CNBC Africa, a subsidiary of the CNBC group, recently launched a section on digital currencies. In this regard, the program’s host appeared on Fast Money and issued his opinions on the leading cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Ripple.
The euphoria around digital currencies is spread across the world, as investors express their desire to join this lucrative industry. Undoubtedly, Africa is one of the continents in which traders have embraced the concept of virtual currencies, going by the mass adoption of this technology.
Prevalence Of Corruption
Apparently, the popularity of cryptocurrencies in Africa is due to the high prevalence of corruption and distrust between governments and citizens. For instance, in Zimbabwe, the local currency underwent an enormous inflation, losing its ground against major fiat currencies within a relatively short period. Therefore, it is understandable that Zimbabweans would prefer a decentralized alternative that is not regulated by the corrupt local administration.
The pervasiveness of corruption is perhaps the most significant driving factor behind the creation of a cryptocurrency show on CNBC Africa. The program, known as the Crypto Trader, is similar to CNBC’s segment, albeit being more biased to the African market. Its host, Ran Neu-Ner, recently gave insights on some of the most popular virtual currencies.
Concerning Bitcoin, Ran was positive that the value of the first cryptocurrency will continue to raise slowly and steadily. Nonetheless, he was not entirely optimistic on this stance. Elaborating further, Neu-Ner stead that there were better alternatives to Bitcoin. Particularly, he noted that as more altcoins hit the market, they will curb Bitcoin’s popularity amongst investors. Moreover, ran added that Bitcoin h, whose value is a whopping $130 billion, has already reached its peak and is likely to grow slowly as compared to a currency whose valuation currently stands at $1 billion.
Besides being second to Bitcoin, Ethereum is renowned for the introduction of DApps and smart contracts. Ran was very bullish about the Ethereum blockchain, saying that it harbors the industry’s elite minds. He added that the Ethereum blockchain is the most applicable to real-life projects, despite facing scalability issues. Neu-Ner concluded by advising Ethereum owners to HODL.
Ran sees BCH as a potential game changer in the future, given that it still new to the market. With the recent upgrading of the block size from 8MB to 32MB, Bitcoin Cash holders are confident that the coin’s value will appreciate. Nevertheless, this upgrade caused an uproar amongst investors who argued that BCH could not fill up the previous 8MB block capacity.
In conclusion, Neu-Ner discussed Ripple, the third largest cryptocurrency by market capitalization. Ran literally destroyed XRP, saying that he cannot identify its applicability to real-life situations. Furthermore, he stated that Ripple is a centralized currency, which makes it an unorthodox option (cryptocurrencies are usually decentralized). He finalized by explicitly declaring the XRP fits wells in the garbage.