Crypto ownership – Despite the downturn in the crypto market, Nigerians have continued to acquire digital assets in their numbers.
The latest report on cryptocurrency ownership and adoption reveals that Nigeria has the second highest number of BTC owners with recourse to October 2022, with a 48% increase from 16.1% comparing the same month a year earlier.
Australia maintains a pole position with 61% of crypto owners holding Bitcoin. Finder’s cryptocurrency adoption index measures the growth of cryptocurrencies worldwide through an ongoing survey of internet users in 26 countries.
According to a report by Coingecko, a global crypto market platform showed that Nigeria beat other global users surveyed to emerge as the country with the highest search ranking in crypto since the bear market in April with more than 371 key search phrases.
The value of the cryptocurrency has plunged in recent months, with the price of the flagship BTC falling from $69k per coin last year to below $20k in May 2022.
It traded for $20,075.50 at 5:30 pm Nigerian time on Tuesday, compared to $63,277 a year ago. The market crash also saw the value of Ethereum and Cardano plummet.
What Financial Analysts are saying/crypto ownership and downturn
Financial analysts and crypto traders who spoke to this highlighted reasons Nigerians, especially youths, remain resilient in the crypto space despite the market downturn.
Financial market analyst for CT Traders, Raphael Idu, said there’s more beyond investing in crypto, adding that Nigerian youths known for leveraging opportunities on the internet are tapping into other areas of crypto ownership.
“We have crypto investors and we have traders. The difference is that everybody involved in the crypto market are investors but not everyone is a trader.”
“The crash of the crypto market doesn’t only bring negative effects but has its positive sides too. When there’s a crash in the market, traders tend to trade towards that direction and make money from the crash, but investors lose money because they don’t know how to trade the market movement.”
According to Idu, Nigerian youths are more interested because they believe in the platform’s ability to change within a short period if traded properly.
“The market has bearish and bullish seasons, many youths, especially Nigerians, understand the market very well,” he said.
Henry Izuchukwu, a crypto trader, does not think it will be easy to erase cryptocurrency from the mind of an average Nigerian youth.
He said, “We have seen people rise to fame and wealth through the platform.
“The ban in the country and the current nature of the market changed nothing because once it rebounds, it will be back with another life-changing opportunity, bringing more youths to the millionaire club.
“I will say it is a movement that will be difficult to stop and that is why a lot of stakeholders in the blockchain space are advocating and engaging the federal government to see reasons for it.”
For every fall in the crypto market, the rebound is sure, and when it comes, more millionaires emerge from the youthful category who understands, trust and monitor the market.
Crypto ownership goes beyond a crypto holding, your ability to understand the dynamics of trading around guarantees profit-taking even in the face of the plunged market.