Find out everything there is to know about cryptocurrencies and their rise in Nigeria.
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Since Bitcoin launched in 2009, some twenty thousand other cryptocurrencies have come to market. Crypto is hugely popular in Nigeria and throughout the world, despite the fact that cryptocurrencies can be incredibly volatile. Despite its popularity it is a controversial topic, and currency, which many countries are also seeking to control. For example, in India they are discussing banning cryptocurrencies entirely. This is not the case everywhere. In recent months, Bitcoin’s value has dropped 72% compared to its record-breaking value last November. Despite crashes like this making headlines, people in Nigeria are keener than ever to use crypto.
Crypto Crash
Whenever a cryptocurrency experiences a significant downturn in value, interest in it wanes and people use it less. Eventually, however, it may start to appreciate and as it does this, its usage and popularity both increase.
What also happens is that when a cryptocurrency loses value, it becomes much cheaper to purchase. People take advantage of its low price and purchase it, hoping to sell it at a later date when it’s become more valuable.
It wasn’t just Bitcoin that recently experienced a significant decrease in value; many other cryptocurrencies did too. As markets recuperate, something interesting has been happening: there’s been a high level of interest in crypto, particularly from people living in Nigeria.
Google Trends
A research team from CoinGecko compiled data looking at Google Trends search terms relating to cryptocurrencies. They included a total of 15 countries in the report, one of them being Nigeria.
The purpose of this was to see what countries, if any, had a growing interest in crypto following the recent crash. Of the 15 countries involved, it was Nigeria that scored the highest. There were three key phrases that Nigerians searched for the most. These were: ‘cryptocurrency’, ‘buy crypto’ and ‘invest in crypto’.
The Biggest Cryptocurrency
Bitcoin was the very first cryptocurrency. It first came out in 2008 and became publicly available in 2009. Since then, it’s consistently been the top cryptocurrency in terms of market share. As of August 2022, this is approximately 40%.
Even though Bitcoin has the biggest market share and is the best-known of the cryptocurrencies, it wasn’t the most searched-for one, according to the study. That honour goes to Ethereum. Of the 15 countries involved in the study, people in 14 of them searched for Ethereum more than Bitcoin.
At the minute, Ethereum is the second-biggest cryptocurrency, with its market share standing at roughly 19%. This particular cryptocurrency is attracting attention because of The Merge. This is a much-anticipated upgrade to the Ethereum system and network that will make it considerably more eco-friendly, secure and scalable. It’s slated for a Q3/Q4 2022 release, with a soft deadline of 19 September in place; this may well change, however.
Use of Cryptocurrencies
It’s thought that cryptocurrencies are popular in Nigeria – and many other African countries – because the country’s basic financial services are lacking. A growing number of people living on the continent seem to favour using crypto as opposed to fiat currencies (traditional, regulated currencies such as the Nigerian naira).
Cryptocurrencies can be used for storing assets as well as making online transactions. They’re anonymous by nature: there’s no middle-man involved and personal details aren’t required for transactions to go ahead. Because of the privacy they offer, they’re the preferred payment method for many Nigerians.
Lots of people in Nigeria and around the world enjoy playing video games over the internet. Different nations enjoy different games, for example, the FIFA series are among some of the most popular games across Africa, especially in Nigeria. Meanwhile, FPS (first-person shooter) games are very popular in Asian countries where games like Call of Duty: Infinite Warfare dominate the Indian and Iranian markets. Crypto is an ideal payment option for this. It’s also suitable for online gambling. A growing number of global sites, including many of the best online casinos in India, allow players to use Bitcoin, Ethereum and other widely-used cryptocurrencies.
One of the advantages is that you can access these games from anywhere as they are all online. To find out exactly which sites use cryptocurrencies you can read casino reviews – you can also discover the casinos that offer bonuses. Play all the classic games including poker and baccarat, and new exciting slots all with your crypto wallet. Casinos aren’t the only ones accepting cryptocurrencies. E-commerce is another common use for cryptocurrencies, sites such as Expedia have been accepting them for hotel bookings since 2014.
Nigerians generally prefer crypto because it’s anonymous and secure, with fast transaction speeds. Although crashes can be devastating, wiping off huge amounts of value, when the price rebounds, it can be lucrative for those who have made investments.
What Happens Next?
It’s clear from the study that curiosity about crypto is very high in Nigeria. What’s sure to happen is that the usage of cryptocurrency in the country is going to increase quite dramatically. More and more people are likely to favour Bitcoin and other cryptocurrencies instead of the naira; those who already have crypto may start using it more often. If cryptocurrencies start gaining value, lots of people in Nigeria could benefit a lot.
