Nigerians Move Nearly $ 40 Million In P2P Bitcoin Trading In One Month
Bitcoin trading has always been widely adopted in countries with rapidly depreciating currencies. Nigeria, a country in West Africa, has always been at the forefront of BTC adoption in the region. The combination of a large population of young people, the growing popularity of technology and a rapidly depreciating currency has prompted citizens of the most populous African country to look to another option for storing value.
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Earlier this year, the government of Nigeria announced a nationwide cryptocurrency ban. Direct banking and payment institutions to stop facilitating the buying and selling of digital assets. But despite the ban, bitcoin adoption continues to rise in the country. In 2020, Paxful released figures showing that Nigerians were the second largest BTC market, just behind the United States.
This growth of Bitcoin has continued in the country. With exchanges like Binance, Buy coins, LocalBitcoins, Paxful and a host of others allowing citizens to trade BTC via P2P. Nigeria continues to lead the continent in BTC adoption.
Growing P2P market
The ban does not appear to have had much of an effect on the momentum for bitcoin adoption in the country. Data Useful tulips shows that Nigerians alone traded and moved nearly $ 40 million worth of BTC P2P transactions within 30 days.
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Data which was taken from July 4 to August 4 showed that the P2P value of Nigerian Naira (NGN) traded BTC stood at $ 38,083,688 in 30 days. This number was taken from two leading P2P services used in the country, Paxful and LocalBitcoins. While the previous 30-day period had seen over $ 37 million traded and moved on major P2P platforms.
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Kenyans came in second in Nigeria for the volume of BTC traded on P2P, with $ 14,054,477. Less than half of the volume was moved by Nigerians alone. But still slightly higher than the amount moved around the country in the past 30 days, which stood at just over $ 13 million.
Reasons for the growing adoption of Bitcoin
The adoption of Bitcoin in Africa is on the rise. The use of BTC as a means of sending funds home is becoming increasingly popular on the continent. In countries like Nigeria, sending remittances to relatives back home can be a tiring and exhausting process. With regulations making changing from dollars to Naira a difficult process.
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Bitcoin provides fast and efficient transactions for people who send money home. With their relatives receiving the parts sent in a few minutes. And exchange 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 a new store of value. Nigeria’s inflation rate has now reached as high as 20%, hence the purchasing power of the local currency has declined significantly. Bitcoin offers a viable alternative to the currency’s decline.
Featured image from Bitcoinist, chart from TradingView.com