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Cryptocurrency

Nigerian Bitcoin P2P surges by 15% since CBN Crypto ban

Africa’s largest economy, Nigeria, posted Bitcoin monthly P2P volumes of about $31 million

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Africa’s largest economy, in spite of the recent crypto ban reminder issued by Nigeria’s Apex bank, has posted a surge in monthly P2P volumes to about $31 million on two major P2P exchanges that include Paxful and Local Bitcoins.

According to a new study seen by Nairametrics, Africa’s biggest crypto market has seen about a 15% surge of activity in peer-to-peer transactions since the Central Bank of Nigeria issued a circular reminding financial institutions in Nigeria about the prohibition in crypto-related transactions.

READ: Nigerian banks allegedly close accounts dealing with Crypto

As bitcoin’s usage has been rising steadily in emerged markets, recent data suggest Nigerians are not giving up on the world’s most popular cryptocurrency, so it becomes unsurprising that transactional volumes printing out from Nigeria combine other African nations in relation to bitcoin P2P.

Data seen from Usefultulips, a BTC analytic data provider, showed Africa’s leading oil producer-led Africa’s peer to peer transactions in the last 30 days, as it posted monthly P2P volumes of about $31 million, followed by the Kenyans and Ghana each posting about $12.1 million and $8.4 million respectively.

 

What you must know: In Bitcoin’s case, P2P 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.

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However, the effect of the CBN crypto ban is already breeding bad actors currently taking advantage of the high thirst for Bitcoin. Luno, a leading African-based Crypto exchange, in an email sent to Nairametrics, shed more light on the cost bitcoin buyers in Nigeria must bear.

READ: Ethereum becoming harder to buy on Crypto exchanges, trading at $1,781

“Pushing people underground also makes it easier for scammers to exploit Nigerians, and we are already seeing Bitcoin trade at huge premiums in the country as a result of the ban.

“Other companies have made the choice to find workarounds that are less visible for regulators – for example, Peer-2-Peer (P2P) trading. Our view is that P2P trading would go against the spirit of the CBN’s directive.

“We believe that the focus should instead be on demonstrating to the CBN that exchanges such as Luno have the necessary controls in place to address the concerns it has in relation to cryptocurrencies.”

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Bottom Line: A significant number of Nigerians are hell-bent on leveraging on Bitcoin to sustain and drive their earnings amid rising inflation and stringent access to FX liquidity in Africa’s biggest economy as it offers most of them the easiest and cheapest means of moving capital in relation to other traditional means of payments.

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

    Bitcoin ETF in North America has reached $1 billion in assets

    The first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch.

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    According to a statement from its issuer, the first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch. What exchange-traded funds did to the conventional investing market for decades could happen to cryptocurrency players in a fraction of the time.

    Investors are clamoring for crypto exposure, particularly in an exchange-traded fund wrapper, and the product from Toronto-based Purpose Investments, ticker BTCC, has seen a lot of interest. Although there are many crypto funds in Europe that work similarly to ETFs, this is the first ETF anywhere.

    More than $165 million worth of shares were traded on the fund’s first trading day in February, a big start for a fund in the much smaller Canadian ETF market.

    Its rapid cash accumulation reflects the high demand for Bitcoin products in the United States, as issuers compete for approval of the first Bitcoin ETF in the nation. Despite regulator resistance to accept the tactics, at least eight companies, including VanEck Associates Corp. and WisdomTree Investments, now have live applications with the Securities and Exchange Commission.

    On Tuesday, Bitcoin surged to an all-time high of about $63,246 ahead of Coinbase Global Inc.’s upcoming IPO later this week.

    There is an increasing expectation that a bitcoin ETF will be available in the United States in the not-too-distant future. Gary Gensler, the nominated chairman of the Securities and Exchange Commission, has taught cryptocurrency classes. The bitcoin market has exploded in popularity in recent months, attracting the attention of major financial institutions. Bitcoin ETFs are once again being sought by VanEck, Fidelity, and others.

    One advantage of ETFs is that shares can be readily created and redeemed to arbitrage away any discount or premium, which could greatly broaden their appeal. ETFs are also cheaper, which will put pressure on fees across the bitcoin ecosystem. Hence market sentiment may push the ETF higher.

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    Cryptocurrency

    Bitcoin is on fire, breaks above all-time high

    The flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion.

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    Bitcoin on high demand, hits 2-year high, trading $17,000

    Bitcoin prices ascended to a record high on Tuesday, hitting another milestone at above $62,000, a move that many reaffirm to be a bullish trend in the cryptoverse and one that can make other digital assets surge.

    At the time of writing this report, the flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion. Bitcoin is up 2.99% for the day. The world’s most popular crypto now has a market value of about $1.17 trillion.

    Adding credence to the strong bullish run in play is data retrieved from Glassnode pointing to the fact that holders of the flagship crypto are selling less, as Bitcoin deposits on exchanges hit a 30-day low.

    BTC Number of Exchange Deposits (7d MA) just reached a 1-month low of 2,837.702.

    READ: Why Bitcoin might likely hit $100,000 soon

    READ: Bitcoin produces 4 billionaires worth at least $3 billion each

    More details later…

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