Many predicted a short lifespan for Bitcoin in Nigeria. However, they have started withdrawing their predictions due to the continuous adoption of Bitcoin in Nigeria. Even the directives of the Central Bank Of Nigeria prohibiting banks and other financial institutions from transactions involving cryptocurrencies have not crippled the adoption of Bitcoin In Nigeria. Against all odds, it has continued to get more attention from curious citizens.
According to Chainanalysis Global Crypto Adoption Index, Nigeria ranked sixth on a list of the top 20 countries globally with the highest grassroots crypto adoption. There is no smoke without fire; this article points out factors responsible for Bitcoin’s upward trajectory in Nigeria.
5 FACTORS FUELING BITCOIN ADOPTION IN NIGERIA
Bitcoin has found its proverbial home in Nigeria due to the factors fueling it. Nigeria continues to champion the Google trends chart regarding knowing more about Bitcoin. The following are responsible for Bitcoin adoption in Nigeria.
1. Financial Rewards
Nigerians can never be in the dark regarding knowledge of ground-breaking innovations like Bitcoin that come with financial rewards. Innovations with financial rewards can quickly capture the attention of Nigerians once tested and trusted. Such an idea is the same as the adoption of Bitcoin in Nigeria. The fact that Bitcoin, when bought with little fiat currency like the naira, can be sold at a very high rate, thus prompting high returns, which many tagged as profit.
Investment in Bitcoin in Nigeria has continued to increase because it does not require large amounts of capital; anyone can do it and come with potential profits.
2. Nigerian Population
Nigeria’s population has continued to fuel the adoption of Bitcoin in Nigeria. Nigeria’s population is over 200 million, equivalent to 2.64% of the world’s total population. 53.7% of this population is between the ages of 15 to 65 and a median age of 18.
With this, Nigeria has one of the largest youth populations in the world. Many knowledgeable youths in Nigeria are tech-oriented, which has opened the country to the digital economy.
3. Job Opportunities
Unemployment has continued to bedevil Nigeria. As it stands, the unemployment rate in Nigeria is around 33%. Cryptocurrency as innovation has afforded Nigerians job opportunities such as NFT marketing, writings on cryptocurrencies, software engineering, crypto-currency analysis, and blockchain engineering, among others.
Vibrant Nigerian youths have been able to carve a niche for themselves with the help of cryptocurrency. Some even take advantage of converting bitcoin to naira as a business. Hence, this opportunity keeps fueling the adoption of Bitcoin in Nigeria.
4. Local Currency Instability
The adoption of Bitcoin in Nigeria, just as it is in China, has come as a way out of the incessant fluctuation of the naira. To many, it is safer to store their money in digital assets. Since Bitcoin does not have one domain, the money traded is not affected by the inflation rate of one country. This allows Nigerians to shield their earnings from an unstable economy. The instability of the local currency continues to lend credence to the adoption of Bitcoin in Nigeria.
5. Displacement Of Third Parties
Nigerians continue to adopt Bitcoin because of its security in eliminating third parties like banks and the government. With Bitcoin, you can transact directly without the interference of a third party.
This is possible through peer-to-peer platforms. Also, anyone can use Bitcoin and it is leaderless. The fact that Bitcoin is not regulated by the government keeps advancing its adoption.
Other factors include healthy saving culture, jet-like transactions, and trouble-free national and international transactions.
In conclusion, the adoption of Bitcoin in Nigeria has increased due to the aforementioned factors. Bitcoin continues to wax stronger in Nigeria, and according to the trading platform Paxful, Nigeria is now second only to the USA for bitcoin trading.
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