Cryptocurrency
Nigeria leads Africa combined in Q2 2020 on BTC P2P
It shows that BTC is fast gaining the trust of Nigerians for payments and transfers.
Nigerians increasing their use of BTC is no longer news, but what seems astonishing is the volume that Nigerians transacted with BTCs in Q2 2020, compared to other African countries. Data shows that the use of Bitcoin for peer to peer lending in Nigeria is on an astronomical run.
Recent statistics obtained from usefultulips, a BTC analytic data provider, showed that Nigeria led the pack with more than $34.4 million, while the closest rival, South Africa, had a transactional value of just $15.2 million during the last 90 days.
READ ALSO: Covid-19: Guinness Nigeria warns investors its results will be bad
Among top countries in the last 90 days leading in peer to peer Bitcoin transactional trades on the African continent are:
Nigeria – $34.4 million dollars
South Africa – $15.2 million dollars
Kenya – $7.8 million
Ghana – $640,000
Tanzania – $600,000
Quick Facts: In BTC’s case, peer to peer is the exchange of BTC between parties (such as individuals) without the involvement of a central authority. This means that peer to peer use of BTC takes a decentralized approach in the exchange of Bitcoins between individuals and groups.
It shows that BTC’s long-running narrative as the “digital gold” for hedging against global economic turmoil is gaining the trust of Nigerians for payments and transfers.
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The financial market turmoil triggered by COVID-19 has definitely changed the way Nigerians view the whole financial system, as data also obtained from Google trend shows Nigeria leading the pack around the world in Bitcoin searches. This is a testament to the fact that Nigerians truly love their Bitcoins.
Cryptocurrency
Investors cashing in big time, as 95% BTC wallets are currently in profit
95% of Bitcoin wallets are currently in a state of profit.
Most BTC wallets containing Bitcoin are cashing in big time, as reports seen on Glassnode’s Twitter feed showed most Bitcoin wallets in a state of profit.
According to Glassnode, 75% of Bitcoin wallets are currently profitable.
Extended periods at this level and above are characteristic of bull runs as BTC moves towards new all-time highs.
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95% of #Bitcoin UTXOs are currently in a state of profit.
Extended periods at this level and above are characteristic of bull runs as $BTC moves towards new all-time highs.
Chart: https://t.co/bxvcpcBvlK pic.twitter.com/SIxM88BdHG
— glassnode (@glassnode) August 14, 2020
How easy is tracking BTCs? It should be noted that Bitcoin is not really anonymous because all BTC transactions are kept permanently and publicly on the blockchain or ledger system, so it’s very easy for anyone to see the transactions and balances of any BTC address.
Chainalysis researchers recently explained in detail that as the rush for BTCs keeps increasing, the price will most definitely be affected. The report said:
“With more people looking to trade BTCs, which is only becoming scarcer following the recent halving, bitcoin moving from the investment bucket into the trading bucket could become a crucial source of liquidity
However, one would expect this will only happen if bitcoin’s price rises to a level at which long-term investors are willing to sell,”
READ MORE: Zoom’s market valuation hits $50 billion mark, thanks to COVID-19
The report claims the “Hodler net position change,” which provides an aggregate of long-term wallet holder behavior, has been positive on 154 of the first 170 days of 2020.
Glassnode data shows Hodlers have made a net increase of 233,000 BTC to their positions since the start of the year.
In the meantime, BTC remained confidently above $11, 000 throughout this week. Also, Bitcoin’s on-chain fundamentals point to the beginning of a potential bull market, though external market forces could still impact this possibility.
Cryptocurrency
Bitcoin could potentially become superior to cash
BTC holds a maximum supply of about 21 million digital coins.
MicroStrategy, a publicly traded company in the US valued at over $1.2 billion, disclosed via an official statement that it would be adopting the world’s most valuable crypto as a “primary treasury reserve asset”.
“Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy,” MicroStrategy CEO, Michael J. Saylor said. He also acknowledged that Bitcoin could potentially become superior to cash.
Data from Coin360 showed the flagship crypto-asset was trading above $11,700 with a market valuation above $216 billion and a daily trading volume of about $9.6 billion. This was as at the time this report was being drafted.
Why Bitcoin might be rising
What’s driving the most valuable crypto and its usage as an investment asset lately?
Well, many financial experts believe the sudden rise of crypto assets’ value might be due to the weakness in the US dollar.
The American dollar has fallen in recent months, on expectations that the Federal Reserve will keep interest rates near zero for the long term as a result of the financial disruption caused by the deadly COVID-19 pandemic.
Quick fact: BTC holds a maximum supply of about 21 million digital coins of which there are about 18.5 million in circulation, while over 4 million BTCs have already been lost forever. These show that its definite supply protects it asset against value dilution.
Recall that Nairametrics earlier gave valuable insights into why Bitcoin is now the most preferred asset to own among institutional investors.
Changpeng Zhao, the CEO of Binance, on his Twitter feed commented on the reasons companies are investing in cryptos. He said:
“Smart publicly listed company buys $250,000,000 worth of bitcoin, as a safe haven asset. Stimulus money flowing from Wall Street into bitcoin. Are you in front of or behind them?”
Smart publicly listed company buys $250,000,000 worth of #bitcoin, as a safe heaven asset.
Stimulus money flowing from Wall Street into #bitcoin.
Are you in front or behind them? https://t.co/1FYLZERjkS
— CZ Binance (@cz_binance) August 11, 2020
Cryptocurrency
Ethereum on rampage, surges to a 2-year high of $430
ETH breaking the strong resistance level of $450, in the nearest future.
The second most valuable crypto surged past its two-year high. Just a day after reaching a two-month low in address activity amid fears of soaring fees, ETH has defied short-term fundamental concerns and soared to a 2-year high of $430.
According to Santiment Research Company’s Twitter feed, Ethereum traders were also elated about sky-high social volume levels.
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🚀 Just a day after making a two-month low in address activity and fears of soaring fees, $ETH has defied the short-term fundamental concerns and soared to a 2-year high of $430! #Ethereum traders are rejoicing on sky-high social volume levels as well. 🎉 https://t.co/cRgCgaw4it pic.twitter.com/mndWglPl0T
— Santiment (@santimentfeed) August 13, 2020
What’s next?
The two-year high record band is now the new barrier to overcome as ETH sits above $400 per token. If the cryptocurrency manages to stay above $425, Nairametrics could soon see ETH breaking the strong resistance level of $450, in the nearest future.
But not everything is all smooth in the second most valuable crypto market. The growing popularity of Ethereum-based networks and the use of DeFi protocols are both a blessing and a curse.
READ: Bitcoin could potentially become superior to cash
The Ethereum network is presently close to reaching its technical limits, as DeFi and Tether are essentially responsible for as many transactions as the network can handle at the moment.
Quick fact: Ethereum is a cryptocurrency designed for decentralized applications and deployment of smart contracts, which are created and operated without fraud, interruption, control, or interference from a third party.
READ ALSO: Wallets holdings of 0.1 BTC reaches all time highWallets holdings of 0.1 BTC reaches all time high
Like with many other crypto assets, speculating with Ethereum can be highly profitable and has had a good history of giving its investors huge returns. However, there are also many other options to make income from cryptocurrency. These include Ethereum mining, Ethereum faucets, and Ethereum staking.
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