Nigeria's oil crisis: Bitcoin is gaining popularity in the country

Factories in Nigeria are no longer importing parts due to a shortage of dollars. This is unfortunate for most people, as the dollar dominates the world economy and restrictions on this currency will limit business development.

Many are eager to see how Bitcoin can be used to improve their situation in the coming years. In Nigeria, interest in Bitcoin is growing day by day as the oil crisis is bringing the emerging market to market. Trillions of dollars of untapped crude oil are not all attractive at low prices, forcing consumers and businesses to look for alternative solutions.

Nigeria’s Oil Crisis Is Positive for Bitcoin

Nigeria was once known as Africa’s emerging market, but things are looking pretty grim right now. Declining oil revenues have caused U.S. dollars to become very scarce in the country. In addition, the Nigerian government is hoarding foreign exchange reserves to ensure they always have some reserves, hoping to avoid a financial crisis.

As a result of this turmoil, Nigerian consumers and businesses have felt the brunt of this financial storm. In fact, the country’s economy has dropped by more than 50% in just one year, which is not a good sign. Remember that in a country with a population of over 187 million, financial issues are the biggest thing that the economy needs to address.

This transformation came after Nigeria became one of the world’s 20 largest economies. The economy grew at an average annual rate of 7%, which had a positive impact on the region’s economic development. However, since the beginning of 2015, the economy has started to decline and the situation does not seem to improve in the long run.

Factories in Nigeria are no longer importing parts due to a shortage of dollars. This is unfortunate for most people, the dollar dominates the world economy, and restrictions on this currency will limit business development. A new global currency solution needs to be proposed, and although the Nigerian government is considering a bond denominated in RMB, another option is not hard to find.

It is no surprise to find that Bitcoin is becoming increasingly popular in the country. The digital currency ecosystem transcends traditional financial and governmental boundaries and can be exchanged for any fiat currency in the world. Using Bitcoin eliminates the need to rely on traditional financial models to enable consumers and businesses to obtain US dollars in the region.

In addition, the country also has several Bitcoin exchanges, which facilitate users to buy or sell digital currencies. NairaEx is a recent launch, and Ice3X has been active in Nigeria for a long time. In addition, there is a thriving localbitcoins (a market where local bitcoins are traded for cash or selected online payment methods) market, which greatly enhances the interest of Bitcoin in the region.