New York Times admits Bitcoin dethrones dollar in Nigeria

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Last Updated on 9 September 2020 by CryptoTips.eu

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Africa is embracing cryptocurrency apparently, with South Africa, Kenya and Nigeria as the leading users. The weakness of the dollar and a fall in oil prices coupled with growing trade with China has resulted in a spike of Bitcoin usage. Now here’s the kicker, in Nigeria especially Bitcoin is not being used for speculation, but as an actual means of payment.

For Nigerians trading with Chinese suppliers, this withdraws the difficulty of both parties having to exchange their proper currency into dollars. Payment is done in crypto and exchanges have noted an explosion in trade in recent months.

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Because of sliding oil prices earlier this year, the trust that Nigerians usually have in the US dollar has been replaced by a growing acceptance of Bitcoin, which has seen a spike in usage, up 40% versus last year. A surge so great that even the largest newspaper in the world, the New York Times, posted the story yesterday, and entitled it: How Bitcoin Met the Real World in Africa.

Chainalysis data showed that in June of this year, cryptocurrency transfers to and from Africa of under $10,000, the amounts used by individuals and small business owners, rose to an incredible $315 million, or up 55%.

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Vitalik promotes Reuters story

Vitalik Buterin, CEO of Ethereum, proudly retweeted the Reuters story which highlighted the easiness and actual use crypto has meant for a 30-year-old smartphone seller in Nigeria called Abolaji Odunjo.

The latter stated:

Bitcoin helped to protect my business against the currency devaluation, and enabled me to grow at the same time.

You don’t have to pay charges, you don’t have to buy dollars.

Growth in Nigeria is key for Bitcoin in Africa, as it represents the enormous continent’s biggest economy and has a population of a whopping 195 million.

While western democracies see Bitcoin mainly as an investment vehicle, it has found a real use in Africa. Mass adoption in at least one continent is upon us apparently.