Twitter CEO, Jack Dorsey, tweeted on the 13th of this month that Nigerians will lead Bitcoin. Why does Jack Dorsey believe Nigerians will lead Bitcoin adoption in Africa? Ever since the EndSARS campaign went viral on Twitter October last year, he took an interest in Nigeria even asking people on Twitter to donate to the cause with Bitcoin after the Central Bank froze protesters’ accounts.
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Bitcoin is the world’s largest cryptocurrency in terms of market capitalization. A single bitcoin is currently worth about $49,000 which is approximately 26 million Naira. Its worth was not always this high though.
Around 2011, when Bitcoin was only two years old, 1 Bitcoin (BTC) was only $1 but a lot of Nigerians either didn’t know what it was or how it worked. Some even thought it was a scam, so a lot of people did not take it seriously.
Imagine you bought 10 BTC then and held it till now, you would be a millionaire. But that’s by the way.
So Who’s Adopting Bitcoin In Nigeria?
In 2014 when BTC rose to about $500, Nigerians began to take BTC seriously. A few independent operators began to exchange it for dollars and Naira. It was a challenge at first because people barely knew what it was and what little information there was was scanty, scattered and unorganized.
Over time, experts began organizing seminars and certificate courses and more people were getting enlightened. The possibility of getting rich from BTC was too exciting and people were putting their friends and family on.
By 2020 an online survey showed that 32% of the people who were asked in Nigeria used or have cryptocurrency, making it the highest of all other countries that were surveyed.
According to Mondaq, Nigeria was recorded as the highest peer-to-peer BTC trading nation in Africa. Nigeria’s P2P BTC trading volume was higher than $99 million in the first three months of the year.
This made me wonder “why has this cryptocurrency called BTC piqued the interest of so many Nigerians?” to the point where international personalities have begun to take notice and Twitter’s CEO is predicting that Nigerians will lead Bitcoin adoption in Africa. After analyzing the current economic situation of Nigeria, I reached these three conclusions;
1. Survivors Mindset Of Young Nigerians
It is not news that Nigerians excel in whatever field or profession they find themselves. People like Agbani Darego, Burna Boy, Israel Adesanya, Don Jazzy and Chimamanda Adichie are dominating in their fields internationally.
A lot of young Nigerians are driven, innovative and entrepreneurial. The harsh economic condition of the country has taught many of us to find new opportunities and maximize them to the fullest.
2. Weak Naira and Inflation (Increase In Price Of Goods)
As inflation increases, the purchasing power of the Naira depreciates. 20,000 Naira two years ago has a lower value now. This is the cause of the rising price in many goods and services in Nigeria.
The U.S dollar is a strong and stable fiat currency. The fact that it is pegged to BTC has made it a compelling option for individuals and businesses in a market like Nigeria that face local currency volatility and inflation.
This means that as the Naira depreciates the value of BTC actually increases.
3. High Poverty Rate
Many Nigerians are battling poverty. Considering the fact that the unemployment rate in the most populous country in Africa earlier in the year was over 33%, with more than 60 million Nigerians not having jobs.
Bitcoin that has been increasing in value by more than 100% has been providing an alternative source of income to the people who have invested in and traded the BTC.
Crypto is still in its infancy and it will gain massive acceptance / utility in 20years. Everyone should buy any coin, lock it up in a wallet, save the password, and forget it.
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My name is Emmanuel Ejiga. Content lead of OG Capital
I am a writer. Technical writer, song writer, and sometimes fictional writer.