology trend at the moment. Not to always spread the untrue narrative of this tech tool, pushing away its benefits to mankind. Policies for blockchain products needs to be looked into and some use-cases drafted for the future of true decentralization, data ownership, and internet security to function within any nation, aspiring for a 100% digital economy. It's only fine we look for the advantages these tech tools have brought to make Internet use much more transparent and trust worthy. The essence of blockchain technology though. All misconceptions about blockchain, smart contracts, or cryptocurrency, or NFTs are as a result of its inception and early stage adoption techniques. Industry experts are working tirelessly to build sustainable practices for this technology. I can confidently say, blockchain bridged the gap between Internet identity and seamless remote/digitally-decentralized transactions. Blockchain saved the Internet
Just passing by to drop my 2kobos on the topic. Regarding technology, this shouldn't be part of the points. Government or Startups need not own a Cloud Infrastructure to create their solution, likewise Blockchain. Many Blockchain-as-a-Service platforms the governments and startups could use for their solution. Blockchain as part of a solution architecture needs no regulatory backing if there is an ICT or Cloud policy in place. As for literacy, the unbanked need not know the internal workings of a POS machine being used by a mobile money agent or an ATM before they can make use of it, likewise, the Blockchain.