Humans have always searched for ways to quantify their earnings and wealth- even before the use of hard currencies. Many things, like cowry shells and beads, have been used in the past to signify standard unit for transactions. As time passed, hard currencies were created and generally accepted- various ones for various regions. However, the state of the world is at a point where there is a trend to digitize as much as could be. One of these digitized quantities is the hard currency; humans have invented a set of digitized currencies called cryptocurrencies (Crypto).
A crypto is a digitally owned money, designed to work as a medium of exchange to perform transactions. Basically, cryptos are digitized forms of the typical hard currency- used to perform transactions at a faster rate. The biggest form of cryptos in the world today is the Bitcoin- concerning use, network and economic value. A Bitcoin is a decentralized digital currency system that allows users to perform transactions on its network- without the need for intermediaries.
Nigeria is the holder for the largest Bitcoin network in Africa- currently. This is largely down to the fact that its currency, the Nigerian Naira (NGN), was the first Bitcoin convertible currency in Africa. It also has one of the world’s largest crypto communities- due to its large economy. This indicates that an investment in Bitcoin in Nigeria would be a worthy one.
The fact that the Bitcoin network is a decentralized one, with no one in control, means that it is an open market for aspiring Nigerian investors. There are various ways and strategies to make money via Bitcoins in Nigeria; they are: trading, investments, remittance, and mining. Trading Bitcoin, just like stock market trade, involves buying of Bitcoins at low cost, and selling when the prices go up. For Bitcoin investment; due to how scarce Bitcoin is, its prices continue to increase; thereby making it a great avenue to invest in. Bitcoin Remittance involves the use of Bitcoin to perform transactions, thereby reducing transfer cost. Mining Bitcoin is the process of using large computers to perform Bitcoin transactions, while earning Bitcoin as profit.
In Nigeria, due to its large Bitcoin network, trading has become more rampant than what it used to be. There are now more companies and investors interested in buying and selling Bitcoin, making it an important asset. To buy and sell Bitcoin in Nigeria, the first step is to get a Bitcoin wallet- via a registered application. This helps to receive, hold, spend, and perform transactions with the Bitcoin. The next step is to open a Bitcoin trading account with one of these interested companies. And the last step is to link the account to the Bitcoin wallet to start actual trading on that platform.
An important subject concerning the Bitcoin business in Nigeria is its security. There is an increasing amount of fraudulent Bitcoin dealers in Nigeria, almost as large as the Nigerian Bitcoin network itself. Therefore, it is important to check for the legitimacy of an application or company before setting up the Bitcoins. These companies usually take advantage of the market by posing as interested buyers, or fraud applications.
Crypto and Bitcoin are continually increasing in size, and their businesses are proving profitable in Nigeria. However, there are still questions as to how much of an impact Bitcoin can have on an economy like Nigeria’s. Is this going to end up like just another phase like various other businesses? Or could Bitcoin actually end up having a larger impact on the Nigerian economy?