In the previous five years, Nigeria has marketed 60,215 Bitcoin, rated at over $566 million which, asides the US, is the biggest amount worldwide on Paxful, a prominent peer-to-peer Bitcoin marketplace.
The data which was gotten from Coin Dance reveals that from the beginning of May 2015 to the middle of November this year, bitcoin exchange in Nigeria have improved annually at least 19% in proportion since 2017, and the biggest volume (20,504.50) was exchanged in 2020.
Bitcoin exchange had its biggest surge of 30% this year in the course of the national lockdown in the country and the biggest amount exchanged in the course of the height of the pandemic. Between January and September, Paxful documented a 137% boost in new registrations in Nigeria.
Peer-to-peer (P2P) trades, which are decentralized outlets that directly links buyers and sellers without third parties are the most prominent means of acquiring bitcoin in Africa because users do not have to bother about cryptocurrency restriction by the government.
Paxful is the biggest outlet for P2P trade in Africa and surpassed LocalBitcoins in June this year to be the biggest P2P bitcoin marketplace in the world, regulating 52% of the market share.
The company revealed that Nigerians make about a quarter of its client base with 1.3 million registered accounts. “They mostly use the platform for peer-to-peer and arbitrage trading,” says Nena Nwachukwu, Paxful Nigeria regional manager. “Remittances is also a popular use case.” Nwachukwu says bitcoin transfers are “much cheaper and faster than using traditional money transfer operators.”
“The lack of bitcoin liquidity was the first obstacle to solve to introduce bitcoin to Africa,” says Ray Youssef, co-founder of Paxful.
Nigerians are mostly constrained on multinational outlets like PayPal.
“People want to be able to buy and sell, transact internationally and the more the traditional channels are being restricted the more people trade crypto and mainly bitcoin,” explains Eleanya Eke, co-founder of Buycoins Africa. “And the best thing about it is that it’s almost impossible to stop. If you block the exchange it moves to Peer-to-peer platforms that are non-custodial.”
“Globally, there was a shift to online transactions from the physical,” says Osaretin Victor Asemota, a Nigerian tech investor. “In Nigeria, as banks were closed, the agency outlets recorded much higher transaction volumes. I think this shift was inevitable, and it is not a temporary pandemic boost.”
Grace is a content and creative writer, social media manager, an author and the founder of Author’s media.