A tangible percentage of cryptocurrency enthusiasts today joined the bandwagon from the 2017 bullrun. Sending goosebumps across the skins of every investor; the 2017 explosion not only attracted the investors, it also attracted forex traders and the common Nigerians. The bliss lasted for a reasonable amount of time, at least long enough to allow the doubters make up their minds and also the researchers complete their askance at cryptocurrency–notably bitcoin. While many joined the trail, many withheld the zeal, but one thing for sure is, this marked the successful penetration of cryptocurrency into the Nigerian asset market.
While many hoped the rave continued while holding the cryptocurrencies they purchased in their bags; many others surfed the oceans of blockchain technology and cryptocurrency, discovering its potential and most importantly, other ways of benefiting from this concept. Diversifying the scope of participation in cryptocurrency, the Nigerian cryptocurrency market solidified and the year slowly ran into 2018 as many others kept joining and assuming vital positions in the cryptocurrency market; this includes amongst others, buyers, miners, developers, influencers, project ambassadors, mentors and promoters.
2018 couldn't hold on to the bubble as cryptocurrency prices crashed to reasonable lows and following the Bitcoin cash SV and Bitcoin cash ABC hash wars, more tumbles came with most cryptocurrency prices slumping to pitiable states–at least when compared to their prices during the bullrun. This Nigerian cryptocurrency market wasn't left out as its capitalization shed tangible millions of dollars while many lost interest, it was an 'accumulation' time for others as many people joined the cryptocurrency ecosystem, this lasted till 2019; market trends from 2019 is the major focus of this article…
The cryptocurrency vision and Africa(Main reference to Nigeria)
Satoshi Nakamoto envisioned a portable means of value exchange while crushing censorship and political corruption of national finance and wealth creation plans. Africa wasn't left out of this vision, particularly Nigeria which have suffered from lack of capable leaders, national fund embezzlement and currency inflation, the blockchain movement and its advent into the Nigerian asset market was really a much needed development.
The Nigerian perception of cryptocurrency
Finding its way into Nigeria, the concept of cryptocurrency have since struggled to actually achieve its original vision, instead of the slogan ‘blockchain not bitcoin’, the reverse is the actual case in Nigeria; ‘bitcoin not blockchain’. A greater percentage of members of the Nigerian cryptocurrency ecosystem are only after the ‘get rich quick’ potentials of cryptocurrency, embracing the actual the actual use of blockchain technology have not really been a success in Nigeria. However, this seems to be a global dilemma, while this have for sure enhanced trading activities and made the Nigerian cryptocurrency market a vibrant one, the main goal of this technology have struggled to find its way into the minds of Nigerians.
National involvement in cryptocurrency and blockchain technology.
Despite the 2017 wave and the 2018 slump which also made a huge wave, the cryptocurrency ecosystem in Nigeria is dominated by the Nigerian citizens who hope to earn a living from cryptocurrency and to explore the technology. The Nigerian government seemed to be a bit indifferent to cryptocurrency until fraudulent activities facilitated with cryptocurrency gained national attention in the second quarter of 2019. This has been the most notable involvement of the Nigerian government in cryptocurrency in 2019 and before. Despite the lack of interest from the Nigerian government, Nigerians in cryptocurrency have intensified their devotion towards learning, trading, using and exploring other potentials of cryptocurrency.
OUTLOOK OF THE NIGERIAN CRYPTOCURRENCY MARKET.
The traders, the miners, the numerous cryptocurrency ambassadors and the developers, the fraudsters utilizing cryptocurrency and the economic crime commission agency; these figures have helped shape the Nigerian cryptocurrency ecosystem. The Nigerian cryptocurrency market is a very active one, due to the high population and the growing interest in technology, individual wealth creation and the poor governance, interest in cryptocurrency have exploded and have formed a major force in the Nigerian asset market.
Despite starting off the year with a low price of cryptocurrency, the Nigerian cryptocurrency market have since this year maintained an uptrend in interest as investors keep joining and taking up several roles in the market. However, the influence of the Nigerian cryptocurrency market on the general dynamics of cryptocurrency have been minimal as they practically follow dynamics created by other countries which are more active than them in cryptocurrency.
From the first quarter of 2019,links to Chinese cryptocurrency traders have grown reasonably with most Nigerian cryptocurrency traders selling their cryptocurrencies to Chinese buyers. Due to this, the Chinese cryptocurrency market dynamics have a great influence on the Nigerian cryptocurrency market, this influence is expected to grow over the rest of the years and subsequent years. Despite lack interest of the Nigerian government in cryptocurrency and the growing stigma for cryptocurrency in Nigeria due to its utilization in financial crimes during the year, Nigerian cryptocurrency market have grown to become the biggest cryptocurrency ecosystem in Africa and South Africa and Ghana trailing behind, with Binance exchange extending majority of their philanthropic activities to Uganda and their government supporting cryptocurrency, the Ugandan cryptocurrency ecosystem have also blossomed during the year and could be placed right behind Ghana.
Exchange of cryptocurrency to fiat which posed a huge issue to Nigerian traders from year 2017 to 2018 have been simplified to a great extent in 2019 as more traders have entered the system to offer fiat solutions to cryptocurrency holders and miners, this breakthrough is also influenced by the Chinese investors who offer great liquidity to the cryptocurrency market.
Major trading activity in the Nigerian cryptocurrency market is holding and conversion to fiat, lesser attention is paid to trading cryptocurrencies on exchanges, watching the charts and utilizing the periodic hike in price. Interest in real trading of bitcoin and its futures have grown in 2019 and is expected to grow even more as the ‘HODLing’ game have not really paid off so well this year.
Summarily, factors such as advancement in technology, adverse economic conditions and information system have shaped the trend in cryptocurrency market in Nigeria this year with the first having positive effect while the rest have harmed dedicated involvement in cryptocurrency as most people sell off their cryptocurrencies as soon as they earn it(probably from gift or mining) and cryptocurrency adoption in the country have been hindered due to its association with fraudulent transactions.
Prominent blockchain projects in Nigeria and why they gained the attention of the Nigerian cryptocurrency market .
With over two thousand cryptocurrencies contributing to the global market capitalization of cryptocurrency and many of these projects trying to add utility to the blockchain technology and propel real world adoption, interest in some of these projects have grown while some of them have become obsolete.
For the Nigerian cryptocurrency market, many of the prominent blockchain projects doesn't really matter except as a mere means of exchange as traders who offer liquidity in the market prefer these popular cryptocurrencies. Apart from this, the majority of top cryptocurrencies are not well known in Nigeria. Notable cryptocurrencies which have grown in popularity and interest to the Nigerian cryptocurrency market in 2019 include…
Bitcoin and etherum:
Being the first cryptocurrency and the major means of exchange in the global cryptocurrency market, it's no doubt that bitcoin is the most popular cryptocurrency in the Nigerian cryptocurrency market and interest in it have grown so well in 2019.
The smart contract blockchain –Etherum, have also become more popular as many Nigerian cryptocurrency developers have attempted to create their own token on the platform and drive real life adoption in the country. While many of these tokens have failed to achieve their goals, the popularity they brought to etherum have remained, and also being the second choice to cryptocurrency traders due to lower fees relative to bitcoin, etherum is the second most popular altcoin in the Nigerian cryptocurrency market and have grown since this year.
Steemit(steem and steem backed dollar)
Major problems which have plagued the Nigerian cryptocurrency market is lack of capital and fear of losing out on investments. By creating a platform where on can earn cryptocurrencies by blogging, Steemit Inc. gained souch love from the Nigerian cryptocurrency market as well as Africa as a whole.
Bursting into the Nigerian market in 2017 and growing notably throughout 2018, it's growth have also continued in 2019 with other similar projects such as whaleshares (WLS), Smoke network (Smoke) and Weku blockchain (Weku) also joining the trail as cryptocurrency-earning blogging platforms.
Privacy coins Everyone loves their privacy, hence, privacy coins have done well in the global cryptocurrency market as well as the Nigerian cryptocurrency market too. Beam is a notable project in Nigeria while dash have also gained some popularity; PIVX is prominent in South Africa. But beam have grown more than most other privacy coins in the Nigerian cryptocurrency market in 2019.
CONCLUSION GETTING INVOLVED IN THE NIGERIAN CRYPTOCURRENCY MARKET.
Being the largest cryptocurrency market in Africa and recognized globally, the Nigerian cryptocurrency market which have also done so well in 2019 is a huge attraction for foreign investors and blockchain projects hoping to penetrate the African market, projects such as Adios Kuneen have geared most of their developmental efforts towards Africa, Binance have also launched the Nigerian Naira (NGN) on their platform and have done notable philanthropy duties in Uganda. Getting involved in the Nigerian cryptocurrency market requires core interest in blockchain technology and real life adoption, schooling the Nigerian investors to understand the real use of blockchain will drive real interest and participation. Many blockchain conferences have been conducted in the country, however these have only increased the popularity of cryptocurrency in the country but the real use of the blockchain haven't done so well. As a trader, providing liquidity to the market and educating members of the Nigerian cryptocurrency community on real trading of cryptocurrencies, it's futures and derivatives will surely bring more success.
How has cryptocurrency fared in your country? Join the discussion!