In a lively interview, Abubakar Nur Khalil, CEO of Recursive Capital, explores Bitcoin’s transformative role in Africa, highlighting its economic empowerment potential. His Bitcoin journey began in 2017, leading him to create Recursive Capital, focused on Africa’s Bitcoin ecosystem.
The State of Nigeria’s Currency and Bitcoin’s Convenience
The conversation opens with a discussion on Nigeria’s currency, the Naira, which has devalued to the point where it’s almost on par with Satoshis in value. This has made Bitcoin a convenient alternative for transactions, offering stability in a volatile economic environment.
Abubakar Nur Khalil’s Bitcoin Journey and Recursive Capital
Abubakar Nur Khalil shares his personal journey with Bitcoin. Starting in 2017, he was drawn to Bitcoin’s technology and potential, leading him to learn coding and contribute to Bitcoin Core. His involvement in the Bitcoin space has since expanded to include launching Recursive Capital, a Bitcoin wallet and contributing to various Bitcoin Core and other Bitcoin-related initiatives in Africa.
The Duality of Bitcoin in Nigeria: Adoption and Criminality in Africa
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The interview touches on the high adoption rate of Bitcoin in Nigeria, contrasting it with its criminal use, particularly in scams. Despite this, Abubakar emphasizes that these scams are not reflective of Bitcoin’s future trajectory. Instead, they are a symptom of a lack of understanding and proper regulation. Moreover, he believes these scams will be overshadowed by legitimate use-cases over time. Additionally, he highlights the importance of educating both the public and government officials about the differences between Bitcoin and other cryptocurrencies.
Government Policies and Bitcoin’s Resilience
The discussion shifts to government policies and their impact on Bitcoin. Abubakar points out that attempts to regulate or ban Bitcoin have been unsuccessful and have, in fact, increased awareness and adoption. He argues that governments should embrace Bitcoin to remain economically competitive and solve issues like energy sovereignty, inflation and currency devaluation.
The Unique Perspective from Nigeria
Abubakar offers valuable insights into the Nigerian perspective on Bitcoin, highlighting the country’s large peer-to-peer market. He explains how this market has facilitated the translation of commerce into Bitcoin, providing stability in transactions. Additionally, he discusses the significant differences between Nigeria and other African countries regarding Bitcoin adoption. These differences, he points out, also extend to the various use cases of Bitcoin across the continent. Furthermore, Abubakar emphasizes how Nigeria’s unique position shapes its Bitcoin economy compared to other nations in Africa.
Recursive Capital’s Investment Thesis in Africa
The conversation delves deeper into Recursive Capital’s investment strategy, with a strong focus on efficiently allocating capital in Africa. Abubakar believes that African developers are at the forefront of driving Bitcoin innovation across the continent. Furthermore, he envisions that Africa will witness the emergence of the purest form of Bitcoin companies. To support this, he cites examples of companies they have invested in, such as Bitnob and Fedi. These companies, according to him, are leading the charge in driving both innovation and Bitcoin adoption throughout the continent.
Challenges and Opportunities for Bitcoin in Africa
The interview concludes with a discussion on the challenges Bitcoin faces in Africa, including the potential rise in scams. This increase in scams is largely due to the ease of transferring money via Bitcoin. However, Abubakar remains optimistic, believing the economic opportunities created by Bitcoin will surpass the risks of criminal activities. Additionally, he envisions a future where Africa not only consumes Bitcoin but also leads its development and related technologies.
In summary, even though Bitcoin has high adoption rates, its use in scams highlights the need for education and regulation. Despite government efforts to ban Bitcoin, its resilience and growing awareness continue to emphasize its long-term potential.
