Recent reports claiming that Nigerian residents are paying nearly 100% more than the global price of Bitcoin have been dismissed as “totally false” by local blockchain and crypto enthusiasts. They argue that the reports are based on misleading tweets and need an understanding of the crypto landscape in the country.
“This is false; we’re trading at normal price,” said Benjamin Eseoghene, CEO of local crypto exchange Roqqu, “though there’s some speculation around the crash of dollar rate after the general elections, maybe by then, there can be some premium, but likely nowhere near 100%.”
The tweets in question were sparked by a screenshot showing that one Bitcoin was being bought on the peer-to-peer platform Paxful for $47,924. The user also claimed that the recent cash withdrawal restrictions imposed by the central bank had led to a surge in demand for Bitcoin.
However, some Nigerian users have criticized these claims, who insist that the screenshot is misleading and that no one is paying over $47,000 for Bitcoin. Nathaniel Luz, an author and crypto advocate, also stated that the individuals using the BTC values on Paxful to make these claims need to understand how the platform is used in Nigeria.
“This is not even the price on Paxful. The PM here is ‘Game Items, ‘ not fiat money. Game items mean I want to exchange a FIFA 23 voucher for BTC. You get? It’s a false representation,” Luz explained.
In conclusion, despite price discrepancies that may exist, Nigerians are not paying a premium of 100% on top of the global price of Bitcoin. These claims stem from a misunderstanding of the country’s crypto market dynamics and should be disregarded.
Nigeria’s economy has faced several challenges in recent years, including inflation, the naira devaluation, and a foreign exchange shortage. These factors have made it difficult for residents to access basic goods and services and have led many to seek alternative sources of value and wealth.
One such alternative is Bitcoin, which has gained increasing popularity in Nigeria as a means of storing value and transferring money across borders. The recent cash withdrawal restrictions imposed by the Nigerian central bank have also driven up demand for Bitcoin, as many residents have sought to swap their naira for a more stable currency.