In this post, I discussed 6 Reasons Why Bitcoin Popularity Continues To Soar In Nigeria.
Interestingly, Nigeria transacted over $34.4 million in bitcoin in the 2nd quarter of 2020, which placed her above lead countries (including South Africa and Kenya).
These figures are not surprising because Nigeria has been a household name in the cryptocurrency world for the past 2-3 years.
But how did that happen? How is it that Bitcoin keeps trending even though the Nigerian government has declared that it is not a legal tender?
Read this post to the end to find out.
- 6 Reasons Why Bitcoin Popularity Continues To Soar In Nigeria
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Enjoy your read!
6 Reasons Why Bitcoin Popularity Continues To Soar In Nigeria
It is not clear how and when Bitcoin arrived in Nigeria.
However, it is widely believed that cryptocurrency was popularized by a Ponzi scheme – Mavrodi Mondial Moneybox (MMM) in 2016.
While thousands of Nigerians lost money trying to get a few Bitcoin, the scam pushed people to seek knowledge on how cryptocurrencies work.
Beyond this incident, here are 6 reasons why Bitcoin popularity continues to soar in Nigeria:
1. Concerned NGOs and Groups
One of the reasons Bitcoin’s popularity continues to soar in Nigeria is because of some concerned NGOs and groups in the country.
Also, several Blockchain groups have emerged in Nigeria following the MMM scam that impoverished thousands of citizens.
These groups maintain the vigil over cryptocurrency trading in the country.
They serve as vigilantes and alert people about potential fraud.
As a result, Nigerians feel more secure to make deals in bitcoin.
2. Consistent Devaluation Of Naira
Over the years, the Nigerian naira has experienced a consistent devaluation.
And as such, Nigerians are seeking a more secure asset to store value. And this is one solution that bitcoin provides.
With Bitcoin, Nigerians can keep their funds safe in their wallets.
They don’t have to bother about the devaluation of naira especially since the value of bitcoin appears to always be on the rise.
Also, they do not have to sell their naira at low rates in exchange for US Dollar, Euro, Japanese Yen and other currencies.
And since bitcoin is not regulated by the government, bitcoin owners are protected from any vagaries that naira may face.
3. Efficient Cross Border Payment
Another good reason why Bitcoin popularity continues to soar in Nigeria is because it provides a more efficient means of cross border payment.
For example, if a Nigerian wants to pay a merchant in China, the local bank procedures are exhausting and it may be take 3-5 days before the merchant receives his pay.
But with bitcoin, this transaction can be completed in a matter of minutes.
Hence, people prefer to use bitcoin to fund their cross border transactions.
It is faster and cheaper.
4. The Presence Of Bitcoin Exchanges
The fourth reason I believe bitcoin’s popularity will continue to soar in Nigeria is the presence of quality bitcoin exchanges in the country.
A majority of these exchanges offer state-of-the-art services for selling/buying bitcoin.
They are connected to the bitcoin blockchain so, transactions are completed fairly quickly.
With these exchanges, Nigerians have become more confident in the authenticity and scalability of bitcoin.
Also, many Nigerians view these bitcoin exchanges as avenues for investment.
5. Foreign Remittances Made Easy
Here’s another reason why bitcoin popularity continues to soar in Nigeria.
Foreign remittance refers to money transferred from a foreign worker to his family or other individuals in his home country, basically for living expenses like food and clothing.
The cost and delay involved in processing foreign remittance have encouraged individuals to switch to cryptocurrency for the same purpose.
Again, due to fear over the future of the Nigerian economy, a good number of expatriate Nigerians encourage their families to invest in Bitcoin rather than Naira based saving schemes.
The prevailing high price of Bitcoin notwithstanding, they feel it is safer to save in cryptocurrency since it can be monitored from anywhere in the world.
And though bitcoin has its share of occasional downslides, it has a remarkable history of recovery.
So, it is a win-win!
6. The Craze for High Returns
Before bitcoin, Nigerians were never satisfied with conventional savings services.
This is because of low returns and consistent economic doldrums.
Now with Bitcoin, Nigerians have the opportunity to make investments that produce high returns.
Since its launch in 2009 – 2010, Bitcoin’s rates have never slid down for long periods. Also, it has shown an amazing record of recovery so far.
As of June 2020, bitcoin provides an average 49.27% return on investments. Cool, right?
This opportunity to earn huge is too glaring for Nigerians to ignore.
Bitcoin is versatile with a very promising future. As more Nigerians discover bitcoin, its popularity will continue to soar.
We have come to the end of our discussion on bitcoin popularity in Nigeria. I hope you enjoyed your read.
Now, I’d love to hear from you:
Do you agree with the reasons given above?
Which of the reasons can you relate with?
Are there other reasons you feel should be added to the list?
Let me hear your thoughts in the comments section right now.
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