Nigeria’s digital economy is on the rise. With the increased poverty level, more youths, and adults are making an entrance into the global digital economy by providing digital services as freelancers.
Consequently, Nigerians have trouble receiving payments from their foreign clients. They are not allowed to use even the most famous American based Paypal, and other options like Money Gram and TransferWise is not only expensive and slow but also have an unflexible verification system.
Bitcoin, however, offers them a flexible, almost instant, and cheaper means of receiving cross border payment, like e-commerce platforms, after rendering their services to clients and companies.
The many economic problems in Nigeria, including inflation and the devaluation of the naira, have made the country’s fiat currency a poor store of value, pushing some to store their value in a deflationary currency like Bitcoin, which can protect its owners from excess money printing from central authorities and another uncertainty.
With COVID-19 pandemic still raging on and upsetting markets, Cryptocurrency like Bitcoin has outperformed the Nigerian stock market and even most global equities; only performing worse than gold. Investors attribute Bitcoin’s performance to bets/bids that have been made to hedge against inflation.
Between April and June 2020, Bitcoin has posted a gain of about 45% compared to Nigeria’s stock market that as gained less than 20%.
Also, it should be noted that Bitcoin as a market capitalization of over $178.34 billion as of June 08, 2020, it is much bigger and more liquid than the Nigerian stock market (market capitalization less than $33.5 billion dollars —N13.704 trillion est. June 08, 2020).
Like stocks and other riskier assets, Bitcoin climbed in the wake of massive stimulus packages launched by fiscal authorities and central banks around the world last month to ease the economic damage caused by the COVID-19 outbreak.
Patricia creates the perfect market; A Safe, Secure and Interactive space that can usher Africa into the Digital Age by offering Bitcoin transfers, Physical and virtual cards, buying and selling of gift cards and many more services.