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Why The Average Informed Nigerian Is Crazy About Twitter And Bitcoin

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Image Credit: Kabiru Yusuf

It goes without saying that cryptocurrencies are quite popular in Africa’s largest country. This popularity exists quite pervasively amongst a demographic of the young, internet surfing section of Nigeria’s population. Obviously, access to information and particularly the internet are key to the penetration of any cryptocurrency in any society, and this informational access isn’t particularly lacking in Nigeria. 

Nigeria has an internet penetration of about 50% amounting to around 104 million people with internet access according to DATAREPORTAL. 15.8% or 33 million people use social media in Nigeria with 61.4% of that figure using the micro-blogging platform, Twitter. Therefore, there are around 20 million twitter users in Nigeria, almost a tenth of the country’s population. While this may not seem like a lot compared with the rest of the nation, Twitter has been instrumental in Nigeria in formulating public opinion, having conversations as well as being a site for various campaigns. The power of Twitter in the hands of Nigerians became very apparent in October 2020 as it was the platform of choice for the organization of the now infamous #ENDSARS protests.

Quite a lot of reasons make twitter as popular as it is especially amongst Nigeria’s young people. The ease at which posts on twitter could travel far and wide compared to many other social media platforms means it is a solid tool for advertisement for large and small entrepreneurial ventures alike, the latter of which many Nigerians are participants of. Secondly, Nigerians have grown weary and distrustful of traditional media outlets and often times get their information through social media, thereby, turning Twitter into a place where views can be aired quite easily. The fast nature of information transfer on twitter allows it to be the platform of choice for activities such as crowdfunding, organization of protests and in some cases, crime watch.

Bitcoin serves as the umbrella term for cryptocurrencies, especially in Nigeria, much like “Indomie” does for noodles. Nevertheless, as Africa’s Bitcoin Nation, cryptocurrencies have seen tremendous growth in Nigeria over the last few years. This growth is largely driven by the same demographic that dominates social media use. 32% of Nigerians surveyed online by Statista said they owned at least one cryptocurrency asset. And, in the first quarter of 2021, Nigeria’s peer to peer BTC trade volume was in excess of $99 million, nearly 3 times the volume of the next highest nation, Kenya. In 2020, Nigeria generated $400 million worth of bitcoin transactions, ranking third place worldwide behind the US and Russia.

So why are bitcoin and/or other crypto assets so popular? Well for one, it highlights the dire state in which Nigeria’s economic scene finds itself. Nigeria’s unemployment rate stands at 33.3%, which is what one would describe as dangerously high. Also, the local currency, the Naira, has been constantly fraught with increasing inflation. Hence, the naira has been largely unstable and it’s purchasing power has fluctuated a lot recently. In response, a lot of people have turned to cryptocurrencies to act as a buffer against the volatile economic scene. Furthermore, the decentralized and peer-to-peer nature of cryptocurrencies give a lot of people a preferred alternative to traditional banking institutions.

The benefits afforded by cryptocurrencies like Bitcoin and social media platforms like Twitter were put on full display during the #ENDSARS protests. Twitter was the mobilization platform of choice for its ease in information dissemination while bitcoin was the value exchange system of choice for crowdfunding and financing the protests due to the inability of regulatory authorities to pin down cash flow. All in all, both platforms underscore a discontent and distrust of the populace toward traditional methods of communication or wealth creation. 

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Satoshi Nakamoto, creator of Bitcoin now 15th richest man in the world

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Bitcoin is the most popular and noted cryptocurrency in the world. It paved the means for other cryptos being taken seriously, and after all, the one who created the currency is currently unbelievably wealthy.

Satoshi Nakamoto, the anonymous creator of bitcoin, is currently the fifteenth wealthiest person within the world when the cryptocurrency’s recent value rally.

Nakamoto’s web price is calculable to be up to $73 billion, with crypto holdings within the region of 750,000 to 1.1 million BTC. This ranks them higher than Walmart heirs Jim and Rob Walton, furthermore as Mexican entrepreneur Andres Martinez Slim.

The price of bitcoin hit a brand new incomparable high earlier this month higher than $68,000 following a rise of quite three hundred per cent over the last year. 

One outstanding prediction model has forecast it might rise higher than $100,000 before the tip of the year, which might see Nakamoto ascend to the highest ten of the world’s wealthiest, with a web price on a par with capitalist Warren Buffett.

Nakamoto represented their vision for a peer-to-peer digital currency in an exceedingly written report in 2008, before launching bitcoin many months later in Jan 2009. 

When collaborating with alternative developers on the project for nearly 2 years, Nakamoto withdrew and has not been active on-line for over a decade.

Several bitcoin wallets that are believed to belong to Nakamoto additionally stay untouched, with their contents rising in worth by quite ten million per cent since they were last used.

The mystery of Nakamoto’s true identity remains unresolved, although evidence points to many potential candidates.

Early crypto pioneer Hal Finney was the primary person to ever receive bitcoin through an on-line dealing and various attempts were created to link his online activity to Nakamoto’s. He denied being the cryptocurrency’s creator and refused to invest in the UN agency until his death from amyotrophic lateral pathology (ALS) in August 2014.

A high-profile Newsweek cowl story in March 2014 claimed to own “unmasked” the discoverer of bitcoin, claiming that Japanese-American man of science Dorian Satoshi Nakamoto was behind it. The article was widely debunked following its publication.

That same year, a book by money author Saint Dominic Frisby singled out Nick Szabo as bitcoin’s creator, informing his style and therefore the truth he designed a precursor to bitcoin’s electronic money system. Szabo denied the claims, tweeting: “Not Satoshi, however many thanks.”

In 2015, Australian applied scientist Craig Wright claimed to be Satoshi Nakamoto however, he was broadly greeted with disbelief from senior figures among the crypto business. Many days after proclaiming himself the discoverer of bitcoin, Wright backwarded his claims with an apology on his website.

“I believed that I might place the years of obscurity and concealment behind Pine Tree State,” he wrote. “But, as the events of the week unfolded and while I was ready to publish the proof of access to the earliest keys, I broke. I don’t have the spirit. I cannot.”

Mr Wright has since been sued by the estate of deceased David Keiman, whose family claim worked with Wright and together used the name Satoshi Nakamoto in 2008 to publish bitcoin’s written report.

Presently, Tesla and SpaceX founder and chief executive officer Elon Musk tops the list of the richest folks within the world with his net worth at $266.9 B, as listed by Forbes.

Warren Buffet is hierarchic at the tenth range whereas Facebook founder and chief executive officer Mark Zuckerberg stands at range seven.

If Bitcoin continues to rise, it will come as no surprise that Satoshi Nakamoto may soon eclipse them.

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Bitcoin in the wake of record high inflation

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The values of cryptocurrencies are rising, but also is the price of everything else in the United States. The curiosity of investors in Bitcoin continues to grow as data shows inflation rose to a 30-year high in the United States. 

The pinch of the inflation will continue to be felt by consumers in the United States and around the world as recent data shows that the Consumer Price Index (CPI) rose 6.2% in October when compared to last year. This development further casts doubt on the claims of the Federal Reserve that the inflation is “transitory”. 

Inflation at 6.2% means that if we keep it steady for 10 years, your $100,000 will become $54,800 by then. Compounding is a powerful force. Satoshi is having somewhere right now. #Bitcoin

— David Marcus (@davidmarcus) November 10, 2021

Due to excessive print of the fiat, traditional financial markets took a hit on November 10. Concerns about runaway inflation and the loss of purchasing power weighed heavily on the minds of investors and major indicies pulled back from new record-highs that were set earlier in the week.

That is in distinction to the worth motion within the cryptocurrency market, the place a burst of bullish momentum sparked a 4.7% rally in within the value of Bitcoin (BTC) because the CPI information was introduced.

The rapid rise in inflation over the course of 2021 has led to an increasing number of calls for the Fed to end its easy-money policies and raise interest rates. Many claim that the central bank has pinned itself in a corner and has no easy options moving forward because a rise in interest rates could make servicing the U.S. national debt even more challenging.

In 2021, the speedy and continuous rise in inflation has resulted to an increasing number of appeals and calls to the Fed to put a stop to its easy-money insurance policies and lift the rates of interest. 

Larry Summers, former U.S. Treasury Secretary recently made a statement. He said:

“Global financial markets appear to be anticipating slow growth and low real interest rates for the next few years, which will gut the ability of central banks to guide economies.”

With the management of rates of interest being the first instrument at the disposal of the Fed for exerting influence on the market, it seems that there’s little else moreover continuing to print money that the central financial institution shall be in a position to do in response to ongoing challenges.

The Effect on Fiat and Crypto

These latest developments has uniquely positioned crypto holders to benefit the most, or at least obtain some form of shelter because the declining value of fiat currencies like the dollar has highlighted the power of Bitcoin and other altcoins as hedges against the devaluation and inflation of currencies.

The information from Bitcoin Stimulus shows that Americans who put their $1,200 stimulus check from April 2020 into BTC, would now have $12,172 worth of BTC. An astonishing 914% increase.

These gains were not isolated from the highest cryptocurrency, as the broader market saw an influx of funds that took the total market cap from $ 190 billion to $ 2.95 trillion. during the same period.

As if the increase in value for a large number of tokens on the market was not enough, cryptocurrency holders have also been rewarded with numerous cryptocurrency “stimulus checks” in the form of airdrops like the recent one from Ethereum Name Service, which created a five-figure salary for early users of the protocol. 

Conclusively, people within the cryptocurrency market have benefited generally from the safety supplied by holding assets which can be appreciating in worth as the buying power of fiat currencies deteriorates. And this course has reveal no indicators of slowing down in the nearest future so long the rate of inflation continues to rise.

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The Great Mining Migration from China to the U.S. Explained

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Coming off the heels of China’s now infamous crypto crackdown, the mining rate in the U.S. has now surpassed that of China for the very first time. With a hashrate – a term used to describe collective computing power of miners around 35.4% in July, the hashrate in the U.S. is up 428% compared to September 2020.

In a move dubbed the “great mining migration“, miners in China had been moving towards more crypto friendly countries since May, when the Chinese government called for a crackdown on bitcoin mining and trading. Some of the locations thought favorable enough to entice mining operations include Central Asia, Eastern Europe, the U.S. etc.

However, it is important to bear in mind that mining operations are extremely energy taxing. For said reason, many of the bitcoin miners who had migrated to the U.S. set out for the U.S. state of Texas, one with one of the lowest energy prices in the country. Another favorable advantage for miners moving to Texas is the crypto-friendly political atmosphere regarding cryptocurrencies.

A criticism often levelled at bitcoin mining is that it is bad for the environment and certainly so seeing the enormous amounts of energy bitcoin mining requires, most of which is supplied from fossil fuels. The mining migration has brought about a trend where miners are actively seeking out renewables and or nuclear power, especially in the U.S. Miners are now clustering around states such as Washington, New York and unsurprisingly Texas.


The U.S. is not the only country to have benefitted from the aftermath of Beijing’s anti-crypto policies. Kazakhstan, the central Asian nation has also seen its share of the global hashrate grow with current levels around 18.1%, just behind the U.S. However, many believe that the Central Asian nation is just a junction on the larger trend of miners moving westward. Also, considering that most of Kazakhstan’s energy is derived from coal and a new law to further tax crypto miners in 2022, It stands to reason that many mining operations will eventually migrate from Kazakhstan.

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