Bitcoin changes hands above USD $38,000 in the Nigerian markets, while in the rest of the world, its price is around USD $23,000.
The Bitcoin price has risen well above the $20,000 mark in recent weeks. But in Nigeria, this price is a bargain, as the largest cryptocurrency is traded there at a price as high as $60,000.
The top cryptocurrency is changing hands at exorbitant prices on some of the Nigerian exchanges. For example, on the NairaEX trading platform, one Bitcoin sells for 17.4 million Naira, or about USD $37,800. The difference is almost 65%, compared to the price of Bitcoin in other markets, which is around USD $23,000.
However, on some exchanges, the premium appears to be even higher. The exchange rate between traders on the LocalBitcoins platform has even risen above 100% as some users have offers to sell as much as $62,000 per coin, as noted by news outlet AMBCrypto.
Where Is the Bitcoin Rate in Nigeria?
The price of Bitcoin has a certain market price. This market price reflects how Bitcoin is valued against certain FIAT currencies, such as US dollars and euros. However, this does not mean that Bitcoin can be obtained at this price in all regions of the world.
If the demand for Bitcoin in a certain region increases significantly, then the price in this region could rise considerably. Such is the case of the cryptocurrency exchanges of the most populous country on the African continent. There, the price of Bitcoin is trading at $40,000, with peaks as high as $60,000.
The reason for Bitcoin’s massive “value gains” is demand from Nigerians, who do not want to accept the country’s new central digital currency, the eNaira. Due to the lack of interest of the population, the government has restricted cash withdrawals.
Old notes will be exchanged for eNaira before February 10. This is causing a bit of a panic in the country, and people are looking for new ways to keep their money’s value. Search queries for terms like “buy Bitcoin” on Google have skyrocketed in recent days. An average price of $38,000 has been established for peer-to-peer platforms.
What Does this Development Mean for the Course of Bitcoin In Europe?
It’s worth considering that the Bitcoin rate is always just an exchange rate against a FIAT currency. If a FIAT currency loses value, then the equivalent value of Bitcoin increases as well. This was the most recent case when the euro reached parity with the US dollar. In this case, the exchange rates of the dollar and the euro were the same.
If the euro loses value in the future, the price will rise more in Europe than in the United States. Europeans use the US dollar in the prices as it is the reserve currency for the entire FIAT world. ECB rate hikes were inevitable after the US rate hikes.
Ultimately, it is paramount to realize that Bitcoin has value in its own right, and it can act as a store of value against a possible fall of a FIAT currency. A situation like the one in Nigeria could be closer in Europe than one may think.
By Audy Castaneda
