Despite
recent moves by officials to clamp down on crypto, Bitcoin has never been more
popular in Nigeria. But why is this? Local traders believe that interest in BTC
across the nation, particularly with young people, is rising.
The
figures suggest this is certainly the case. As of July 2021, more than $200
million in BTC had been traded peer-to-peer across Nigeria. That, even in
comparison with trading in regions such as Ghana and Kenya, is an incredible
milestone.
But
what might the future hold for Bitcoin in Nigeria? Why is it such a big draw in
the here and now?
Reasons for Crypto Skyrocketing
Much
of the interest peaking in crypto across Nigeria could be related to fiat
currency devaluation. Sources suggest that the Naira was devalued by almost a
quarter in 2020. That alone, some propose, is a key reason why there has been a
significant swing towards crypto region-wide.
Significant
inflation issues and political matters have driven Nigerians towards crypto in
recent times. However, the government has responded by curtailing BTC. This
isn’t to say they are not interested in the power of crypto, however. As
recently as July, they were considering a pilot to bring a
government-controlled version to the masses.
How
well this will go down in future remains to be seen. However, crypto is already
very much a way of life for many Nigerians. For example, many are using Bitcoin
to pay for online games - you can read
more about this on this blog. Therefore, it’s safe to say that many
citizens will be keen to keep their trading rolling, having seen the major
benefits.
What is the Future for Nigeria and Bitcoin?
While
there are moves to block crypto as it stands, the government’s decision to
launch its own scheme is interesting. However, one of the biggest drivers for
interest in Bitcoin is the fact that it is mainly anonymous. There is also a
lack of red tape and bureaucracy. Meaning transactions are often faster and
smoother.
Despite
bans from official sources, P2P trading hasn’t slowed down. Many Nigerians
are extending trading into China, for example. Beyond this, there are young
businesses in the cities that are thriving thanks to crypto loans. It will be
intriguing to see if blocks are removed as a result of the changing economy.
Nigeria
is not the only nation to swing towards crypto in light of fiat concerns. Zimbabwe,
too, is making similar moves. As it stands, and in light of significant global
change over the past year, Nigeria is at the forefront of the digital economic
revolution. They are ranked in the top ten, at least, of countries adopting
crypto in recent times.
It
may be some time before Nigeria follows in Australia’s footsteps, where Bitcoin is readily accepted
in storefronts. However, there are no reasons why, on mass, the continued
thirst for crypto can’t tip the balance. The next three years will be ones to
watch!
Photo
Source: https://unsplash.com/photos/67ruAEYmp4c
Photo by Nupo Deyon Daniel on Unsplash
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