For a few weeks now, there has been a panic wind over cryptocurrencies, bitcoin has lost half of its value in a few days and this is not to the delight of millions of savers and speculators on the continent. It is estimated, for example, that 11% of South Africans and 9% of Nigerians own cryptocurrencies. What are the dangers to cryptocurrency holders, especially in Africa?
In countries with high inflation in Africa, cryptocurrencies are often seen as a way to preserve the value of savings. In areas that are more stable from a monetary point of view, we see them as a tool for speculation and enrichment. But Bitcoin’s spectacular fall in recent weeks has reminded everyone of what economist Daniel Ouedraogo is.
“You have a lot of volatility that reflects the importance of risk. So you can go from single to double in a few days. So these are not safe assets. It is an illusion to think that investing in cryptocurrencies is a safe investment, he explains.
Prices are irregular because cryptocurrencies only follow a law, supply and demand. “Bitcoin is worth about a hundred times as much as four or five years ago, but already half as much as a few months ago. It is a course that develops irregularly, so no one ever knows if it will continue to climb or vice versa, analyzes Jérôme Mathis, professor of economics at Paris-Dauphine University.
One thing that buyers of cryptocurrencies should be aware of is that their savings can disappear overnight. In addition, it is recommended that in Africa, where cryptocurrency purchasing companies flourish, take some precautionary measures.
“To be able to collect savings, you must have a permit. And sometimes there are companies that collect savings without having a permit and therefore illegal. So if you decide to transfer your money to a company to buy crypts, the first thing to do is to verify that this company has the authority to be able to collect savings, Daniel Ouedraogo explains.
Cryptocurrency enthusiasts should also be wary of the risk of theft, because while cryptocurrency itself is tamper-proof, wallets are not. “We always present Bitcoin as an extremely secure currency. This is true, but around him there are many malicious hackers who try to catch the customer on entry or exit. The risk exists in several places.
Whether you use your computer or your mobile phone, you can have your accounts hacked and have your cryptocurrencies stolen, warns Jérôme Mathis. And there are also the marketplaces where they have made their transactions, they are not.
When you have a bank account, if your account has ever been hacked, the bank has taken out insurance that replaces us. For people who have cryptoassets, if they are stolen, no one will pay them back. There is no such insurance system that you can take advantage of when you are lucky enough to have a bank account. ”
Between theft and volatility, the use of cryptocurrencies therefore involves risks that are currently difficult to minimize. But the solution may come from Afro, one of the most promising Pan-African cryptocurrency projects.
