In recent years, more Nigerians have increased their dependence on cryptocurrency technology as the digital economy builds many bridges to social advancement for households in the most populous black nation in the world.
More than ever, Nigerians both young and old are looking to cryptocurrency to elevate them socially and economically. Some believe that the cause of this may stem from the rise in Nigeria’s digital economy which grew by 15.09% in real terms in Q2 2020, far higher than the 9.99% recorded in Q1 2020 and 9.01% in Q2 2019. This was not always the case.
Over the past years (and even decades) Nigeria’s financial markets have crumbled under the pressure of its undiversified economy and the poison of corruption injected into the veins of the nation by what many have described as an out of touch political ruling class. Whatever the cause of the nation’s fall from economic grace may be, the average Nigerian has no choice but to find a way for themselves and their families.
In an explanatory note to Nairametrics, Ekene Ojieh, Head of Public Relations and Corporate Strategy at Buffalo Chase says,
“Nigerians use bitcoin not just as a store of value but also as an investment. In the last 30days, bitcoin has made over 28%. Its accessibility enables anyone to send and receive bitcoin from any part of the world, unlike getting US dollars for international transactions.
Data reveals that N36 trillion is kept in banks and low yielding assets by Nigerians. Despite an increase in Nigeria’s inflation rate that rose to 12.82%, deposit rates, fixed deposit rates, and risk-free rates such as treasury bills have been driven to 6% per annum. In more recent times, a growing number of Nigerians have looked to Bitcoin and other cryptocurrencies as better alternatives.