The recession caused by the coronavirus crisis also forced people to consider financial alternatives
In a survey carried out by Paxful, a bitcoin online marketplace, Kenya is the 8th largest bitcoin trading hub worldwide, Business Today reports. The United States is the largest bitcoin trading hub followed by China, Canada, the United Kingdom, India, Australia, Kenya, Philippines, and South Africa consecutively.
In Africa, Nigeria is the largest bitcoin hub followed by Kenya. South Africa is the third country in Africa followed by Morocco and Tanzania.
Despite the outbreak of the coronavirus pandemic, Kenya saw a surge in Bitcoin trading in 2020 compared to previous years.
So far, Bitcoin worth Ksh 5.103 billion was traded in 2020 in the country. This is a significant increase compared to 2019 where Ksh 891,730 million was traded, Ksh 139,098 million traded in 2018, Ksh 26,958 million traded in 2017, and Ksh 1,102 million traded in 2016.
In 2020, August saw a significant surge in Bitcoin trading in Kenya with the highest trading volume of Ksh 969,153 million.
The Bitcoin growth in Kenya in 2020 can be attributed to arbitrage earning opportunities. As such, traders can buy an exchange at a lower price and sell at a higher price making a profit.
The increase in Bitcoin trading in Kenya can also be attributed to the growth of Bitcoin remittances. Although Bitcoin as a mode of payment comes second in Kenya with M-PESA being the first, it is still preferred as it is fast, cheaper, and secure.
However, most Bitcoin users receive or send the currency and exchange it through M-PESA. Some forex traders also use Bitcoin to top-up their accounts.
We’ve reported that one Redditor revealed on his throwaway account called ‘TheDumbTwin’ that he and his brother received a $100,000 inheritance each. However, they undertook different investment options.