What is Bitcoin
Bitcoin is a digital currency developed in 2009 by a mystery inventor with the moniker ‘Satoshi Nakamoto’. Bitcoin is extremely secure, using dual-sided cryptography for each transaction, and there is also only a finite amount ever in existence. Bitcoins are held in digital wallets, although if you lose it, it’s lost forever.
Bitcoin in Nigeria
Nigerians are trading about $4.7 million in Bitcoin a week, up from about $300,000 per week a year ago. That’s No. 23 globally, according to researcher CryptoCompare—far below the more than $1 billion traded daily in U.S. dollars or Japanese yen, but comparable to the volume of activity in Chinese yuan or Indian rupees.
Given its increased popularity and high volatility the CBN put out a circular last year warning Nigerians against crypto-currencies and stated that it is not legal tender in Nigeria. So that means you cannot yet use Bitcoin to buy Suya or pure water from street vendors.
There are are number of vendors that allow Nigerians to trade bitcoin in naira. you can find them in our Nigerian Bitcoin trading list.
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.
Bitcoin’s price during the last 12 months, a period of time that saw the price of bitcoin climb from below $1,000 to nearly $20,000 and back down moderately to $11,000 in January 2018. One factor that could explain bitcoin’s growth in popularity is the lack of external regulation and control from big banks.