In a sign of growing adoption of bitcoin and other cryptocurrencies, a report from Cointelegraph states that $3 million worth of bitcoin was traded in Nigeria last week. Tanzania and Kenya are also mentioned as countries that are showing greater interest in trading the currency.

What could have caused the spike ?

Bitcoin prices have witnessed huge volatility in the past few weeks, due to concerns about the upcoming fork.  Prices hit a low of N800,000 per bitcoin earlier in the month but have since rebounded to over N950,000 per month.

Who’s doing the buying?

While the volume of trades isn’t sub divided into individual exchanges, various KYC requirements such as Bank Verification Number, and a copy of utility bill are required before opening an account. The anonymous nature of cryptocurrencies, may mean some of the transactions can’t be traced. Some of the major bitcoin exchanges in the country include Luno, Nairaex, and Remitano.

What the rising volume means

Though the volume of trades is still quite minor compared to formal currency markets in the country, it shows increasing adoption of cryptocurrencies by Nigerians. Shopnow.ng an online store that takes payment only in bitcoin, will start operations in the country in a few days.

The volumes could also make regulatory bodies like the Central Bank of Nigeria (CBN) to pay closer attention to the growing market. A drop in crude oil prices, lead to a huge foreign exchange crisis in the country last year. The CBN was forced to adopt supply management measures.

What are bitcoins

Bitcoin is a form of digital currency (cryptocurrency), created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.

Learn more about Bitcoins here

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