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Cryptocurrency

Bitcoin on rampage, now worth over N10 million

Bitcoin smashed higher than $25,000 yesterday night for the first time, and set a new all-time high of $26,368.16 ( N10,283, 520).

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Bitcoin on rampage, now worth over N10 million

The world’s most popular crypto, Bitcoin, is having a bullish run not seen in recent times, particularly at the near end of 2020.

  • The most popular cryptocurrency smashed higher than $25,000 yesterday night for the first time, and set a new all-time high of $26,368.16 (N10,283,520) a few hours ago, before pulling back to $26,246.72, up 7.39% on the day.
  • Year-to-date the flagship crypto has gained more than 250%.

READ: Bitcoin posts an all-time high amid high demand

What this means

Institutional investors are perceived to be driving Bitcoin’s bullish record-setting run. Amongst them; Anthony Scaramucci’s SkybridgeCapital ($25 million in December); Mass Mutual ($100 million in December); and Guggenheim (up to 10% of its $5 billion macro funds).

READ: Bitcoin’s market value can reach $600 billion – JP Morgan Chase

  • Bitcoin is fired up on all cylinders, smashing its past record highs at the speed of light, and it seems the momentum trade is strengthening as mass media outlets embrace crypto coverage, on the bias that the flagship crypto rallied to an all-time high today, as it broke above the $26,000 level.

Also, the flagship crypto is on its record high amid strong purchases seen in accredited investors gaining more exposure to Bitcoin through the world’s biggest crypto hedge fund, Grayscale, and the CME Bitcoin futures market.

READ: Bitcoin hits a new milestone on Christmas day

Still, in the short term global investors, crypto experts anticipate that Bitcoin’s trajectory remains optimistic.

Meanwhile, it seems a significant amount of Bitcoin owners are keeping the world’s most popular crypto for wealth preservation rather than as a utility tool, as data retrieved from Glassnode, revealed Bitcoin Percent Supply Last Active 1+ Years just reached a 7-month low of 59.601%. This means,

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  • Bitcoin is becoming scarce. This is partly why the price keeps increasing.
  • The previous 7-month low of 59.603% was observed on 24 December 2020.

Metric description: The percent of circulating supply that has not moved in at least 1 year

READ: A whopping $2 billion worth of Bitcoins moved by a powerful entity

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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Cryptocurrency

Nigerians increasingly using Bitcoin since CBN’s Crypto ban

A growing number of Nigerians are not giving up on the crypto that has outperformed any Nigerian-based financial asset.

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Nobody is going to ban Bitcoin - US Bank regulator

It’s been roughly three months since the Central bank restricted Nigeria’s financial institutions from dealing with anything crypto-related, yet recent data suggests its citizens have increasingly found other alternatives to access the world’s flagship crypto.

Data retrieved from Usefultulips (a Bitcoin analytic data provider) shows that the usage of Bitcoin’s peer to peer trading in Nigeria surged by 27% since the CBN directive took effect about 85 days ago, as Nigerians moved about $103 million worth of Bitcoins on just Paxful and LocalBitcoins channels alone.

Bitcoin recorded gains and its suitability in hedging against inflation, coupled with access to other crypto assets that offer more viable options, seem not to have weakened despite the recent N5/$ rebate scheme introduced by the Central Bank of Nigeria to encourage Nigerians in the diaspora to use official channels to remit their funds instead of doing so through Cryptocurrencies.

READ: Crypto market surges above $2 trillion, as Bitcoin stages a huge comeback above $60,500

The world’s most popular crypto has rallied by almost 500% since its latest bull run began at the start of Q4 2020, hitting record highs of almost $65,000 this month before pulling back to $55,000 at the time of drafting this report amid strong institutional purchases sighted in emerged markets.

Some market analysts argue that Nigeria’s apex bank’s hold on the country’s financial system has further complicated transactional processes in Africa’s largest economy because Bitcoin still relies heavily on fiat currencies despite being virtual, from pricing its value to how its ownership is being ascertained. In spite of this, the growing interest in Bitcoin has not weakened.

Adding credence to Nigeria’s grip on Bitcoin includes data collated from Google trends, printing that Africa’s largest crypto market, emerged as the first amongst other countries by a long-distance over its interest in Bitcoin with a perfect score of 100%.

READ: Nigerian banks allegedly close accounts dealing with Crypto

Nigeria’s relatively young educated population coupled with its growing internet adoption and smartphone penetration has facilitated Bitcoin to thrive exponentially amid rising inflation that has eroded the savings of many Nigerians.

The borderless feature of Bitcoin also makes payment effortless for Nigerians in addition to offering outrageously low transaction fees.

READ: Why Bitcoin could triple in value annually

To give context, many Nigerian banks charge 1–2.5%. For a $1 million offshore transfer, bank charges may go up to $10,000, but with the flagship crypto, transfer of such amount would not exceed $300, even at peak periods.

Stanbic 728 x 90

Consequently, a significant number of Nigerians already pay a premium for accessing the crypto market, as data from Binance, the world’s largest crypto exchange by volume, at the time of writing, posted a rate of N607 to 1 USDT with Nigerian banking channels close to the global crypto ecosystem.

Bottom line

A growing number of Nigerians are not giving up on the crypto that has outperformed any Nigerian-based financial asset. They are thus ready to pay a premium to hold on to Crypto irrespective of the Central Bank’s ban.

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Business News

Paypal’s Venmo now permits cryptocurrency trading

Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

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Venmo, a mobile payment service owned by PayPal has announced that it has started allowing users to buy, hold and sell cryptocurrencies on its app. Just like PayPal, Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, and users can carry out transactions with as little as $1 on the app

Founded in 2009, Venmo has over 70 million users and it is one of the most popular payment channels in the US. The payment platform processed around $159 billion in payments last year.

Since the app functions like a social network, adding cryptocurrency will offer a more user-friendly feel for people who love buying and selling crypto.

READ: 28 million merchants to be granted crypto usage on PayPal

As bigger companies show more interest in cryptocurrency, there will be wider adoption of virtual currencies in future. Venmo is the latest payment app that is offering support for cryptocurrency on its platform.

Paypal, the parent company of Venmo is one of the most active companies in the crypto space as it allows users to buy, sell and hold cryptocurrencies in their digital wallets. Paypal users can also spend their coins at millions of merchants globally.

Crypto on Venmo is enabled through PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.

What they are saying

Darrell Esch, Venmo’s Senior Vice President and general manager said “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”

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