Nigeria is Africa’s Biggest Crypto Market.

Date: 17-11-2020 4:09 pm (2 months ago) | Author: kacy lee
- at 17-11-2020 04:09 PM (2 months ago)

Cryptocurrencies are fast entering the mainstream world of finance and business, and are slowly gaining acceptance as a legitimate form of value, even if the stated aim of replacing traditional currency is a long way away. In this regard, it is a little surprising, but extremely encouraging to note the progress that cryptocurrencies are making in Africa. Within Africa, it is Nigeria that is leading the crypto conversion wave.

At present, Nigeria leads the rest of the continent in the use of Bitcoin. In fact, the volume of Bitcoin transactions in Nigeria is more than the rest of Africa combined, so it is no surprise to see that some of the leading crypto brands, such as Bfinance, Paxful, FTX, have begun to enter Nigeria. In terms of peer to peer lending (P2P), Nigeria led the rest of Africa for the month of October 2020, posting P2P volumes of over $32 million, while South Africa, in second place, had only $9 million, followed by Kenya with $7.4 million.

One of the biggest reasons for the wave of crypto in Nigeria is the country’s demographics. Nearly 32% of the country’s population can be classified as part of the youth, which means that there is a ready market of people who are comfortable using technology and are also up to date with regard to economic trends. The naira has been susceptible to high inflation in recent years, so people are choosing to invest and save their money in bitcoin and other cryptocurrencies to better protect their value. Transaction fees are also extremely low, adding another attractive reason for people to adopt crypto assets. With regard to Nigeria, recent protests against police violence saw many bank accounts of protesters being frozen by the government, but cryptocurrency assets were crucial in circumventing those restrictions, as well as raising donations from overseas.

Another area where cryptocurrency has very high potential is in online casinos. Gambling is a very popular activity all across Africa, and especially in Nigeria, specifically sports betting. Even though Nigerian law does not allow online gambling, there are loopholes which allow people to use offshore gambling sites and operators to be able to participate in online gambling. This has been given an added boost by the popularity of cryptocurrencies in Nigeria as well, since there are a number of casino operators who have begun to offer cryptocurrency options for withdrawals and payments on their sites. Such sites, popularly known as crypto casinos, have been gaining in popularity in the country, and given how popular sports such as football and boxing are, along with the betting volumes, it can be expected that crypto casinos will be the next big thing in the gambling space in Nigeria.

Bucking the trend with regard to online transfers, most cryptocurrency transfers to and from African countries are under $10,000 in value. While crypto assets are being generally used by large corporations and financial traders globally, Africans are using it for daily activities and commerce, with individuals and small businesses accounting for the majority of these transactions. The lack of financial inclusion across the continent has meant that mobile money has become widespread, and cryptocurrencies are considered in the same basket - easier to understand and use than to go and open a bank account, for example. Thus, people, especially younger members of the population, have been able to use the cryptocurrency boom to start businesses and even work for clients abroad, giving them a pathway towards earning a decent living which was not available to their parents, for example. As stated earlier, the volatility of African currencies also adds to the appeal of cryptocurrencies.

Posted: at 17-11-2020 04:09 PM (2 months ago) | Addicted Hero
- Damovo at 17-11-2020 05:40 PM (2 months ago)
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Posted: at 17-11-2020 05:40 PM (2 months ago) | Newbie