The adoption rate of cryptocurrencies among young Nigerians has risen steadily over the previous decade. Nigeria has more bitcoin trades than any other country, indicating a lack of trust in traditional investment methods within the country. Furthermore, many young Nigerians see cryptocurrencies as a means of escaping the country’s deteriorating economic circumstances.
Crypto has become a tool for investing for many young Nigerians who are interested in digital currencies. Furthermore, a number of young Nigerians enjoy gambling and online casinos as a way to pass time. As a result, they seek the top bitcoin casinos and incentives for cryptocurrency enjoyment.
Cryptocurrency Impact in Nigeria
Without a question, the advent of cryptocurrencies has had a significant impact on the country, particularly among the youth. Crypto has helped the country expand significantly. For example, Bifxt, a Nigerian crypto-trading business, raised $15 million in Series A funding in 2020, resulting in additional jobs and investments to help the economy grow. Furthermore, crypto has boosted people’s ability to transact and make payments. Sending money from Nigeria has its challenges such as long bank queues and the hours it takes to wait for the transaction to be activated, but with the advent of cryptocurrency, money transactions have become much easier. Furthermore, the charge for transferring funds from one wallet to another is not insignificant.
Furthermore, cryptocurrencies such as Bitcoin were one of the driving causes for the #EndSARS countrywide protest. Feeding, legal, and medical expenditures for demonstrators were paid for by protest groups. As a result, mobilization was simple, and for the first several days, there was a pleasant, peaceful protest. Aside from that, cryptocurrencies have aided a number of young Nigerians to make a living. Several crypto multi-millionaires are now living off their digital currency investments.
The rising value of Bitcoin and other cryptocurrencies, on the other hand, is causing growing concern. Many analysts regard it as a high-risk wager that could result in catastrophic financial devastation for investors in the future. They also feel it has technical flaws, and that because it is based on anonymity, it could amplify scams, which are already an issue in the country. Because of this, Bitcoin has been completely “officially” banned in the country by the Government. The ban, according to a statement issued on February 7th, 2021, was enacted to safeguard the public and keep the country safe from unknown and unregulated businesses capable of carrying out unlawful operations.
Many investors’ bank accounts have been confiscated, put on hold, or frozen by the central bank as a result of the prohibition.
Trends & Projections
Despite the government’s official ban on cryptocurrency, the country has seen a surge in the usage of digital currencies for transactions, payments, and investments. Many users have discovered a way to circumvent the restriction, and because there is no formal regulation prohibiting the usage of cryptocurrencies, people can still trade and conduct peer-to-peer transactions. Following the prohibition, the volume of cryptocurrency sent from Nigeria surged to almost $132 million in March, up 17 percent from the previous month, according to a Reuters report. Furthermore, transactions increased by 25% in June compared to the prior month. As a result, Nigeria’s bitcoin market has surpassed that of the United States.
Nigeria has traded almost 60,000 bitcoins worth more than $500 million in the last five years. Since 2017, the Nigerian bitcoin market is expected to grow by at least 19 percent in volume. In 2020, the market will have traded over 20,000 volumes. One of the reasons for the market’s continued expansion is that it allows Nigerians to obtain funds in other currencies in order to protect their currency’s falling value, making it more of a business than speculation. Despite the restriction, the government launched its first digital currency as the market grows, indicating that cryptocurrencies in Nigeria have a bright future.
For Nigeria’s youth, the crypto sector remains an important source of revenue. With the success of cryptocurrencies, persuading this segment of people that meddling in the business is a bad idea is difficult, especially in a country with many exciting potentials but few functioning infrastructures. As a result, the rise of cryptocurrencies is beginning to have an impact on Nigeria, but in a positive way.