Nigeria embraces cryptocurrencies like no other country worldwide. People opted for a more promising and secure financial future after losing hope with the country’s traditional currency. Bitcoin is a new phase for Nigerians to get by amidst devastating poverty. One 34-year-old Tola Fadugbagbe talks about his 2016 experience with Bitcoin. He studied crypto articles, watched youtube videos to begin a journey to transform his life.
Although not banned, the government doesn’t uphold cryptocurrency because of past untraceable fraudulent activities. It dreads connecting financial institutions to illegal acts by allowing BTC to Naira exchanges. Despite the crackdown against cryptocurrency, here is how Bitcoin trades occur;
Exchanges Between Peers (P2P)
Buyers and sellers trade Bitcoin directly without financial institutions. Transactions are prompt with the crypto P2P to buy Bitcoins using Ripple, Ethereum, and Cardano altcoins. The Naira P2P also purchases Bitcoin with the local currency directly into the seller’s digital wallet.
Stable coins and Nigeria Naira Tether (NGNT)
Nigerians purchase Bitcoin with the dollar, South Africa’s Rand, or Pound. They change these to Naira using the virtual Nigeria Naira Tether (NGNT), which sells with the traditional currency’s value to move money to local bank accounts.
Stable coins link underlying assets like valuable metals with high values pegged to the dollar. Bitcoin traders buy the currencies to save investments from devaluation with currency fluctuations. Brokers also sell stable coins on P2P platforms with favorable rates for goods and services. It is also common for people to use debit cards and monetary apps to buy Bitcoin with Naira to pay for digital services.
In short, many Nigerians who trade Bitcoin don’t look back. Such success stories suggest a 32% high proportion of Nigerians who trade Bitcoin. They place the country on the top 10 list of the trading volumes after the USA and Russia. Despite Bitcoin’s volatility, Nigerians appreciate:
Improved Banking Technology
Local currency transaction costs across British and Nigerian borders are high. People investing in Bitcoin better their banking experience. Unlike Naira, Bitcoin saves money as a high-value currency. People also hold money with crypto because of the local currency’s devaluation. The digital coin has several speculative technical uncertainties of a high-risk investment. Nigeria’s central bank hasn’t regulated crypto but should do so from an economic perspective.
Bitcoin is More than Monetary Shares
Bitcoin is Nigerians’ way of maneuvering foreign currency restrictions. It is the ideal investment tool to create awareness of the vices the government should end. #EndSars protests in 2020 geared at Bitcoin investors to end police brutality. In an attempt to suspend the organizers’ accounts, Bitcoin transactions increased to a new wave. Many hearts pumped for the currency and distributed centralized financial systems. As such, few business investors in Nigeria own shares and bonds with the government.
The young population is interested in adopting Bitcoin exponentially. Unlike other coins, Bitcoin is conveniently borderless to facilitate international transactions. Nigerians strive to prove the currency’s overperformance despite the government’s ban. Bitcoin makes their lives easy with undoubted growth potential.