The BTC 19 price was a great start for all crypto enthusiasts, as it gave them an impetus to start investing in the market and making their opportunity to generate passive income on a new and emerging industry. Things started going even better the next year, even despite the pandemic. But the buy best and then sell higher approach did not last long, as the market quickly faced the same recession that had started setting into the global economy. With markets going downhill, the converter rates of most cryptocurrency exchanges followed and so did the national economies of leading states.
The Nigerian economy was not spared the aftermath of the pandemic and the ensuing crisis, which eventually erupted in Eastern Europe, following the collapse of the so-called “rules-based order”. The national NGN 1 currency suffered a catastrophic depreciation and lost as much as 200% in value. The result was the loss of purchasing power on the part of Nigerian citizens, forcing them to turn their attention to alternative means of investments. Among the latter were cryptocurrencies, many of which offered good chances of generating income, sufficient to sustain families.
1BTC to Naira Today
Bitcoin is a very restrictive asset for the vast majority of users in the cryptocurrency space. The price of the asset makes it impossible for most to trade it, and those who own it seldom decide to sell their investment, hoping that it will rise in price in the near future. Despite predictions about sudden and sharp price increases, the dominant cryptocurrency has been reeling against the backdrop of the global financial and economic crisis, losing value along the way.
Such a decline in the price of BTC indicates that the demand and supply curve, which had been attributed to it as the leading reason for appreciation, is working, but in reverse order. When traditional assets falter, investors seek to place their funds in more inventive assets, like cryptocurrencies. This was a trend that had been noticed back in 2017, but no longer holds true. Instead of rushing to stock up on Bitcoin, investors are abandoning the asset in favor of secure havens, like bank deposits.
If Nigerians wish to sell their BTC for Naira now, the time is not right, since BTC has lost most of its price and is not showing signs of recovery. On the contrary, the aggravating situation in the world is pushing prices down on assets and making them unreliable as investments.
Key Takeaways
I BTC is losing its attractiveness as an asset for investment, then the time has come to consider different options. Among the latter, Nigerians should consider their own national economy, since the world is moving away from centrism towards diversification.
