In Nigeria, each bitcoin costs more than $ 98,000, and its price continues to escalate uncontrollably. Although this might be the dream of many bitcoiners, the reality is that it has become a nightmare for Nigerian traders. And it is that the rally that the cryptocurrency is having in that nation is the product of nothing more and nothing less than a measure imposed by the government that prohibits the commercialization of digital assets.
To understand the dimensions Of this phenomenon, it is illustrative to know that the price of bitcoin in Nigeria is 56% more expensive than the average value of the cryptocurrency globally . While bitcoin has just narrowly passed $ 57,000 per unit in most countries globally, in Nigeria the price continues to climb toward $ 100,000. That is, a difference of more than $ 40,000 per unit purchased.
The data of this monetary disaster is being recorded by the BitcoinPriceMap application, which monitors the asset price rises in different parts of the world. balloon. Likewise, members of the Nigerian crypto community have also confirmed the unusual behavior in the price of bitcoin, explaining that it is the consequences of the recent measures imposed by the national government.
Chiagozie Iwu, CEO of the Nigerian exchange Naijacrypto, stated in an interview that currently the country’s exchange houses They have different prices for bitcoin due to the increase in the acquisition costs of the asset. Iwu explained that, now that banks are rejecting deposits related to cryptocurrencies and closing bank accounts, there is not enough liquidity in the exchanges.
Before the cryptocurrency trading ban imposed by the Central Bank of Nigeria, exchanges kept cash (nairas) in banks and had a constant deposit flow. “Before there was a unified source of liquidity,” says Chiagozie Iwu, and therefore there was always cash to exchange for bitcoins and the price was stable.
However, after the government decreed that the buying and selling bitcoins was prohibited throughout the territory , deposits in exchanges such as Naijacrypto decreased by 80% . Also, it is now much more expensive for companies to obtain cash and carry out transactions, so the price of the asset multiplies.
Could the Nigerian government change its mind on Bitcoin?
Chiagoze Iwu highlighted that, little by little, the bitcoin market in Nigeria has been recovering its usual movement. However, trading remains low compared to a few months ago, decreasing the amount of deposits received by national exchanges by up to 20% .
Due to this new reality, there is a chance that the price of bitcoin in Nigeria will continue to be much higher than in other parts of the world. Cryptocurrency has become even scarcer in the territory, and it was the source of income for both entrepreneurs and social activists. And it is that the members of the movement END SARS, against police violence in Nigeria, have used bitcoin to finance their operations in the country, this being the main reason for the ban on cryptocurrency.
The CEO of Naijacrypto believes that there is a possibility that in the future the Nigerian government will revoke the decree against cryptocurrencies and allow trading again . However, this option is hard to believe if we take into account that the state narrative is that bitcoin is a danger to the economy. Recently in CriptoNoticias we reported that Nigerian senator, Mohammed Musa, accused bitcoin of having turned the national currency into an “almost useless” asset. A speech that reinforces the idea that it is better for bitcoin not to circulate within the country.