Nigerians undoubtedly have shown interest in bitcoins for the past three years. Nigeria is Africa most populated country with over 180 million citizens.
Research have shown 30% of Nigerians have used either Bitcoin or altcoins while 50% have knowledge about bitcoins and altcoins.
Nigerians interest in bitcoins and altcoins is expected to progress as the majority of her citizens are poor. Study shows 90% of Nigerians using bitcoin are only buying and reselling seizing the market arbitrages to make profits.
Vast majority of them have turned out to become bitcoin traders or merchants using several platforms to transact. Some use social media platforms like whatsapp, facebook groups, telegram groups and others to do transactions.
This method have led to many scammed of their hard earned money as this methods are not fully trusted. Nigeria is also a country with majority of citizens being youths.
During our interaction with a bitcoin trader, Samuel Mawa, he said he has been in Bitcoin trade for the past two years now. He went further to say most Nigerian users only buy to resell in view to make profit.
When asked how he make profit buying and reselling bitcoin, he said he uses naira (Nigeria national currency) to buy in Nigeria and resell the bitcoins outside Nigeria. He get paid in his USD dormiciary bank accounts, withdraw and exchange the dollar and buy back again.
This is what he and majority of bitcoin traders do with bitcoin in Nigeria. They seize the market volatility coupled with exchange rate to make profits. When asked the foreign exchange platforms he uses to trade offshore, he mentioned exchanges such as Kraken, Exmo and BTCC.
Bitcoin adoption in Nigeria could be linked to high rate of poverty prevailing in the country. Also, a ponzi scheme named MMM brought attention of bitcoin to some Nigerians. MMM was a ponzi scheme that lured Nigerians with 30% PROFIT.