Bitcoin trading has always enjoyed a high level of acceptance in countries with currencies that are rapidly depreciating. The West African country of Nigeria has always been a leader in introducing BTC to the region. A combination of a large youth population, the growing popularity of technology and a rapidly depreciating currency has led the citizens of the most populous African country to turn to another option of store of value.
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Earlier this year, the Nigerian government announced a nationwide ban on cryptocurrencies. Instructing banking and payment institutions to stop making it easier to buy and sell digital assets. But despite the ban, Bitcoin adoption continues to grow in the country. In 2020, Paxful released numbers that showed Nigerians formed the second largest BTC market, just behind the United States.
This growth of Bitcoin has continued in the country. With exchanges like Binance, Buycoins, LocalBitcoins, Paxful, and a whole host of others offering a way for citizens to trade BTC through P2P. Nigeria continues to lead the continent in adopting BTC.
Booming P2P market
The ban doesn’t appear to have had much of an impact on the momentum of Bitcoin adoption in the country. Data from UsefulTulips shows that Nigerians alone traded and moved nearly $ 40 million in BTC P2P trading in 30 days.
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The data, taken from July 4th to August 4th, showed that the P2P value of BTC traded in Nigerian naira (NGN) was $ 38,083,688 in 30 days. This number comes from two well-known P2P services in the country, Paxful and LocalBitcoins. Had traded over $ 37 million and moved up to the top P2P platforms during the previous 30-day period.
BTC price breaks $40,000 for the second time in a 7-day period | Source: BTCUSD on TradingView.com
Kenyans ranked second after Nigeria in P2P-traded BTC volume at $ 14,054,477. Less than half of the volume was moved by Nigerians alone. But still a little higher than the amount moved around the country in the last 30 days, which was just over $ 13 million.
Reasons for the increasing acceptance of Bitcoin
Bitcoin acceptance in Africa is increasing. Using BTC as a way to send home transfers is growing in popularity across the continent. In countries like Nigeria, remittances to loved ones back home can be a tiresome and grueling process. With regulations that make converting dollars into naira a tough process.
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Bitcoin offers fast and efficient transactions for people sending money home. With loved ones who will receive the coins in a few minutes. And swap the coins for the local currency in just a few steps using P2P BTC trading.
With currency devaluations, citizens have now turned to digital assets as the new store of value. The inflation rate in Nigeria has now reached up to 20%, which has reduced the purchasing power of the local currency enormously. Bitcoin offers a viable alternative to the falling currency.
Featured image from Bitcoinist, chart from TradingView.com