Bitcoin Prices Surge in Nigeria, Argentina, Turkey Amid Inflation, Binance Founder CZ Loses $12bn
- Bitcoin price surged in Nigeria, Turkey, and Argentina on Friday, October 27, 2023
- The development follows surging inflation in the three countries, which also face currency devaluation
- Nigeria is reportedly softening its stance against crypto trading as the majority of its citizens seek refuge against the plunging value of the naira
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Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy
The price of the flagship cryptocurrency, Bitcoin, is selling at an all-time high in some countries facing currency devaluation and political suspense, including Nigeria and Turkey.
As of the morning of Friday, October 27, 2023, Bitcoin hit an all-time high in Nigeria, Turkey, and Argentina as citizens turned to safe assets amid high inflation rates.
Source: Getty Images
Bitcoin sells for N28.4 million in Nigeria
Bitcoin sold at N28.4 million in Nigeria, 12.4 million Argentine pesos, and 979,000 Turkish lira as the countries’ currencies continue to fall.
The International Monetary Fund said Argentina faces triple-digit inflation, with the country’s currency ranking fourth in the list of currencies with the highest annual inflation rates.
The Turkish currency and the naira are ranked 6th and 15th, with inflation rising 25% and 52% over the past year in those countries.
The drop in the purchasing power of the currencies has increased Bitcoin demands, which is considered a hedge against inflation.
Crypto adoption in Nigeria, Turkey, and Argentina has grown despite restrictions on digital assets.
Nigeria ranks high in crypto trading
Data from Chainalysis showed that Nigeria is the second most active country in crypto adoption.
Nigeria has continued to record substantial trade volumes in Bitcoin despite restrictions placed on the digital currency by the Central Bank of Nigeria.
Instead, the apex bank is touting its CBDC, the eNaira, as an alternative to cryptocurrency.
Crypto transactions in Africa have surged 9% yearly, reaching 57.6 billion as of June 2023.
According to reports, the Nigerian government is softening its stance on crypto trading as digital assets become predominant.
There were talks of legalizing Bitcoin in Nigeria as the government revealed in December 2022 that it would pass a bill to that effect.
Turkey and Argentina are ranked 12 and 15 countries on the Chainalysis list with the highest crypto adoption.
Binance founder loses big as trading volumes drop
The report comes as Binance founder Changpeng Zhao saw a substantial decline in his wealth.
Bloomberg reported that the founder of the world’s largest crypto exchange platform lost an estimated $12 billion, representing a massive 82% decline in his net worth.
The crypto billionaire is now worth about $17.2 billion.
The decline in CZ’s fortunes was due to a 38% drop in the revenue of Binance.
The exchange witnessed a significant decline in trading volume throughout 2023, contributing to this wealth drop.
Naira bounces back, appreciates by over N200 against the US dollar in hours at the P2P market
Legit.ng reported that speculators hoarding the dollar were given a rude awakening on Friday, October 27, 2023, as the naira, within hours, appreciated by N166 to the dollar in the Peer to Peer market.
Financial technology companies and cryptocurrency companies mainly use the P2P market.
Checks by Legit.ng show that the exchange rate of the naira, which began on Friday, October 27 at N1279/$, is trading at N1,070 as of this report.
Source: Legit.ng
