One of the most reasons investors across the world seek to diversify ancient assets into crypto is to counter rising fiat inflation.
A new study has revealed staggering growth in crypto adoption across Nigeria, oil-fired by restricted access to cheap fiat-based monetary services in continent.
Crypto exchange KuCoin’s “Into the Cryptoverse Report” highlights that several Nigerian voters have started mistreatment cryptocurrencies as a viable various to store and transfer assets.
According to the report, 35% of the Nigerian population aged 18 to 60 — or 33.4 million individuals — have owned or listed cryptocurrencies throughout the last six months. Out of these individuals, nearly 17.36 million (or 52% of Nigerian crypto investors) have allocated over half of their assets to cryptocurrencies.
One of the main reasons why investors across the world obtain to diversify ancient assets into cryptocurrencies is to counter rising enactment inflation. for instance, a variety of united kingdom investors was surveyed last month, and also the majority considered tokens to be safer and safer than ancient investments like gold, oil, stocks and assets.
The KuCoin report any highlights peer-to-peer trading because the most popular method among Nigerian investors to convert fiat into crypto assets. Doubling down on the crypto adoption spree, roughly 23.38 million Nigerians, or seventieth of existing crypto investors, can increase their cryptocurrency investments over ensuing six months.
The value of the naira, the nation’s enactment currency, has fallen by over 209% within the past six years, that stands joined of the key drivers for native investors to eye deflationary assets like Bitcoin (BTC).
The report additionally shows that whereas a majority of Nigerian crypto investors began their hodling journey many years past, 26% began finance in cryptocurrencies simply six months back — because of the 2021 bull run, that saw BTC prices briefly cross the $69,000 mark.
In October 2021, Nigerian President Muhammadu Buhari introduced the country’s financial organisation digital currency, the eNaira. varied governments across the world will use CBDCs as a digitized enactment replacement, primarily geared toward reducing operational prices and dashing up cross-border payments.
The eNaira is considered the foremost developed CBDC, rating 95 out of 100 across each the retail and wholesale classes in PwC’s recently free “2022 world CBDC Index.”
( Arijit Sarkar, Cointelegraph, 2022 )