The Bitcoin price reached well above the $20,000 mark in the past few weeks. But in Nigeria however, this price is a bargain. Because there, Bitcoin is traded at a price of more than $40,000. Why did this happen and what does it mean for the future of Bitcoin?
Where is the Bitcoin rate in Nigeria?
The Bitcoin price has a certain market price. This market price reflects how the bitcoin is valued against certain FIAT currencies such as US dollars and euros. However, this does not mean that Bitcoin can be obtained at this price in every region of the world.
Because if the demand for Bitcoin in a certain region increases massively, then the price in this region could rise sharply. Such is the case on the crypto exchanges of the most populous country on the African continent. There, the Bitcoin price reached more than $40,000, with peaks even at $60,000.
Why is bitcoin trading at up to $60,000?
The reason for the massive “value gains” of bitcoin is the demand from Nigerians. They do not want to accept the country’s new central digital currency, the eNaira. Due to the lack of interest from the population, the government has restricted cash withdrawals.
Old banknotes are to be exchanged for the eNaira by February 10th. This is causing a bit of a panic in the country, and people are looking for new ways to keep their money’s worth. Search queries for terms like “buy bitcoin” on Google have exploded in the past few days. An average price of $38,000 has been established for peer-to-peer platforms.
What does this development mean for the Bitcoin price in Europe?
We have to keep in mind that the Bitcoin course is always only an exchange rate against a FIAT currency. If a FIAT currency loses value, then of course the equivalent value for the Bitcoin also increases. This was the case most recently, when the euro reached parity with the US dollar. In this case, the dollar and euro exchange rates were the same.
Should the euro lose value in the future, the price will rise more for us in Europe than in the USA. We use the US dollar in pricing as it is the reserve currency for the entire FIAT world. The interest rate hikes by the ECB were unavoidable after the interest rate hikes in the USA.
Ultimately, we need to realize that Bitcoin has value per se and it can very well act as a store of value against a potential FIAT currency decline. A situation like Nigeria could be closer to Europe and the US than we think.
CryptoTicker Podcast is HERE!
Every Wednesday, you can tune in to the Podcast on Spotify , Apple and YouTube. The episodes are perfectly tailored for a duration of 20-30 minutes to quickly and effectively familiarize you with new topics in a fun setting on the go.
Subscribe & never miss an Episode
Spotify– Amazon – Apple – YouTube
- Aptos up 100% in the past week! Can APT reach $50?
- Big News: Ripple Price is about to TRIPLE? This News Confirms…
- Is Inflation BAD for Bitcoin Price?
- This COUNTRY is running on Bitcoin – Bitcoin El Salvador Success Story
- Top 3 reasons why Bitcoin will continue to RISE in the coming weeks!
- The Crypto Market is Crashing yet again because THIS Speech
- Crypto Millionaire: Buy THESE Cryptos before they BOOM in 2023?
- Ethereum Price reaching $3,000 in June 2023? Possible, here’s why!
- Popular Crypto Exchange Binance Finally Supports Euro/GBP
- Crypto Correction Happening – Why are Cryptos DOWN?
- 3 Reasons why Bitcoin price will rise MASSIVELY in 2022
- What are Stellar Lumens and How They Work?
- The Big Ripple Price Prediction for 2023 – How high can the XRP price go in 2023?
- 3 Reasons why Bitcoin reaching $50,000 in 2023 is Possible!
- Can Bitcoin reach 0 $? Here are the Thoughts of Professional Analysts
- Top 3 Methods To Withdraw Bitcoin to Bank Account
- Bitcoin Price Crash and Rebound – Should you Buy Cryptos Today?
- Top 5 Fiat Currencies That Compete With Bitcoin
- Can Dogecoin Price reach $1 in 2023? Those Facts DON’T LIE!
You might also like
More from Bitcoin News
Silvergate Crypto Bankruptcy: Why did Silvergate Crash?
Silvergate crypto bank has announced that it will begin the process of "winding down" its operations and liquidating its bank. …
Bitcoin Prediction SPOT ON: Is Bitcoin Bullish or Bearish in 2023?
Bitcoin retraced lower and reached a price of around $22,300. Is Bitcoin bullish or bearish in 2023? Let's analyze in …
THIS Bitcoin Chart is Reassuring! Buy Bitcoin TODAY and Profit?
There could actually be a scenario in which Bitcoin reaches its all-time high as early as 2023. Why could this …