The use of Bitcoin (BTC) for peer to peer lending in Nigeria is rising astronomically. Nigerians are increasing their use of BTC, but what seems astonishing is the volume that Nigerians transacted with BTCs in Q2 2020, compared to other African counterparts.
According to statistics obtained from usefultulips, a BTC analytic data provider, Nigeria led the pack of BTC transactions, with more than $34.4 million, while the closest rival, South Africa, had a transactional value of just $15.2 million during the last 90 days. This is a clear indication that Nigerians are beginning to see crypto Assets as an investment portfolio.
Furthermore, the bandwagon effect of cryptocurrency has also rubbed off on other African countries. In the last 90 days peer to peer Bitcoin transactional trades experienced astronomical rise on the African continent; Nigeria ($34.4m), South Africa ($15.2m), Kenya ($7.8m), Ghana ($640,000), Tanzania ($600,000).
What You Need To Know About Peer to Peer BTC Exchange
P2P technology plays an important role in the blockchain and cryptocurrency industries. When Bitcoin was created, Satoshi Nakamoto defined it as a “Peer-to-Peer Electronic Cash System”. This means that users can send and receive Bitcoins without relying on a central server or intermediaries. In other terms, Bitcoin is a decentralized and distributed form of money, maintained by a big network of computer nodes.
So, in BTC’s case, peer to peer is the exchange of BTC between parties without the involvement of a central authority. This means that peer to peer use of BTC takes a decentralized approach in the exchange of Bitcoins between individuals and groups.
It shows that BTC’s long-running narrative as the “digital gold” for hedging against global economic turmoil is gaining the trust of Nigerians for payments and transfers.
The COVID-19 pandemic has definitely changed the way Nigerians view the whole financial system. Data obtained from Google trends shows Nigeria is leading the pack around the world in Bitcoin searches. This automatically attests to the fact that Nigerians truly love their Bitcoins.
In addition, the decentralized framework of P2P systems makes them highly resistant to cyber-attacks and also more scalable. The more users join it, the more resilient and scalable it gets. Bigger P2P networks achieve high levels of security. This is because there is no single point of failure (inherent to the more traditional models).