Four million Kenyans may be at risk of losing investments from the impact of the sharp decline in the cryptocurrency markets globally.
With Bitcoin (BTC) sliding close to and below $20,000, many people who hold digital currencies in the country and mostly BTC are at risk of losing a huge chunk of their investment.
Worried investors were quick to sell off early into the crash hoping that they could cut their losses. However, The Central Bank of Kenya has allegedly thought that digital currencies and assets are a high-risk investment that should be taken with a pinch of salt.
Meanwhile, analytics blockchain firm Chainalysis said that Kenya is one of the most crypto-friendly nations as FIAT currencies have been subjected to frequent depreciation due to mounting inflation.
How Kenyans deal with the current cryptocurrency crash depends on each investor. Some have sold off but others have said they would HODL (a term used by cryptocurrency investors to describe ‘holding’ onto investments during a sharp downturn.
Investors in Kenya have possibly lost billions much like elsewhere in the world. But Kenyan investors use cryptocurrencies much differently than Europe and North America, they use them as a hedge.
Not all Kenyans were buying cryptocurrency when prices were soaring, several people bought their BTC early and they may still be in the black. However, some are recommending a more pragmatic approach.
George Mwakisha, Binance East Africa BDM, said: “The sell-offs should not really worry crypto investors. What is happening is that some are moving their cryptos to less risky assets, just like what we have seen in the traditional financial markets.”
So, unless Kenyans have lost their savings in the TerraUSD crash they have very little incentive to panic and offload their holdings.
In the meantime, you can keep using cryptocurrency recreationally and enjoy the gameplay at Bitcasino.io, FortuneJack or 1xBit.