Nigeria Into The Cryptoverse - More Than A Third Of Nigerians Have Invested In Bitcoin And Other Cryptocurrencies
KuCoin, a renowned cryptocurrency exchange, recently published a paper titled "Into The Cryptoverse," in which they discussed the adoption of Bitcoin and other cryptocurrencies by different countries' populations.
Nigeria into the cryptoverse, why, because Nigeria is the most remarkable among them, with 33.4 million adults aged 18–60 owning or trading bitcoin or another cryptocurrency in the last six months.
This startling figure of 35% of adults is even more perplexing when one considers that, according to the survey, just 51% of Nigeria's whole population has access to the internet as of January 2022.
86 percent of Nigerian internet users are familiar with cryptocurrencies as an investment instrument, out of a population of 51 percent.
COPYRIGHT_TNB: Published on https://www.thenigerianblogger.com/nigeria-into-the-cryptoverse/ by Abeo Bunkechukwu on 2022-04-13T13:04:09.056Z
According to Google Trends, Nigeria had the highest number of Bitcoin searches in early 2021, according to the research.
According to a survey of the penetrated 35%, 70% of those users intend to increase their holdings in the near future.
Another 6% of the population who are not currently invested were polled and said they plan to invest in the next six months.
According to the analysis, Nigeria's currency, the Naira, has devalued by 209 percent in six years.
The rate of Bitcoin acceptance is far higher in communities that have a need for it rather than just a desire for it.
The depreciating Naira prompted earlier adoption than most, with 37% of people investing or trading in bitcoin for more than three years, and another 27% starting within the last six months.
According to Statista, which was mentioned in the story, the young population of Nigeria, whose median age is 18.4 years old, is driving the desire to opt out of the existing system.
This helps to explain why 52% of Nigerians under 30 have invested in bitcoin and other cryptocurrencies.
KuCoin discovered an intriguing statistic in a study of those currently invested in bitcoin and other cryptocurrencies: 50 percent gender parity.
When economic need, population young, and innovation converge, gender appears to have little bearing on the adoption of an emergent monetary system.
In Nigeria, low-time preference appears to be shaped by entrepreneurial zeal, with 62% of investors feeling this developing system is the future of finance and 50% indicating they are in it for the long haul.
40% of investors want to use their profits to establish a business, 36% want to diversify their income, and 26% want to rely on their investments as their principal source of income.
Diversification of portfolios, or the lack thereof in some circumstances, is an intriguing statistic among Nigerian investors.
According to the report, these investors allocate 60% of their portfolio to cryptocurrency, 20% to cash or bank deposits, and 7% to foreign currencies, with additional financial instruments filling in the gaps.
This means that over 52% of investors are allocating more than half of their portfolio to cryptocurrencies.
Over 90% of these investors' assets are held in bitcoin or another cryptocurrency, according to a little more than one-fifth (22%) of them.
This subset is slightly older and less experienced with other financial products, with a preference for money transfers and transactions over trading.
KuCoin is rated poorly by its users, with an average rating of 1.7 out of 5 stars based on roughly 600 Trustpilot ratings.
Several unfavorable reviews mention issues with customer service, withdrawals, and depositing money.
In this category, Binance comes out on top. Binance and KuCoin both offer low trading fees that start at 0.1 percent, although Binance's is lower at 0.075 percent compared to KuCoin's 0.08 percent when utilizing their native tokens.
According to another poll cited in the paper by KuCoin, 65 percent of these investors use peer-to-peer trading to deposit fiat for cryptocurrencies as of February 2022, after the Central Bank of Nigeria prohibited banks from supporting crypto transactions in February 2021.
KuCoin data shows a 1,386.7 percent increase in monthly transactions across African countries from January 2021 to January 2022.Within the same time frame, active users increased by 2,467.2%.
Nigeria into the cryptoverse exemplifies the need for a new monetary system that enables low-cost cross-border payments and the most secure form of global access.
Nigeria's central government has failed to adequately care for its citizens, and the country's youth have taken it upon themselves to bring about needed change.
While many in more developed parts of the world utilize bitcoin as a store of currency, the humanitarian and charitable uses of bitcoin are what actually make it inevitable.