As the Nigerian Naira hits an all-time low against the dollar, local investors are increasingly turning to Bitcoin as a refuge against devaluation. The fall in foreign currency liquidity has exacerbated the economic situation, pushing Bitcoin towards its all-time high in Nigeria.
Bitcoin explodes in Nigeria!
The devaluation of the Naira was marked by a series of economic and political factors. Nigeria's dependence on imports, combined with a decline in oil revenues, has led to increased pressure on the local currency. As a result, the Naira hit an all-time low of NGN 1,670.65 per dollar, following a 72% fall in dollar liquidity, falling to $81 million.
Faced with this situation, Bitcoin has become an attractive alternative for investors seeking to protect their wealth. At the beginning of November 2024, Bitcoin reached a high of 120,123,379.38 NGNfar surpassing its previous record of NGN 26 million set in 2021. This surge reflects not only the current economic crisis, but also a broader transformation of investment habits in the country.
Regulatory challenges
The crypto market in Nigeria has seen rapid growth in recent years. Local exchanges have reported a significant increase in Bitcoin trading volumes, reflecting growing investor demand. This trend is also supported by a young and tech-savvy population, ready to adopt innovative financial solutions.
However, Bitcoin's rise is not without its challenges. Nigerian regulators have expressed concerns about the use of cryptocurrencies for illicit activities and the lack of protection for investors. Despite this, demand for BTC continues to grow, fueled by the search for financial stability in an uncertain economic environment.
In short, the Naira continues to lose its value and Bitcoin is emerging as a fallback solution for Nigerian investors. BTC, with its resilience and growing popularity, could well become a pillar of the Nigerian digital economy and soon a global store of value.
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