Forecast of Bitcoin
The Bitcoin forecast in Nigeria is looking good. Bitcoin (BTC), the popular cryptocurrency, has come to light in Nigeria and has gained popularity. Especially after the collapse of the infamous project called Mavrodi Mondial Moneybox (MMM). Created in 2016, this project promised its investors a 30% monthly return on investment, both in fiat currency and bitcoins.
From the very beginning, given the totally unrealistic appreciation, it was clear that this was a fraud. Many people have fallen into a debt trap from which there is virtually no escape after investing in MMM or other subsequent Ponzi and pyramid schemes.
It would appear that this negative experience will lead to the Nigerians rejecting the cryptocurrency. But the opposite is true. Not only is it interested in bitcoins growing steadily in this country, but Nigeria is also number one among African countries for this largest cryptocurrency.
Despite the fact that the Central Bank of Nigeria warned citizens of this African country that Bitcoin is not legal tender in the country, Nigeria was one of the African countries with the highest number of new bitcoin users in 2018. This information was published last year by the Chartered Institute of Bankers of Nigeria (CIBN). Therefore, Bitcoin forecast will continue growing in the country.
Causes of interest
So what is behind this growing interest in Nigeria’s bitcoins? About five main factors contribute to the adoption of bitcoins:
Firstly, what prevents more people from entering the cryptographic industry is their lack of education. Nigeria experienced this situation in 2016 in connection with the Ponzi and pyramid schemes, which in this country grew like mushrooms after the rain. However, this is changing very quickly in Nigeria. In this country, cryptographic education is growing at a relatively rapid pace. Meetings, conferences, podcasts, and social media groups are organized every day to educate more Nigerians in bitcoin and cryptocurrency trading.
An alternative source of income
Forecast on Bitcoin in Nigeria. Thanks to the corrupt government, Nigeria is one of the countries with high levels of poverty. In 2018, it was estimated that 86.9 million of the country’s population live in extreme poverty. Considering that 190 million people live in this most populous country in Africa (as of 2017), this figure represents almost half of the country’s population. And for this reason, many Nigerians are looking for an alternative source of income. Therefore, Bitcoin seems to be the number one choice for them.
With increasing levels of poverty, more and more young people are entering the global economy with a focus on digital services. The situation in Nigeria, however, is not at all good, mainly because the Nigerians can not use Paypal, or other options, such as Money Gram and TransferWise. These systems are not only expensive and slow but also have a rigid verification system. Consequently, there are obvious difficulties in receiving payments from foreign clients. And here comes Bitcoin forecast again. It offers them a flexible, almost immediate and cheaper way to receive cross-border payments after providing services to clients and companies.
As Tyler Winklevoss, co-founder and CEO of the Gemini Trust said:
“PEOPLE CHOOSE CRYPTED EXAMINES FOR THE QUANTITY OF FREEDOM TO OFFER. NEVER BANKS CAN’T CONTROL YOUR BITCOINS! ”
With Bitcoin, Nigerians can send and receive currencies globally without being stopped.
The store of value and value of Bitcoin
Further, inflation in the country, and the subsequent blinding devaluation of Naira, the fiat currency in Nigeria, has made this currency lose the function of storing value. And that was one of the reasons that led people to save the value in the deflationary currency, which is Bitcoin. Above all, this can protect investors from excessive printing of money from central authorities and other uncertainties.
Conclusion on Bitcoin forecast
To sum up, there are currently no regulations in the field of cryptocurrencies in Nigeria. In September 2019, the Securities and Exchange Commission (SEC) announced that it would set up the Fintech Planning Committee and the Blockchain / Virtual Financial Assets Working Group.
The task of these groups is to create a framework to support innovation and regulation within the blockchain and virtual financial assets. Members of the group include regulators, technical experts, and private sector representatives.
More information about Nigeria here: https://en.wikipedia.org/wiki/Nigeria