Bitcoin demand in Nigeria continues to rise, with the price breaking through $1,250

While the dollar and yuan markets are showing signs of decline, Bitcoin prices continue to hit new highs in many parts of the world. Recently, the price of Bitcoin in Nigeria has exceeded 1250美元. This price is obviously very interesting compared to other regions. This phenomenon proves that Nigerians are willing to pay extra to buy cryptocurrencies. Maybe not in the way people imagine, but Bitcoin is bound to have an impact on this developing country.

Nigerians see Bitcoin as a safe haven

Similar to the situation in India, Nigerians do not trust fiat currencies. In addition, the threat of domestic capital controls is forcing consumers, traders and investors to look for new opportunities. It is difficult to avoid the possible financial crisis in the future, and the opportunities in front of them are very slim.

All of these factors contributed to the crazy rise in Bitcoin prices in the country. The price of the coin suddenly reached $1,250, proving that Nigerian exchanges cannot guarantee the liquidity of cryptocurrencies, so users have to pay a premium. However, most people don’t mind spending a little more.

The phenomenon of premium is common in both Bitcoin exchanges and P2P trading platforms. Chinese traders often have to pay prices higher than the market value. Indian consumers who have recently flocked to Bitcoin also have to pay extra fees to obtain Bitcoin. From the current situation, Nigeria's currency price ranks first.

At the same time, you should still look at the premium issue dialectically. Just because the price of Bitcoin in Nigeria has risen, you can't assume that the global market will immediately follow suit. On the contrary, many traders will take advantage of this arbitrage opportunity to buy more Bitcoin, and everyone who has the conditions should do so.

The crazy rise in the price of the Nigerian currency is also attributed to liquidity problems in the market. Exchanges only trade limited amounts of Bitcoin when the market is good, which means that this phenomenon is only temporary. At present, the price of the currency has returned to normal levels, but there is no guarantee that similar phenomena will happen again.

Bitcoin is in high demand around the world, but few people view it as a traditional currency. For most people, buying cryptocurrencies is a form of investment, and compared to precious metals, cryptocurrencies are easier to buy and offer far better returns than stocks or bonds. However, once demand for Bitcoin rises, the supply on exchanges will inevitably fall, and the price of the currency will continue to rise.