Are Nigerians Really Buying Bitcoin For As High As $34,000?

Over the final couple of weeks, reviews have emerged that crypto customers in Nigeria have been shopping for bitcoin (BTC) for a fairly hefty premium. On the floor, it might appear that these reviews are correct, however they’re basically incorrect, and this report will deal with how.

Nigerians Are Not Buying Bitcoin For $34,000

The reviews which have emerged have claimed that Nigerians are presently shopping for bitcoin at a worth of $34,000. These reviews consider the truth that the digital asset is presently promoting for over 17 million Nigerian Naira on P2P platforms (which is the one method Nigerians can purchase and promote crypto, by the best way) however they then U.S.e the official central financial institution price of $1 to 459.89 Naira to reach on the $34,000 determine. 

Now, as beforehand talked about, this might sound proper on the floor however it isn’t, and that’s as a result of there are presently two totally different U.S. greenback charges within the nation. The central financial institution price and the black market charges differ extensively.

As of February 1, the black market rate for the U.S. dollar to Naira is around 750 which is what the broader inhabitants of the nation makes use of. If the worth of BTC is transformed utilizing the official central financial institution price, then it’s on the $34,000 determine. But since residents can actually not get {dollars} within the nation apart from official functions and worldwide faculty charges funds, and even then it may be a nightmare, the black market price is what residents of the nation go together with. 

Using this black market price, you’ll arrive on the similar determine as everybody else – the round $22,900 determine that the digital asset is buying and selling at. Besides, you promote your tokens on the similar greenback price you purchase them at, not on the CBN greenback price.

BTC worth recovers above $23,000 | Source: BTCUSD on TradingView.com

So are Nigerian residents paying a excessive premium to buy bitcoin? No. They are quite paying a excessive premium to buy the U.S. greenback. This premium on the U.S. greenback impacts the shopping for and promoting price of every part within the nation and bitcoin is not any exception.

As for the claims that the worth of bitcoin just lately rallied greater than 50% above the final market worth, they’re incorrect. Bitcoin has at all times traded within the nation on the worth of the black market greenback price, so this isn’t a brand new phenomenon in any method both.

The solely factor that the money withdrawal restrict may’ve triggered within the nation is the upper adoption of cryptocurrencies. There was no sudden 50% improve within the worth of bitcoin within the final couple of days.