MMM new form of payment: Bitcoin price rises to $1,600 in Nigeria
MMM, Nigeria's most popular Ponzi scheme's adoption of bitcoin as a form of payment has led to a huge increase in the value of the bitcoin in Nigeria.
MMM new form of payment
With the large number of participants in the scheme, Nigeria is has a large demand for bitcoin right now.
NairaEx,
one of the leading cryptocurrency exchanges in the country, is trading
BTC at nearly US$1,600 each. This is especially alarming, because the
market average for bitcoin is just above US$1,10 right now.
It
is common to see certain regions of the world trade bitcoin at slightly
higher prices. For example, in China, a 5% premium for bitcoin for a
long time.
What Nigeria is experiencing as
per bitcoin prices has been experienced in Indian exchanges when the
demand for bitcoin was met with low liquidity.
However,
JP Buntinx a bitcoin expert, says Nigeria seems to be doing things very
different from those countries, as their bitcoin premium price is way
higher than expected.
Converting to Naira, trading
bitcoin at NairaEx will currently cost traders 494,755 Naira. This shows
us that the value is equal to nearly US$1,600 at current rates.
That means Nigerian traders are – willingly – paying a near US$600 premium per bitcoin right now.
Although this is a great move for cryptocurrency valuation in general, many wonder what is driving this sudden demand.
One very clear reason is the adoption of bitcoin as a form of payment by MMM, which has millions of participants in Nigeria.
According to Buntinx, a few days ago, it was clear the weekly bitcoin trading volume in Nigeria was on the rise.
Just
last week, over US$1.3m worth of bitcoin was traded in Nigeria –
according to Trail Blazers Nigeria – which is quite enormous.
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