24 January 2019

Nigerians See Value in Cryptocurrencies, Despite Slow Adoption - Report

Photo: Bitcoin

A recent survey report conducted by Luno, an online platform for trading cryptocurrency, has revealed that cryptocurrency has great potential and has come to stay in the Nigerian online space, despite its slow adoption rate at the moment.

The report described Nigeria's payment landscape as changing fast with a gradual rise in the trade of cryptocurrencies.

Developed 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 the global financial system.

Building on the 2017 edition of the Luno Cryptocurrency Awareness Survey, the recently released 2018 survey report delved even deeper in its research, surveying over a thousand people, and 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 indicate a positive future for cryptocurrencies in Nigeria.

Analysing the report, the report, Luno Country Manager, Nigeria, Owenize Odia, said: "We expect to see growth in the industry during 2019, despite the significant price volatility we saw 2018."

According to the survey, over 65 per cent of respondents expressed familiarity with cryptocurrencies. From participants, 76 per cent of men and 54 percent of women said they were aware of cryptocurrencies.

The report further revealed that 48.09 per cent of the participants said even though they do not presently own cryptocurrency, they were willing to buy in the future. Notably, female respondents edged this group at 51 per cent. This willingness to buy, paired with the 38 per cent of respondents who said they already own cryptocurrency, leads us to expect continued adoption, the report said.

According to Odia, the report 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 per cent of those who own cryptocurrency claim to own Bitcoin, specifically. Ethereum, Bitcoin Cash, and Litecoin are a distant 2nd, 3rd and 4th at 30 per cent, 23 per cent and 22 per cent respectively," Odia said.

Giving reasons why Nigerians buy cryptocurrency, the report said an overwhelming 76 per cent majority buy cryptocurrency as an investment. Those who use cryptocurrencies for payment or remittance, sitting at 30 per cent, came in second with online shopping and micro payments being significant uses. Although it is still early days for cryptocurrencies, however, it is expected to continue to growth in this category as adoption rises, particularly in Nigeria, according to the report.

The report further revealed that 42 per cent of respondents, strongly believed that improvements in transaction security and protection against hacking would 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 are sure to see an uptake in the adoption of cryptocurrencies during 2019," Odua said based on the interpretation of the survey.

"In the coming months, Luno will continue to contribute to the growth of the cryptocurrency market in Nigeria, focusing on education and accessibility," Odia added.

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