Why you should invest in Bitcoin in Nigeria
Bitcoin is one of the many cryptocurrencies we have. It is regulated by its users and with no intervention from higher authorities or the government. It is based on cutting-edge technology known as blockchain.
Since 2009, Bitcoins have grown in popularity around the world. You can invest in it or use it as a form of payment. In 2017, 1 Bitcoin was valued at around $20,000, currently, 1 Bitcoin is worth more than $40,000. Bitcoin is currently the most popular peer-to-peer payment method.
Bitcoin’s value is increasing as a result of its goodwill and positive impact on users, which has been building for several years. The traditional method of exchanging goods and services is currently being challenged by Bitcoins via their official website.
With the state of regulation in Nigeria, you might wonder if it is safe to invest in Bitcoin in Nigeria. Well, you can invest and transact with cryptocurrencies in Nigeria safely. You just don’t need to make use of your debit cards issued by Nigerian banks.
That aside, is Bitcoin really worth investing in or is it just hype. Find out below as I explain some reasons why you should invest in Bitcoin.
1. Bitcoin is still new as an asset
Stocks, bonds, and, more recently, real estate have been considered asset classes. Now, Bitcoin is gaining momentum and recognition as a new asset class. With startups like Patricia in Nigeria bringing institutional Bitcoin investing to the mainstream, it’s likely to appear in pension funds and financial advisor recommendations soon. Bitcoin is also gaining popularity among organizations looking to protect their cash from inflation.
2. Bitcoin isn’t affected by other markets
Bitcoin is unaffected by stock market declines. A generalization, but not an incorrect one. That shouldn’t be a surprise. After all, Bitcoin was created in response to the stock market disaster, the real estate bubble burst, and general skepticism in traditional money systems. Modern investors value risk control and portfolio diversification. The price of Bitcoin is only affected by demand and supply among users.
3. Bitcoin isn’t affected by Inflation
A global concern is the devaluation of fiat currency; it’s a major issue in Nigeria as we’ve seen the value of Naira reduce drastically in the past years. Even the United States has an inflation rate over the 2 percent threshold set by the US Federal Reserve. Because Bitcoin is finite, only a certain amount of coins may ever be issued so the inflation issue is avoided.
Inflation is actually decreasing over time as the Bitcoin incentive for mining a block is halved every four years. The second Bitcoin halving will occur around early 2024, reducing inflation from 1.6 percent to about 0.8 percent. With rising commodity costs in 2021, the rationale of Bitcoin’s constrained supply is becoming evident.
4. Bitcoin worths a lot
The price of Bitcoin currently is millions of Naira. This has placed the cryptocurrency in a more valuable position than Gold. Bitcoin is global and not controlled by any government or entity, it is difficult to mine, and it has a limited supply, which boosts its value. Because it is not subject to inflation, it does not depreciate, making it a superb store of wealth. Unlike gold, Bitcoin is easy to store and transfer in tiny or big amounts. The same bitcoin wallet can hold 0.25 and 25 BTC.
5. Government or banks can’t seize your Bitcoin
In Nigeria as well as other countries, banks can freeze your fiat cash or confiscate your assets without prior notice. Cryptography is unique. No central bank or government controls it, therefore if you own your Bitcoin wallet keys, only you have access to and control over your money.
6. Many people are accepting Bitcoin
Bitcoin is no longer seen as a fraud or fake money in Nigeria. Many big companies are incorporating Bitcoin solutions into their products as the benefits of blockchain technology become clearer. Overseas, in the US, to be precise, institutions like the Bank of America and Wells Fargo are experimenting with blockchain, fueling hyper-growth in blockchain infrastructure.
7. You’re in total control of your Bitcoins
Wanna know where your money comes from, or who controls its value? Not recently, if you’re like us. We all know that money exists, whether we have a lot of it or not. A currency devoid of government control, kept in banks, and impervious to hyperinflation and corruption is a currency devoid of government control. Bitcoin offers that flexibility and puts you in 100% control of your money.
8. The price will always increase
Many individuals believe Bitcoin is too volatile to rely on due to its recent price changes. While price volatility has caused spectacular rises and losses, most recently in 2017-2018, Bitcoin’s overall arc has been upward. That is, if you hold it for long enough, it is more likely than any other asset class to appreciate in value. Furthermore, when Bitcoin’s price grows, the quantity of money necessary to move its price by a percentage decreases.
Bottom Line
Bitcoin is a decentralized digital currency that uses a blockchain to keep track of transactions.
Bitcoin miners employ complex computer systems to solve challenging tasks in order to confirm blocks of transactions, which are added to the blockchain record and reward miners with bitcoins.
The rest of the Bitcoin market can buy or sell tokens via cryptocurrency exchanges or direct sales. The Bitcoin ledger is protected from fraud via a trustless system, and Bitcoin exchanges try to prevent theft, albeit high-profile thefts have occurred.
With all of these, it’s safe to say Bitcoin is a worthy investment.