Bitcoin use cases in African countries continue to expand with the latest one being its use as an alternative source of retirement income. On a continent plagued by high inflation and unstable currencies, bitcoin, which is decentralized and censorship-resistant, is seen “as a safer source to contribute to for retirement.”
According to a local report, this shift towards bitcoin is more profound in countries like South Africa where traditional pension funds “have historically had issues of fraud and instability.” The report, which relied on an analysis by a crypto startup, Yellow Card, explained:
This has been especially noted in countries such as South Africa, where a high number of users reported utilising Bitcoin savings as a safer source to contribute to for retirement.
Nevertheless, the report still notes that bitcoin is yet to be proven a reliable investment for a long-term horizon. Consequently, the report cautions long-term savers to consider all the possible scenarios and options when planning for retirement.
Meanwhile, the findings of the analysis by Yellow Card reaffirmed bitcoin’s status as “a cheaper alternative for sales and remittance payments.” Similarly, the analysis also found that many users see “bitcoin as a viable investment and see trading as a way to build a supplementary income.”
According to the analysis, it is such use cases that help to explain the “unprecedented surge in cryptocurrency purchase and usage on the African continent.”
Do you agree that bitcoin has now become an alternative source of retirement income? Tell us what you think in the comments section below.
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Author: Terence Zimwara