Bitkoin Africa is a new Nigerian-based peer to peer Bitcoin exchange with impressive features and is targeted at the African community.
In this report we will consider the feasibility of Bitkoin Africa.
The innovation
Bitkoin Africa is just like Local Bitcoins, however it promises to add a feat features which make it one of its own kind:
- users can trade even without having an account
- users do not need to wait for Bitcoin block confirmations!!!!
- will support direct purchases from bank cards or bank transfers
- extremely cheap rates of only 0.5%
The threats
The innovation may be right but if the timing is wrong, it will ultimately fail.
Nigeria as a nation is certainly not ready for anonymous financial system. The previous government lost power due to accusations of massive corruption.
The trillion Niara loots
The corruption in Nigeria should be a world wonder. Some have looted over billions in cash, others have looted $90 billion while other have loots too much billions to count.
Infact, the amount of money looted in Nigeria is more than the entire market cap of Bitcoins and all crypto-currencies combined.
The current President's campaign on catching corrupt officials has retrieved more money than probably the half the current market cap of Bitcoins.
It is no wonder that Nigeria is the country where Bitcoin is the most searched word according to Google trends. Obviously, Nigeria is no place for anonymous financial transactions whatsoever.
The domestic terrorism
We were all here when Boko Haram kidnapped over 200 high schools girls, murdered hundreds of people and destroyed properties worth billions.
The incumbent dissident won power largely due to his promise to fight and destroy Boko Haram. His government may be succeeding and the group is being neutralized.
However, it is mainly due the the fact that they do not have one single thing: funds. Boko Haram is not a single group, they are affiliated to the formidable ISIS!
We all know that both of these terror organizations are not done, all they need is financial line. Should financial anonymity be introduced into Nigeria, both of these organizations will benefit from it!
The division front
The Biafra movement is a springing political movement among the Igbo tribe Nigeria who are calling for Independence from the Nigerian nation.
This movement has been around for a long time and it is both gaining momentum and becoming deadly. The government has also sworn that it will not bow to the demands of the group and is known for using violent measures against them.
Certainly this, is another movement which would love to use anonymous financial transactions. However, it will only result in infuriating the government.
The not so obvious catch
Bitkoin Africa is NOT anonymous. Users are either required to register and manually verify their accounts, not email addresses - excerpt for the quick trade option.
Again, there is the bank factor. They primary way to pay for transactions is by using a bank card or a bank account transfer.
Obviously there is no anonymity associated with bank transfer or bank cards purchases.
This privacy loophole in the system might cause the governments not to crack down on it as they can easily pin point every user and their associated activities on the platform.
It may not be anarchist friendly, but it will be good for business. Of all the features of Bitkoin Africa, this may be the most business savvy!
Trying to play anonymous will only get it used by;
- corrupt government officials who have been found guilt of laundering billions of dollars
- the local terrorist group who are in dire need of finances to revive their activities
- the Bia Fra movement which is seeking to divide the nation and get independence for the Igbo tribe
Eventually it will result in a complete government crackdown on Bitcoins and crypto-currencies.
What do you think?