Improving the Network Effect for Cryptocurrency Adoption in Africa
As a Cryptocurrency Enthusiast, I’m enamored by the importance of network effect in building effective blockchain businesses.
The survival (or death) of the promising blockchain and its various use cases especially Cryptocurrency is hinged on its adoption rate.
If I have Bitcoin and no one recognizes it as a scarce and valuable means of exchange, no one will be willing to trade with me for it. Which in turn becomes useless.
This article by John Biggs on Coindesk succinctly explains the power of networks in facilitating the growth of Cryptocurrency such as Bitcoin.
With opened networks comes faster adoption and with faster adoption comes important use cases that propels the growth of the technology.
When a head-to-head comparison is done of Blockchain networks and social media networks. Blockchain and Cryptocurrency trails behind Social Media.
The average monthly users of the biggest Social Media platforms such as Facebook, Twitter and Instagram and their adoption rate trumps Cryptocurrency and Blockchain adoption.
As a firm believer of the power of Cryptocurrency to reform finance and open up commerce in developing economies such as Africa. I see it as extremely important to look critically at the network effect and use the power of rapid adoption to make blockchain and cryptocurrency a reality.
How can this be achieved?
By investigating and writing extensively about use-cases. It is important to adopt best practices that have worked elsewhere and adapt it for the African continent.
For example, BitPesa has done some groundbreaking work in reducing remittance cost to Africa.
By showing the use cases for example how BitPesa makes it easier for African businesses to trade and how bitcoin can be readily accessible to everyone, people become more attuned to Blockchain adoption.
Nano is deploying mobile payments solution to create products for the African market.
Africa has potential and the potential is reflected in the success of our ability to adopt important networks that will lead to the growth of the continent and the adoption of the necessary tools and having open conversations about these tools and the benefit they bring to people.
Blockchain companies and digital exchange currency companies have a thing or two to learn from social media companies. By focusing on expanded networks, encouraging referrals and user adoption.
