- A survey revealed that 32% of Nigerians are active participants in cryptocurrencies
- The scale of crypto asset trading in Nigeria exceeds almost all spaces in the world
- Nigerians look at cryptocurrencies as an alternative to dodging foreign currency limitations
The scale of crypto asset trading in Nigeria exceeds almost all spaces in the world. This reflects a significant loss of trust in more conventional forms of investment.
The life-changing experience of Nigeria’s Tola Fadugbagbe in Bitcoin trading
Tola Fadugbagbe recollects his journey of shifting to Lagos from his little south-western town about ten years ago. His dreams were big with brighter prospects. Instead, the 34-year-old indulged in a series of odd occupations earning the minimum wage to get through. His journey represents a classic story of many young Nigerians who are just trying to survive through life.
Finally, in 2016, he established a fascinating interest in Bitcoin through the online adverts for Bitcoin. That marked the beginning of his cryptocurrency journey. Recently, in an interview with BBC, Tola explained how he began with intensive research. He added that he spent hours daily watching YouTube videos and indulging in extensive reading about Bitcoin.
He started with a mere $100 or $200 due to lack of money. This decision proved to be a significant game-changer in his life. Tola now deals full-time and educates budding traders too. Currently, he stated that he holds cryptocurrency worth more than $200,000 in his ownership.
Tola Fadugbagbe further highlighted that he is all set to move into his house, building himself. He appreciated the value of cryptocurrency in his life as a credit to it; he also owns a farm today.
He is completely uninhibited about the idea that he could be possibly encouraging an inflammatory investment bubble that might burst anytime. Instead, he added that no Nigerian enters the space of cryptocurrency and wishes to go back.
Thus, success stories like Tola’s attract thousands of Nigerians to enter the space of digital currencies, especially Bitcoin.
Nigeria’s prospective growth in Bitcoin trading
Statista, a data platform, conducted a 2020 survey to estimate cryptocurrency users’ status in Nigeria. The survey revealed that 32% of Nigerians are active participants of cryptocurrencies. The percentage represents the highest segment of any country across the world.
Evaluations reflect that from 10 countries ranked in terms of trading volumes, Nigeria held the third position after the US and Russia in 2020. The country generates transactions worth more than $400 million.
Although Nigeria managed to recover from its second recession within five years, the taxing economic climate still exists. Thus, it automatically makes alternative sources of earnings and alternative currencies attractive.
Michael Ugwu, the creator of a media firm in Lagos, traded his land in 2018. After the sale, he realized the need to study and experiment with new investment opportunities. The former banker thinks cryptocurrency represents an evolution of finance, defines it as finance 2.0. Despite the currency’s key feature of volatility, Michael notes it as a valuable instrument to hedge against inflation.
Thus, Nigerians look at cryptocurrencies as an alternative to dodging foreign currency limitations.
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