Trade in cryptocurrency, Bitcoin, in Nigeria sustained its positive note as volume of transactions grew over N1.239 billion in the third week of October 2017, according to data from Coin.dance. This is despite the fact that the cryptocurrency community is gearing up for yet another bitcoin fork by October 25.
A bitcoin fork simply refers to creating a new version of bitcoin with its own rules and blockchain. All bitcoin transactions are recorded by a ledger, known as blockchain, which is run by so-called miners.
The virtual currency posted an impressive margin in September, when it rose to over N1.242 billion, although it is yet to reach its all-time high of more than N1.866 billion in volume for the first week of September.
According to Tim Akinbo, founder of Tanjola, a bitcoin exchange that provides Nigerians a fast and easy way to buy bitcoin, the price changes is a result of growing adoption, more demand and many other factors.
“The price of bitcoin only matters to people who are invested in it. For those who simply use it for transactions, the implication is that if I needed 1 bitcoin to send $4,000 (when the price was $4,000 per bitcoin) then, now I only need about 0.67 bitcoins to send that same $4,000 (at $6,000 per bitcoin).
“It does not change the utility for those who simply use it as a medium of exchange. As a store of value, it now makes it more attractive since it demonstrates that it is not only a good store of value but that it also appreciates well attracting more people who want to invest in it as a store of value,” Akinbo said.
Owenize Odia, country lead for Luno, a global bitcoin exchange with branch in Nigeria, said the price keeps changing, also due to supply and demand.
Despite volatility in the market, the price has moved up to near 59 percent in the past month (up 4% in the past week and down 2% in the past day).
A bitcoin fork is expected before the end of this week and usually there are price fluctuations during this period.
“Most platforms, including Luno, stated that they would not support this fork, called Bitcoin Gold.
“There is another fork scheduled for next month, called the SegWit2X fork. That fork seems to have a lot of traction and support and Luno will give Nigerian customers the new tokens,” Odia said.