In Africa, the story being told about Bitcoin focuses on its value as a store of wealth. It provides a store of value during currency destabilization and is an escape route from traditional financial institutions. While those are indeed completely valid points, they create an overly simplistic picture. They entice with false hopes of fortune to come. At the same time, a continent ripe with promise fails to address urgent challenges. We need to be realistic.
Can "Store of Value" Feed Families?
Let's be blunt: store of value doesn't pay the bills. It doesn't put food on the table. It doesn't educate children. For a young African entrepreneur trying to build a business, or a family struggling to make ends meet, the promise of long-term gains is cold comfort. They need solutions now.
I’ve met them in crowded Lagos marketplaces, the innovation centers of Nairobi, and the fishing communities of rural Zambia. They are tech-savvy, eager for opportunity, and intensely creative. They understand the potential of Bitcoin, but they're asking a critical question: How can I use this to improve my life today?
And this is where the “store of value” narrative breaks down. That’s like advising a person who’s dying of thirst to buy a water well for their grandchildren. All well and good—after all, that’s a nice long-term solution—but it doesn’t help them with their urgent day-to-day predicament.
Unfortunately, our democracy continues to fail this generation on a daily basis with legacy systems. Corruption and a lack of opportunity are shackling them. Speculators, on the other hand, need a better reason to believe in Bitcoin beyond that speculative bubble. They want to be shown clear benefits, practical implementations and above all, yield in the real world.
Hedge Funds Are Eating Our Lunch!
Here's a hard truth that might sting: Hedge funds are already making a killing off Bitcoin yield, while the average African is left watching from the sidelines. The bottom line is that institutional players are employing ever more sophisticated strategies to increase their returns. These are basis trades, derivatives and futures arbitrage, targeting 5%-20% returns. And they're doing it with Bitcoin, the very asset that's supposed to be democratizing finance!
Think about that for a second. The Bitcoin that was created to liberate the individual is being subverted to make the rich even richer. Picture finding a gold mine buried in your own backyard. Except then it turns out that some other entity has already constructed a picket fence around it and is charging you simply to get a glance!
This is not only unjust. It’s a failure of innovation. Africa has the potential to be on the forefront of a new Bitcoin economy. It will forever squander this opportunity if it stays shut out of the yield-generating opportunities that institutional investors are drawn to.
- The Problem: Retail investor are locked out of Bitcoin yield
- The Solution: Democratization via DeFi
The bright spot amid this disturbing landscape is that solutions are coming into view. New protocols are under construction to move institutional-grade yield strategies on-chain, putting Bitcoin to work as collateral for automated futures arbitrage. Most importantly, they’re democratizing access to these strategies, allowing retail investors to benefit without requiring them to have specialized expertise.
Time to Build, Africa!
This is a call to action. We can’t do it without our developers, entrepreneurs, and forward-looking policymakers. Now they need to focus on building and deploying Bitcoin yield-generating solutions specifically tailored to the African market.
Imagine a future where young Africans can use their Bitcoin holdings to earn a passive income, fund their education, or start a business. Picture a future where DeFi protocols are actively connected with local community businesses, generating new streams of economic impact and giving more power back to underserved communities.
This isn’t only self-interested profit-making. It’s about working toward a more inclusive and equitable financial system. It’s time to equip Africans with the knowledge and skills they need to become masters of their own economic fortunes.
The future of Bitcoin in Africa isn’t merely about buying and holding. It’s about building. It’s the latter – using Bitcoin as a common connective tool to build a more prosperous, fair and equitable future. It’s about awakening an entire generation to the power they possess to shape their financial futures and futures.
- Support local Bitcoin communities and educational initiatives.
- Advocate for regulatory frameworks that foster innovation and protect consumers.
- Invest in the development of user-friendly DeFi platforms that are accessible to the average African.
- Build bridges between CeFi and DeFi to unlock new opportunities for yield generation.
So let’s not allow the hype to distract from what’s possible. So let’s put our yield where our mouth is, and let’s create this Bitcoin revolution that makes Africa a much better place. And if there happens to be a gold mine in their backyard, let’s make sure that mine belongs to them. And I believe we can.
Let's not let the hype overshadow the real potential. Let's focus on yield, and let's build a Bitcoin revolution that truly benefits Africa. Let's make sure the gold mine in their backyard belongs to them. And I believe we can.
