Bitcoin trading in Nigeria has soared to over $1 million a week. This huge trading volume has been verified by independent sources including LocalBitcoins reveals the huge scale of Bitcoin use in the country amid significant development over the last year with various payment processors integrating the cryptocoins into their existing services.
Increasing use by importers has also lead to increased Bitcoin demand as the number of business using Bitcoin to trade with china for resources and products has seen a sharp increase. Currently exempt from taxes etc, Bitcoin has provided business with an alternative to the Naira for trading purposes as Bitcoin’s instant international transactions have proved a vital benefit. Traffic to Bitcoin websites has reflected the surge in interest as LocalBitcoins saw a 16% increase in Nigerian users this year.
Some have attributed the current rise in Bitcoin use to the ever growing MMM scheme which is in operation. While we have discussed the various risks involved with the scheme, it seems popularity has remained high as Bitcoin was also integrated as a payment method for users wanting to participate.
To conclude with the increasing demand of Bitcoin in Nigeria, exchanges such as NairaEx have become much more integral in maintaining trading volumes. Nigeria has been highlighted as one of the largest Bitcoin consumers as the extremely varied economy including merchants, importers, and property owners can benefit hugely using cryptocurrencies not only as a means of transferring assets but also a mode of identity verification as discussed before thanks to the BenBen project.