Top-2 Global Bitcoin P2P Markets are in Nigeria

Africa in 2020 showed huge interest in cryptocurrency

According to the statistics, the following after the United States P2P-market BTC is Nigeria. This is not surprising, because the increased interest in cryptocurrency originated in Nigeria in 2017-2018.

Representatives of the Paxful exchange recently released data that for the five-year period of 2015-2020, the United States is in the first place in terms of investment. The first place of the country brought the figure of 535.6 thousand BTC ($3.76 billion).

In Nigeria, the turnover of Bitcoins was 60.2 thousand BTC ($566.67 million) during the same period. In third place is China, with only 20,553 BTC (118 million). These statistics show that Nigeria is also the largest Bitcoin market in Africa.

 

 

There are a lot of scams in Nigeria

Historically, in 2016, passions raged in the country because of another Ponzi scheme, which promised to pay 30 percent of profits and guarantee several more gifts for investments in fiat currencies and Bitcoins.

The project was launched in 2015 as a mutual aid fund. The idea of letting ordinary people help each other in difficult situations caught the attention of many poor people. Even the unemployed invested their money in the scam. By the end of 2016, there were 2.5 million participants in the pyramid.

In 2017, the trap slammed shut. The creators of the project stole money, deceiving all investors. However, this has not become a science. Such schemes continue to flourish in Nigeria because of the greed and low knowledge of many Nigerians.

Despite this start, BTC has not lost its appeal to investors. In a country with an unstable economy, keeping money in Bitcoin is a reasonable and justified choice.

Pros of Bitcoin for Nigerians

Bitcoin has long proved its benefit. It was a factor that awakened the consciousness of many people in Africa. The youth of Nigeria actively use BTC for trading and international transfers.

Sending/receiving payments from abroad in Nigeria is tight, as the authorities have introduced strict measures to protect the national currency of the naira.

Through global payment systems, such as PayPal, payments can be sent abroad. However, not everyone works in the country. For example, You can't use TransferWise. The country is blacklisted because of dysfunctional legislation.

All available payment methods are not efficient or too expensive. Remittances take days, and have strict requirements for KYC. Before the advent of Bitcoin, it was difficult to make payments because there was no access.

But with the advent of cryptocurrency payments, which are faster and cheaper than traditional channels, it has become easier to send and accept payment. And Nigerians love Bitcoin and respect it. It is perfectly divided into satoshi, and you can send almost any amount.

BTC is also in demand because of its immunity to censorship. In October, when the country held a wave of protests EndSARS, donations in support of the movement were made through traditional channels. Police quickly blocked access to them, but the youths instantly rebuilt on Bitcoin. As a result, out of 400,000 dollars, just over a third was transferred to Bitcoins.

BTC is also popular as a repository of value. The national currency is constantly getting cheaper against the dollar. Therefore, Nigerians are trying to transfer money into Bitcoins to protect against inflation. Its figure in November reached 14.89%. This happened against the background of the fact that the prices of products have increased significantly.

Interest in BTC is a growing

Indicators from Google Trend confirm the growing interest in Bitcoins in Nigeria. It is in first place on the request of "Bitcoin" as of November 2020. This interest is followed by an increase in the number of new users of cryptocurrencies. Accounts are registered on exchanges and wallets are created.

 

 

According to Paxful statistics for the first-third quarter, the number of registrations from this country increased by 137%. Currently, there are more than 600,000 clients from this state on the stock exchange. Nigerians actively use Paxful to transfer funds, peer-to-peer and arbitration trading in cryptocurrencies.

The Blockchain.com wallet also publishes information about the increase in the number of users. Over the past six months, Nigeria has become the most active country, increasing the use of the wallet by 60 percent since the second quarter of 2020.

Nigeria leads the African continent

High rates of adoption of cryptocurrencies are observed in Nigeria not only in comparison with the world, but also with the rest of The African states. Although the situation is much the same for its neighbors, and Bitcoin is also used by a large part of the population, Nigeria is well ahead of South Africa and Kenya.

Young people from Nigeria are more receptive to new technologies. Investor Andrew Ame says this is due to a great openness to everything new. Alas, because of this quality among Nigerians flourish various benches and Ponzi schemes.

Forecast for the future

Analysts believe that interest in Bitcoin and cryptocurrencies in Nigeria will only grow. Now that the price of cryptocurrency has risen so much, trading is one of the most promising methods of making a profit for Nigerians.

Looking at the high demand, the country's financial regulator is trying to prepare a regulatory framework to protect traders from losing funds. The first document was submitted for approval back in September. The supposed rules for the circulation and trading of cryptocurrencies are designed to regulate the sphere of cryptocurrency assets.

It should also be noted that not so long ago the first BTC-ATM opened in Nigeria, and this is also a great achievement. We will keep you informed of the further development of the situation!

You can get more information, register and start trading on Huobi.

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The article has an informational character, reflects the opinion of the author. Before you make a decision, analyze the market situation.