As prices of cryptocurrencies continue to nose dive, survey has revealed that many Nigerians have seized the opportunity to invest more in Bitcoin.
Nigeria’s payment landscape is changing, and the rise of cryptocurrencies is at the heart of it. Developed by a person (or group) called Satoshi Nakamoto in 2008, Bitcoin was the first cryptocurrency, created for the digital world, and is entirely decentralised. As a peer-to-peer payment structure secured with cryptography, cryptocurrencies are reinventing our financial system.
Building on the 2017 edition of our Luno Cryptocurrency Awareness Survey, we’ve delved even deeper in our research for 2018. Surveying over a thousand people, we found that although the prices of top cryptocurrencies, like Bitcoin, surged to unbelievable highs, general public awareness didn’t meet the expectations of most analysts.
Apart from showing a certain level of acceptance for cryptocurrencies, the survey results do indicate a positive future for cryptocurrencies in Nigeria. We expect to see growth in the industry during 2019, despite the significant price volatility we saw 2018.
Over 65% of respondents expressed familiarity with cryptocurrencies. From participants, 76% of men and 54% of women said they were aware of cryptocurrencies.
Also interesting to note is the number of people who do not currently own any cryptocurrency but indicated willingness to buy. 48.09% of the participants said that, while they do not presently own cryptocurrency, they were willing to buy in the future. Notably, female respondents edged this group at 51%. This willingness to buy, paired with the 38% of respondents who said they already own cryptocurrency, leads us to expect continued adoption.
This encourages us in our mission to upgrade the world to a better financial system by providing safe and convenient products for Nigerians to buy Bitcoin and Ethereum.
Bitcoin remains the king of cryptocurrencies in terms of awareness. Over 80% of those who own cryptocurrency claim to own Bitcoin, specifically. Ethereum, Bitcoin Cash, and Litecoin are a distant 2nd, 3rd and 4th at 30%, 23% and 22% respectively.
Why Nigerians buy cryptocurrency
An overwhelming 76% majority buy cryptocurrency as an investment. Those who use cryptocurrencies for payment or remittance (sitting at 30%) came in second with online shopping and micropayments being significant uses. We know it’s still early days for cryptocurrencies; however, we expect continued growth in this category as adoption rises, particularly in Nigeria.
According to 42% of respondents, improvements in transaction security and protection against hacking will positively influence their level of confidence in cryptocurrencies.
Market sentiment may have been underwhelming in 2018, but with increased awareness fostered by platforms like Luno, we’re sure to see an uptake in the adoption of cryptocurrencies during 2019.
In the coming months, we will continue contributing to the growth of the cryptocurrency market in Nigeria, focusing on education and accessibility. To learn more about Bitcoin, Ethereum, and the technology behind cryptocurrencies visit our Learning Portal at www.luno.com/learn.