Understanding why older Africans Should take cryptocurrency seriously and why it is important is crucial in today’s Africa. This article will help with that.
Cryptocurrency, such as bitcoins, was most popular among the younger generation. 12% of 18 to 29-year-olds claimed to be Bitcoin owners.
However, people aged 30 to 39 years old had cryptocurrency in 8% of cases. Whereas those aged 40 and up had almost no bitcoins or other cryptocurrencies.
This is a really poor statistical review of the older African’s engagement with crypto.
The truth is, The elderly cannot be overlooked. The cryptocurrency world is acknowledging that retirees, with their unique needs, may make up a large portion of the user base.
Since most older Africans are either close to becoming retirees or retired, understanding why they should engage with crypto is crucial.
What is Cryptocurrency?
Understanding What crypto is all about will help understand Why Older Africans Should Take Cryptocurrency Seriously.
Now, what is cryptocurrency?
A cryptocurrency is a digital or virtual currency that is protected by encryption, making counterfeiting and double-spending practically impossible.
Many cryptocurrencies are built on blockchain technology, which is a distributed ledger enforced by a distributed network of computers.
Generally, cryptocurrencies are distinguished by the fact that they are not issued by any central authority. This makes them potentially impervious to government intervention or manipulation.
Cryptocurrencies are digital or virtual currencies that rely on cryptography technologies to function. Read the tech and productivity section to understand the tech space better.
They make it possible to make safe online payments without the involvement of third-party payment processors.
Various encryption methods and cryptographic approaches, such as elliptical curve encryption, public-private key pairs, and hashing functions, are referred to as “crypto.”
Furthermore, cryptocurrencies can either be mined or bought on cryptocurrency exchanges. Cryptocurrency purchases are not permitted on all eCommerce sites.
In fact, even famous cryptocurrencies like Bitcoin are rarely used for retail purchases. Cryptocurrencies, on the other hand, have become popular as trading instruments because of their increasing value. They are also utilized for cross-border transfers to a limited extent.
Why Older Africans Should Take Cryptocurrency Seriously
Older Africans are frequently recommended to maintain more conservative investment portfolios than those who are still working and have a long way to go.
What is the explanation for this?
Retirees frequently cash out their investments to cover their living expenses.
Many seniors are unable to live solely on Social Security, so they invest their savings in stocks and bonds and withdraw funds as needed.
Taking withdrawals may necessitate cashing out investments when they are at a loss. Because stock prices fluctuate far more than bond prices, seniors are sometimes recommended to move away from stocks and invest more in bonds. These are more stable investments.
At first look, bitcoin may not appear to be a viable investment for retirees because it is even more volatile than equities. That isn’t to say that retirees should avoid it altogether.
Some old Africans will have a variety of income options.
A pension, Social Security, an investment property, a dedicated retirement plan, and a separate brokerage account, for example, could all contribute to a person’s net worth.
Therefore, investing a small amount of money in cryptocurrencies wouldn’t be a bad idea for a financially secure senior.
On the other hand, those who are cash-strapped may wish to avoid crypto. Because Bitcoin is still so new, it’s difficult to say whether it will prove to be a good long-term investment.
However, much will hinge on whether it becomes a widely recognized form of payment and if demand remains high.
As a result, retirees with limited financial resources may be better off playing it safe and avoiding digital currency.
Getting Started Is Simple
The technology and concept underlying cryptocurrencies may appear sophisticated, even arcane. The truth is that getting started with this type of investing is actually rather simple. Before you do, there are a few ground rules to keep in mind.
First, cryptocurrencies should only make up a small part of your overall investment portfolio, especially if you’re just getting started.
Second, there are numerous tokens from which to choose. Do your homework and learn about the ones that pique your interest. Also, keep in mind that many have a history of attracting speculation and skyrocketing in price before flattening or disappearing entirely.
Diversify Your Investment Portfolio
Crypto should only make up a small percentage of your overall investment strategy. It does offer a unique opportunity to diversify your portfolio.
However, investing in cryptocurrency provides you with an asset that exists outside of the typical financial market’s behavior.
When market-wide events create a sharp drop in the stock market, or when inflationary trends erode the value of the traditional dollar, cryptocurrencies frequently follow their own set of rules.
Profit from a significant return on your investment
Take a look at Bitcoin to get a sense of how much money you can make in the crypto world.
According to Coinbase, a single Bitcoin was worth $112+ in August of 2012. A single Bitcoin is worth more than $57,000 at the time of writing in December 2021.
Naturally, being the first entrant into a field characterized by massive and quick innovation, Bitcoin is unrivaled in the market, both in terms of its value and its long-term viability.
These are the reasons Why Older Africans Should Take Cryptocurrency Seriously.
Wrapping Up: Why Older Africans Should Take Cryptocurrency Seriously
However, If your main concern is that you simply missed the blockchain boat, be rest assured. There are still plenty of opportunities to make wise investments.