Nigeria has witnessed a recent spike in bitcoin adoption, with the P2P markets setting a new record for trading volume thus far during the week of the 16th of December. Nigeria comprises the most recent African nation to experience a spike in cryptocurrency adoption, with Zimbabwe’s bitcoin prices having been among the highest worldwide for a large portion of 2017.
Nigerian P2P Bitcoin Markets Set Record for Trading Volume
Nigeria’s local bitcoin markets have established a record high for trading volume, with nearly 1,950,000,000 Nigerian Naira worth of BTC exchange hands so far during the week of the 16th of December. According to cryptocompare, Nigerian Naira/BTC trade comprises the 23rd largest bitcoin market by national currency as of this writing, seeing 101.45 bitcoins traded in the last 24 hours. The Naira/BTC trade accounts for approximately 0.03% of global bitcoin trading.
Nigeria is reported to have experienced the second largest growth in its P2P bitcoin markets, trailing behind only China after witnessing growth of approximately 1,500% during 2017.
Nigerian Bitcoin Adoption Swells Due to Fallout From 2016 ‘Dollar Crunch’
Manasseh Egedegbe, a Nigerian investment manager, recently told media of his decision to use bitcoin in 2016. After Nigeria’s central bank enforced strict capital controls designed to limit the use of U.S dollars throughout the nation. Mr. Egedegbe then turned to bitcoin, stating “I was able to use bitcoin to do just one transaction and then I got hooked.”
Mr. Egedegbe states that many Nigerians have been attracted to bitcoin solely for speculative purposes. He states that some Nigerians have grown tired of “seeing the price skyrocket,” and now “want a piece of the action.”
Nigerian Bitcoin Exchanges Proliferate
October saw the launch of two new Nigerian exchanges: Bitkoin Africa, cofounded by Timi Ajiboye; and Tanjalo, which was cofounded by Tim Akinbo. The exchanges appear to be establishing significant market share quickly, with Mr. Ajiboye claiming that almost half of Bitkoin Africa’s trading volume since launch took place during the first ten days of December, and Mr. Akinbo estimating that Tanjalo has facilitated close to $1 million USD worth of cryptocurrency since launch despite the company investing in “very little marketing.”
Mr. Ajiboye anticipates the future for crypto to be bright in Africa, citing the continent’s lack of “advanced financial infrastructure” as a likely catalyst for widespread future adoption.
Do you think Nigerian bitcoin adoption will continue to grow? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Coindance
Need to calculate your bitcoin holdings? Check our tools section.