Cryptocurrency investment should be preferred for emerging markets.

Comment by: Ayush Ranjan, Co-Founder and CEO of Huddle01

Many say that Web3 is a speculative playground because it has the power to produce millionaires overnight and because memes seem to win out over real utility. Long-term builders and dreamers can quickly lose faith in the future of the industry. Despite the media narrative, there are bright spots.

Blockchain and crypto are truly benefiting humanity, especially in emerging markets. There are fundamental societal changes as Web3 technology helps the unserved and underbanked and combats the shortcomings of modern traditional institutions in finance and more.

The investment must follow.

New markets dominate adoption rates.

In the year By 2024, the World Bank estimates that 1.4 billion people will remain unbanked worldwide. Decentralization is fundamentally about addressing the unequal distribution of value. The industry needs to support more builders who are committed to driving change.

Africa is one of the leading regions in crypto adoption, mainly due to limited access to banking services. In the year Even in 2021, nearly 300 million adults in sub-Saharan Africa lack access to essential banking services. This lack of access severely limits people's ability to carry out everyday transactions and to save and invest – let alone run a business.

Crypto is changing this narrative.

According to the Chinalysis 2024 Global Crypto Adoption Index, developing countries dominate the rankings, with countries like India, Indonesia and Nigeria leading the way.

In the year Sub-Saharan Africa had the highest Bitcoin (BTC) adoption rate in the world by 2023, while Nigeria ranked second globally in the Global Crypto Adoption Index. In the year By mid-2023, sub-Saharan African countries will account for 2.3 percent of the global cryptocurrency transaction volume, receiving about $117.1 billion in onchain value. In these geographies, crypto serves practical purposes beyond speculation.

Implementation is progressing.

In emerging markets, we are seeing the practical use of crypto rather than its use as a speculative asset. Environmental entrepreneurs with a first-hand understanding of environmental problems create meaningful change, and new technological innovations are fit for purpose.

Pilot programs like CARE, which distributes crypto-based vouchers to vulnerable groups in Kenya and Ecuador, show how crypto can provide access to essential goods and services while boosting economic recovery from the Covid-19 pandemic. Invulnerable tokens have become cross-border fundraising vehicles.

Urgent management problems mean adoption is growing in importance.

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The Indian city of Raipur recently set real estate records on the blockchain with innovative encryption startup Airchains. This blockchain-based solution aims to prevent counterfeiting and reduce the processing time from one month to three days. In developed countries, there is usually a demand for consideration. Raipur, however, was keen to resolve the tender process and challenge immediately.

Funding adoption is not a shiny new phenomenon.

While capital flows into crypto projects in emerging markets are becoming more significant, they still fall short compared to funding available for projects in well-developed countries.

In the year In 2023, developed countries, especially the United States, led the way, investing nearly $1.975 billion in Q3 alone, with US-based companies accounting for 34.5% of all crypto VC funds.

In contrast, emerging markets have struggled to find affordable financing, with Africa's total investment capital hovering around $1 billion throughout the year, highlighting the challenges for projects in these regions.

Recently, the recognition of the potential in emerging markets has grown. Crypto investment should now be focused on where mass adoption is taking place. Crypto is not a speculative asset but a practical tool in emerging markets.

Ayush Ranjan is the Co-Founder and CEO of Hadl01.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.