Bitcoin in Nigeria: Reasons Bitcoin may displace Naira
Bitcoin is the world most popular cryptocurrency . Invented in January 2008 by the Pseudonymous Satoshi Nakamoto . Bitcoin in 2009, has little or no value when compared with the US Dollar. Bitcoin has been a source of development
However, over the years, Bitcoin has experienced a thunderous increase in value. Bitcoin which was once as low in value as $0.1 is today sold at $7,504,75 equivalent to 2,720,471.88 Naira.
Nigeria as the giant of Africa is a commercial city engaged in both exportation and importation of goods, there by having the constant need for international payments. Bitcoin as a digital currency has over the year, witnessed great recognition and acceptability in Nigeria.
Today, Nigeria is one of the countries that have taken substantial steps to legalize bitcoin trade and usage. With the increase in the value of bitcoin and the decrease in the value of the Nigerian currency against the US Dollars, it will not be out of place to expect that sooner than later, Nigerians will embrace bitcoin as a medium of exchange as against Naira (the local currency). This is because cost of production and importation increases will the decrease in the value of Naira against US Dollars.
If the value of Bitcoin increases everyday while Naira decreases , then business organizations will definitely embrace Bitcoin as a medium of exchange. Also if the difficulties being encountered while trying to make foreign transaction either through bank or debit card, persists, Nigerians will have no choice but to resort to Bitcoin .
Over the past few months(years), the need to make international transactions has spiked the adoption and utilization of bitcoin. Amazingly, this year, 2019, the peer to peer bitcoin trading in Nigeria increased by over 1, 500%, surpassed by only China.
The situation in Nigeria can be likened to that of Zimbabwe whose fluctuating economy led to them resorting to bitcoin as a storage of value. Zimbabwe got to a point that they had the highest bitcoin price in the world. Right now, Zimbabwe has developed their own cryptocurrency known as Petro.
IS THERE ANY BITCOIN ATM IN NIGERIA AND WHERE IS IT LOCATED?
Unfortunately, there is no bitcoin ATM in Nigeria. However, with the growing Nigerian acceptability of bitcoin, it is expected that soon, Nigeria will boast of many Bitcoin ATM machines.
It is necessary for every bitcoin legalized country to have Bitcoin ATM for ease of access and transaction.
The growing interest in Bitcoin over the years has led to the emergence of over ten Nigerian bitcoin exchanges , namely;
- Luno (present in Nigeria, South Africa, Singapore, Malaysia and Indonesia)
- Local bitcoin
- Nairex (This is the largest bitcoin exchange in Nigeria)
- Mycelium local trader
The popularity of bitcoin is unstoppable. Nigeria as at December, 2018 was ranked second globally in bitcoin trading despite the threat and efforts of the Central Bank of Nigeria to ban bitcoin transaction in Nigeria.
Bitcoin has become currency of interest and choice for Nigerian enterpreneurs and business organisations as it allows free and quick transaction with foreign business counterparts without any problem. With Bitcoin, entrepreneurs are able to bit the Naira’s volatility and the control exercised by the central government and Central Bank of Nigeria.
In a nutshell, the two main reason why bitcoin may displace Naira in Nigeria are; the continuous depreciation in the value of Nigeria and the the appreciation in the value of bitcoin. Secondly is the ease of international payments using bitcoin unlike the use of the local currency and the debit card.
Nigeria is simply a perfect example of cryptocurrency -friendly country. The popularity and acceptability of Bitcoin in will see no end in the country.