Connect with us

CRYPTOCURRENCY

Nigerians bypassing bank transfers with crypto

Experts give vital insights to why Nigerians are fast adopting crypto, and the advantages crypto assets bring.

Published

on

The high penetration of mobile phone usage in most African countries, particularly in Nigeria, has resulted in the rise of remittance rates and payments for goods and services. According to the World Bank, Africa’s largest economy is one of the six largest recipients of remittances in the world, attracting $24 billion in 2019, which made up 5% of the country’s GDP.

The financial market turmoil triggered by COVID-19 has definitely changed the way Nigerians view the whole financial system, as data also obtained from Google trend, shows Nigeria leading the pack around the world in Bitcoin searches.

So, it not surprising that a significant number of young Nigerians, and small business owners avoid Nigerian banks, because of their stringent capital controls on outflows, relatively high transaction costs, and inflexible exchange rate system. However, in the crypto-verse, an entity can move over $250,000, with a transaction charge of less than $5, that can be received in minutes anywhere in the world.

Jens Ischebeck, a renowned Fintech publisher, in a note shared with Our source, gave vital insights on why Africans are fast adopting crypto, and the advantages that crypto assets bring:

“Most African citizens have started shifting their hopes to the use of crypto, to escape numerous constraints faced with the traditional money transfer services, including cost, speed, and inconveniences.

“The main benefit is the overall lower cost to the end customer, which allows migrant workers to send substantial amounts of money to their loved ones in their home countries, at fairer prices. Also, there is a high unpredictability in the local currencies in most African countries; for instance, when South African rand became a volatile currency, most people switched to crypto, to seek security.

“The transaction is safe, and the companies don’t hold the virtual currency for more extended periods; thus, the operation takes a short time.”

Recent statistics obtained from Useful Tulips, a BTC analytic data provider, stated that Nigeria leads Africa Bitcoin’s peer to peer lending in 2020, posting weekly P2P volumes of about $8 million, followed by South Africa and Kenya posting about $2 million weekly.

Nena Nwachukwu, Nigeria’s Regional Manager at Paxful, in an exclusive interview with Nairametrics, spoke on why many Nigerians are now turning to crypto as the viable option for transactions and store of value.

“This year, Cryptocurrency popularity and usage by Nigerians have grown by leaps and bounds. With the COVID-19 pandemic and CBN’s Naira devaluation, more people are actively searching for means to secure their wealth.

As traditional investment tools like Real Estate, Stocks, Treasury bills etc. are too complicated to understand & acquire, Crypto-currency is the next best choice as it is very easy to access from any internet-enabled device.

“According to a recent Crypto Adoption Index report published by Chainanalysis, Nigeria currently ranks number 8 out of 154 countries in the use of Cryptocurrency; this comes as no surprise considering the urgent need for Nigerians to protect the value of their money.”

She also spoke on the high intellectual know-how, many Nigerian millennials have on using crypto.

“Our Nigerian customers are also very knowledgeable and have evolved from using crypto/Bitcoin as only a form of speculative investment to making online payments, cross-border remittances, freelancer payments, and E-Commerce.

“With our second cryptocurrency (Tether USDT, a stablecoin pegged to the US Dollar) our customers are learning to further secure their Bitcoins from volatility, by converting BTC to USDT and lock its fiat value.” 

It’s fair to say that the present complexity prevalent in Africa’s banking industry or arbitrary misappropriation of capital by some African governments has made young African millennials attracted to the most disruptive financial asset in the modern era.

Advertisement
Click to comment

Leave a Reply

CRYPTOCURRENCY

Demand for Bitcoin is growing high amid tightened supply

The amount of illiquid Bitcoin supply in the network has grown more than the circulating supply since 2017.

Published

on

Crypto experts argue that such strong demand in the Bitcoin market is largely attributed to the fact institutions are coming.

The market liquidity is tightening at the flagship Crypto market, as there are less than 4 million BTCs in circulation available for upcoming investors including the likes of  Grayscale, Paypal, Microstrategy, hedge funds, and so on.

Only 21 million Bitcoins are ever going to be produced in total, and presently, there is about 18.9 million Bitcoin in circulation.

This shows a differential of about 2.1 million Bitcoin that are left to be produced, not forgetting about 4.5 million Bitcoins that have already been lost forever.

This also means that liquidity is drying up, as demand for the world’s most popular crypto hits record highs

The amount of illiquid Bitcoin supply in the network has grown more than the circulating supply since 2017.

Meanwhile, liquid supply continues to see a steep decrease.

According to Yann & Jan:

“Float in the network is drying up faster than ever.
“Currently, about 78% of issued bitcoin’s are either lost or being hodled, leaving less than 4 million bitcoins to be shared amongst future market entrants (incl. Paypal, Square, SP500 Companies, ETF’s, etc).

It’s also important to understand Institutional investors love transparency, regulation meaning the more regulated Bitcoin mechanisms such as regulating Crypto exchanges handling it, the more value major institutions will place in it, thus making Bitcoin a less volatile asset in the long term.

Glassnode also revealed that a million Bitcoins (BTC) or almost $30 billion in actual prices, disappeared from the liquid supply in 2020. This process even outperformed the inflow of new Bitcoins (BTC) into the network:

“Currently, we are at a stage in which the illiquid supply is growing more than the total circulating supply according to the report. A similar pattern presently played out again during the bullish rally of 2017.”

Continue Reading

CRYPTOCURRENCY

Coinbase executes over $1 billion Crypto trades for world’s biggest clients

The world’s most valuable crypto exchange revealed it has executed $1 billion-plus crypto trades for some of the biggest institutions in the world.

Published

on

In its  recently filed documents with the U.S. Securities and Exchange Commission, the world’s most valuable crypto exchange, Coinbase revealed has executed $1 billion-plus crypto trades for “some of the biggest institutions in the world.”

The leading American Crypto exchange, however, revealed its major objective remains to provide credible crypto services for both institutional and retail clients as crypto continues to expand across financial sectors, according to Coinbase SEC filing.

“Our goal is to become the primary financial account for our retail users and the one-stop-shop for institutions’ crypto-asset investing needs. To achieve these goals, we are developing and launching innovative products and services across our platform to serve each customer’s distinct needs. For example, in 2020 we launched support for post-trade credit to enable institutional customers to instantly invest in crypto assets without pre-funding their trade. For retail users, we have added support for staking, offering our users a simple way to earn rewards on their crypto asset holdings.”

Recall, the fast-rising American crypto exchange financials revealed the crypto startup grew rapidly from 2019 to 2020.

Coinbase was founded was about 9 years ago and allows its customers to buy and sell Crypto Like Bitcoin, Ethereum Polkadot. The fintech company had earlier raised over $540 million in funding as a private company.

In 2019 Coinbase’s net income was- $30.4 million against $533.7 million in revenue. Just last year the crypto juggernaut net income rose to $127.5 million against $1.28 billion in revenue.

The unicorn grew just over 139% in 2020, a massive improvement in its 2019 results.

In an IPO filing, Coinbase says “Address not applicable” in the spot companies usually list their headquarters.

In a footnote, it explains “In May 2020, we became a remote-first company. Accordingly, we do not maintain a headquarters.”

As a risk factor, it cites: “The identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi’s Bitcoins.”

Continue Reading

CRYPTOCURRENCY

ardano explodes, more valuable than XRP, Tether, Polkadot

The fast-rising valuable crypto asset received a fresh wave of a buying spree, seeing its price post a new all-time high of $1.29.

Published

on

Cardano, in the last few weeks, has been enjoying massive buying pressure amid the record sell-offs sighted in other crypto assets, like Bitcoin, Ethereum, and others.

The fast-rising valuable crypto asset has received a fresh wave of buying sprees, seeing its price post a new all-time high of $1.29. This makes it the third-ranked crypto by market value.

At the time of writing this report, Cardano was trading at $1.265645, 20.45% on the day. It is the biggest one-day percentage gain since February 20.

Such gains pushed Cardano’s market value to $39.2 billion, or 2.75% of the total cryptocurrency market value. At its highest, Cardano’s market cap value stood at $38.4 billion.

  • Cardano had traded at a range of $1.241612 to $1.270833 for the day.
  • Over one week, it has seen a surge in value, as it gained 34.8%.

Highly revered crypto analyst/trader, Michaël van de Poppe, also recommended the fast-rising crypto asset.

In a video (titled “Cardano Breaks $1 But $10 Is Possible In This Bull Cycle! Here’s Why!”) released recently, the crypto pundit told his followers on his YouTube channel that:

“Cardano going towards $10 is not that weird to calculate from here, especially given the fact, and I’ve been saying this in the past week multiple times, especially given the fact that Cardano and mostly all the Bitcoin pairs are just barely waking up. So there’s still much more to gain for the Bitcoin pairs.”

  • Lately, Cardano (ADA) has been tipped to outperform, on the bias that it had its smart contract launch last month, which will lead to a significant amount of applications built on Cardano in 2021.
  • This means that more developers will see it as an attractive medium for building their desired apps.
Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement unmute the video for sound
Advertisement
Advertisement

Facebook

Follow us on Twitter

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 92 other subscribers

Trending