Nigerians Run To Bitcoin For Safety, Take The Cue From Venezuelans
The ability of Bitcoin to resist inflation, its characteristic independence towards government legislation among other several qualities makes it an automatic safe haven for embattled economies. On Monday, Feb. 6, 2017, youths across different cities of Nigeria took to the streets to protest against the leadership of the nation. One of the major reasons for the nationwide protest is the high level of inflation of its national currency. Nigerians are revolting against government. At the time of writing, the exchange rate of the Nigerian Naira to the US dollar in the parallel market is about....
Related News
According to social media reports, Binance, the world’s largest cryptocurrency exchange, is restricting the accounts of African users, mainly Nigerians and those who use its peer-to-peer (P2P) exchange. Many Nigerians have gone to Twitter to complain that their accounts were blocked by the exchange without explanation. #BinanceStopScamming Trends Many Binance users, particularly Nigerians and other […]
Although their central bank is attempting to outlaw use of cryptocurrencies, it’s clear that Nigerians have real need for access to bitcoin. The post Nigerians Need Bitcoin, So Where Will The Restrictions Lead? appeared first on Bitcoin Magazine.
Although their central bank is attempting to outlaw use of cryptocurrencies, it’s clear that Nigerians have real need for access to bitcoin.
Nigerians are thought to be accumulating foreign currencies which they believe will protect their wealth from the naira’s volatility as well as the surging inflation. Further, as a research paper in a journal published by the Central Bank of Nigeria (CBN) found, Nigerians’ use of dollars exceeds IMF’s 30% threshold. Exchange Rate Volatility and Currency Substitution According to a report, this preference for foreign currencies (or currency substitution as CBN economists call it) however, needs to be contained in order to maintain the effectiveness of the central....
The weakening bolivar and strict capital controls have forced Venezuelans to use bitcoin in their everyday life. Bitcoin has already been recognized as the best performing currency of 2016. The digital currency’s price has been exhibiting a positive trend over the year. The decentralized nature of Bitcoin makes it immune to conventional market forces, which in turn makes it the best alternative currency in the world. This very feature of Bitcoin is now coming handy to countless Venezuelans who are currently going through the worst economic phase in the country’s history. The problem....