Do you know that many Nigerians have become millionaires from investing in cryptocurrency? The cryptocurrency market is relatively new but it has seen a massive amount of growth in its short time of existence. What reasons have driven the adoption of cryptocurrencies in Nigeria? Here are a few motivations that have fueled the growth of this market in the country.
Failure of the traditional banking system
The ease of cryptocurrency use.
The drive of young Nigerians to seek out a means for achieving financial freedom in the constantly oppressed economy of the country has led to the adoption of blockchain technology. The Nigerian economy is not the best in the world; it’s often referred to as a developing economy. The market economy in Nigeria is hard to get into seeing that the country denies or can’t provide the necessary environment for small businesses and entrepreneurs to grow. Cryptocurrency trading has provided one of the best ways for Nigerian youth to seek greener pastures. The good news is that the cryptocurrency market is young and provides a level playing ground for both Nigerians and people elsewhere.
The problem with traditional money including the Nigerian naira is that it’s always going down in value. Worse still the central bank of Nigeria often devalues the Naira.
The inflation rate in Nigeria is 17.71 percent as of May 2022. This went to a large number in comparison to some other countries. Most Nigerians see cryptocurrency as a way to get into other currencies and hedge against the risks of saving their money in the Nigerian currency. This is because they know that most cryptocurrencies can hold their value and there is little chance of inflation. In a survey recently conducted by a journalist. It was shown that 1 in 4 online Nigerian men-owned some coin with Bitcoin being the most popular.
The Nigerian traditional financial services industry is very bad. Imagine having to wait for hours in a Que at the bank before you can process a single transaction and the outrageous fees the bank charges you for sending money abroad.
A friend Dozie once wanted to send money to a business partner in China. He and I went to the bank to make the transaction. But after waiting in line for hours they told us that we couldn’t make the transaction that day.
The bank said that the portal had closed for the day. Eventually, we were able to make the transaction but we had to wait for days before the recipient received the money.
This poor service by the Nigerian banks and the difficulty of accessing foreign exchange have led many to see cryptocurrency as the best alternative to traditional banking systems, because of its very low transaction fees,
Many young Nigerians prefer to send bitcoin and other cryptocurrencies instead of the usual fiat currency. This is increasing the popularity and adoption of cryptocurrency in Nigeria.
In addition, Crypto is easy to get into.
Once you have your smartphone, you can download a wallet and buy any coin of choice, and send it to whomever you want. It doesn’t require lots of paperwork and it’s very private.
The fact that it is easy to get into crypto makes a lot of Nigerians choose it over the stock market and other financial markets available. The high liquidity available in the cryptocurrency market convinces us that we can get out of any bad investments we make almost instantly.
Finally, If you are looking for a growing market to invest in, the Nigerian market for cryptocurrencies is large and growing. And there is an abundance of skilled and unskilled crypto enthusiasts who you may need If you are building a project
In the space, the Nigerian market and its communities can be a real source of investment.