Despite government regulations limiting crypto exchanges between financial institutions in what has been described as an attempt to protect citizens and observe the growth of technology, many citizens have continued to engage in cryptocurrency regardless. crypto.
Today, the average young Nigerian is interested in cryptocurrency, not just because of the trend, but also to seek financial freedom. This article explores the various opportunities that a bitcoin-dominated payment system could create for average Nigerians in terms of economic opportunities.
How Cryptocurrencies Empower Nigerians
According Statistical, Nigeria is one of the countries in Africa with not only the highest population but also the highest number of cryptocurrency adoptions. On a scale of 1 to 10, 6 out of 10 young Nigerians are interested in cryptocurrencies. About 4 of them must have invested in these currencies, either trading Bitcoin or running a remittance/OTC business.
There is a thriving market for crypto in Nigeria, and we will look at some of the ways in which bitcoins and other cryptocurrencies create opportunities for Nigerians:
1. Bitcoin offers financial freedom and inclusion
In a country with a high poverty index and where the naira triggers increased inflation, bitcoin and other cryptocurrencies represent a more alternative source of asset distribution and financial transfer. Returning to the bitcoin white paper written and published by Satoshi Nakamoto, the idea of cryptocurrencies is to create an inclusive payment system that is simpler, faster and without intermediary influence.
2. Cryptocurrencies create job opportunities for Nigerians
Beyond financial inclusion and providing financial services to the “unbanked”, bitcoin has become a source of income for Nigerians.
According Cointelegraph, the share of jobs in crypto and blockchain grew 118% in 10 months and hired the most of any industry in the past year. Nigeria is no slouch as many have secured jobs in crypto writing, blockchain development, product design, NFT marketing, community management, game development, and more.
The nice thing about these opportunities is that they pay between $200 and $3,000/month, depending on experience, which is remarkable since the the country’s minimum wage is around $70. Based on the prevailing dollar to naira exchange rate and massive unemployment, Nigerians can now earn income from trade, invest in bitcoin and work in the cryptocurrency industry.
3. Cryptocurrency trading and OTC/Remittance
It is the most popular cryptocurrency investment strategy in Nigeria. Cryptocurrency enthusiasts nationwide buy bitcoins to resell them for a profit or stake them to earn passive income. Staking a cryptocurrency simply means placing it in a pool of liquidity or offering it for use in borrowing and lending services to those who need the asset.
Nigerians also offer remittance services, through which they exchange bitcoins or other cryptocurrencies for Naira Over-the-Counter OTC. For example, a Nigerian over-the-counter (OTC) trader might offer to buy bitcoin from another Nigerian and pay the person in Naira. Millions of naira are traded daily just for OTC transactions, creating a steady stream of income for traders.
4. Cryptocurrency Adoption in Nigeria Creates Blockchain Consciousness
blockchain is the underlying technology that powers the bitcoin cryptocurrency. It has also been used as a decentralized infrastructure/network powering many other decentralized projects and platforms.
The government has a role to play.
Based on the anticipation of a broader use case for crypto and the enthusiasm shown so far by Nigeria’s young population, the bulk of the technology’s success in the country lies with the government. .
If the government lifts the ban on banks for crypto trading and puts systems in place to make it more mainstream, more Nigerians will be encouraged to invest in cryptocurrencies. The government just needs to regulate the market and ensure that bitcoin is not used to promote Ponzi schemes, perpetuate cybercrimes or promote fraud.
Nigerian financial market stakeholders, including financial service providers, banks and lending companies, and regulators, need to better strategize to harness the potential of cryptocurrency in the country. Once fully regulated and recognized by law, bitcoin and even cryptocurrencies would not only attract foreign direct investment (FDI) to the country, but also help solve some of the economic difficulties that have plagued the country lately.