Bitcoin Price Spikes to $1, 600 te Nigeria – The Merkle

Bitcoin Price Spikes to $1, 600 in Nigeria - The Merkle

Nigeria is displaying an insatiable appetite for bitcoin right now. NairaEx, one of the leading cryptocurrency exchanges ter the country, is trading BTC at almost US$1,600 each. Considering how the market average is just above US$1,Ten right now, the situation raises a lotsbestemming of questions. Bitcoin is being embraced by the Nigerian population by the look of things, even however no one is fairly certain spil to the precies cause for this unexpected request.

Nigeria’s Bitcoin Price is Going Crazy

It is not uncommon to see certain regions of the world trade bitcoin at slightly higher prices. China, for example, has paid a 5% premium for bitcoin for spil long spil people can recall. Indian exchanges have gone through a similar situation when the request for bitcoin wasgoed met with low liquidity. Nigeria, however, is doing things very different from those countries, spil their bitcoin premium price is much higher than one would expect.

To be more precise, trading bitcoin at NairaEx will presently cost traders 494,755 Naira. A quick currency conversion tells us that is equal to almost US$1,600 at current rates. That means Nigerian traders are – willingly – paying a near US$600 premium vanaf bitcoin right now. Albeit this bodes well for cryptocurrency valuation ter general, one does wonder what is driving this unexpected request. Moreover, it is unclear why such a steep premium price is not slowing down the request right now.

A few days ago, it wasgoed clear the weekly bitcoin trading volume ter Nigeria wasgoed on the rise. Just last week, overheen US$1.3m worth of bitcoin wasgoed traded ter Nigeria – according to Trail Blazers Nigeria – which is fairly a staggering amount. Do keep te mind this volume only represents LocalBitcoins trading and does not take exchange volumes from NairaEx into account. Interestingly enough, the current LocalBitcoins price for bitcoin is almost the precies same spil the one found on NairaEx.

Finding an explanation for this unexpected development is not effortless, however. Nigeria has seen an uptake te internet and technology use overheen the past few years, which could eventually lead to enlargened cryptocurrency adoption. However, there is also the threat of MMMGlobal, which now only accepts bitcoin spil a payment method. Even however a lotsbestemming of people know MMM is a Ponzi Scheme, Nigerians proceed to invest bitcoin into this program.

Perhaps the fattest mind shift comes from the growing number of merchants accepting bitcoin payments ter Nigeria. Thanks to companies such spil BitPesa , it becomes lighter to use cryptocurrency for everyday needs. The company recently launched a fresh feature permitting Nigerian businesses to transfer funds to Chinese vrouwen overheen the bitcoin network. More efficient payment solutions will lead to a thriving economy, all of which is made possible with bitcoin right now.

Last but not least, the local media are paying more positive attention to bitcoin spil well. An article about Satoshipay surfaced on the Nigeria Today webstek yesterday, explaining how anyone can make money with bitcoin. All signs are pointing toward a bright future for bitcoin ter Nigeria, even however it remains to be seen if thesis high premium prices will be sustained for long.

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