The Naira is often considered one of the most beleaguered currencies in the world, Having lost over 200% in value in under seven years, the currency has also lost the trust of its people. Nigerians have had to undergo a lot to understand that the Naira is not a reliable store of value, nor is it a currency that can propel them into a better future. With that in mind, alternatives will have to be found and the cryptocurrency industry is just the thing that Nigerians are looking at for salvation.
Nigeria is an extremely rich country with abundant natural resources, but stricken with poverty and internal strife. The reasons stem deep into the history of the country with its colonial past that literally tore the nation inside out and plunged it into near anarchy. Colonialism did not bring much to Nigeria, other than suffering and systematic plundering of its natural resources. The troubles continued in modern times as criminal and terrorist groups like Boko Haram and others are ravaging across the country and deteriorating its economy by undermining its investment climate. The final blow was struck by the coronavirus pandemic, which shattered the economy and the national currency.
Cryptocurrencies brought a sigh of relief to the Nigerian people, allowing them to use a more valuable and liquid means of settlement that would allow them to store the value of their savings. Bitcoin is chief among the cryptocurrencies, and it can be converted to Naira. The benefits of this conversion are few:
- BTC rate to Naira is constantly floating;
- Naira is not worth the BTC it was converted from.
If Nigerians have the chance of owning BTC, they can forget about Naira. Other cryptocurrencies like Ethereum and Tron fill up the list of desired assets, which can replace Naira and make the process of settlements between people less reliant on the national currency. Naturally, the nation’s central bank tried to intervene with its own digital currency, but the effort was appreciated only partially by the local population, which still monitors the BTC rate to Naira and tries to trade the asset at the most variable exchange rate at the opportune moment for a profit.