All the way in Nairobi, Kenya, Bitcoin is taking off as an alternative payment option through the slum of Kibera. Kevin Gundo making a purchase with Bitcoin at the L.W. Trader Market. This major purchase further illustrates the rapid increase of cryptocurrency and popular adoption within the region. AfriBit Africa is at the forefront of this movement. Back in early 2022, they brought Bitcoin to Soweto West through the distribution of crypto-denominated grants to local waste-pickers.

When Bitcoin was launched back in 2009, it was a direct reaction to the global financial crisis. It was created to be a peer-to-peer electronic cash system, providing a different kind of payment network. Over the last five years, its value has increased almost 1,000% earning itself a strong loyalist base.

Damiano Magak, 23, is a garbage collector and food vendor. He chooses to use Bitcoin over the mobile money service M-PESA due to lower transaction costs and network speeds.

On my phone I put notifications on when bitcoin rises ... and it's all smiles. - Magak

AfriBit Africa has since invested about $10,000 in the Soweto West community. Ronnie Mdawida, co-founder of AfriBit Africa, stated that waste collectors were key in helping drive Bitcoin acceptance throughout Soweto West. As of now, about 200 residents in this groundbreaking neighborhood of Kibera are regularly using Bitcoin.

Ali Hussein Kassim, another co-founder of AfriBit Africa, highlighted the organization’s focus on Bitcoin education in Kibera. Their projects range from financial literacy trainings to blockchain technology and cryptocurrency education specifically designed with the Black community in mind. Specifically, Kassim understands that digital assets can simplify cross-border payments like remittances by making them less expensive.

Magak estimates that as much as a tenth of his vegetable-stand customers now pay him in Bitcoin. He and fellow garbage collector Onesmus Many, whose story you can read here, now say that 70% to 80% of their net worth is in Bitcoin. This is an extremely high proportion – much higher than most investors hold in cryptocurrency.

It is my worth and I'm risking it in bitcoin. - Magak

They have an increased perception of security in storing their wealth in a bitcoin wallet. This preference reflects their concerns about security if they were to hold cash. Transactions on the Lightning Bitcoin network are no cost to users that use the platform launched by AfriBit Africa.

Kassim understands the allure of Bitcoin. He knows that, given its volatility, those costs will sometimes outweigh the benefits of lower transaction fees. He further notes that Bitcoin is devoid of the regulatory protections provided to conventional financial services.

In an extremely volatile asset like bitcoin, it's overexposure. I can't afford to lose 80% of my wealth. How about a guy in Kibera? - Ali Hussein Kassim

Just a year or so ago, El Salvador and the Central African Republic were heroic eccentrics for adopting Bitcoin as legal tender. Yet both countries have since backtracked on those decisions.

In many cases, people in Kibera do not have an opportunity to secure their lives with normal savings. With bitcoin, they do not need documentation to have a bank account ... that gives them the foundation for financial freedom. - Ronnie Mdawida