The Naira is one of the most volatile currencies currently. Dropping to lows of 290 on official markets, civilians just cannot trust the Naira to keep their assets safe as Nigeria teeters on the verge of a recession; will Bitcoin be the solution to this financial problem? Today we’ll explore the current state of the Naira and if the time to transition has arrived.
Political events have been the main reasons behind the fall of the fiat currency. The dependency of the Naira on Oil has been the Achilles heel of the currency itself. A slump in the production of oil in the country combined with the falling price of Brent crude has had a devastating effect on the value of the Naira. Last year was fairly peaceful for the currency, considering the exchange rate remained around the 200+ mark. The black market was flourishing but currently has run into overdrive amid concerns Buharis government lost out on over $16 Billion of oil profits and an amnesty deal with militants was ended.
The devaluation of the Naira may yet have a way to go and while capital may be at risk Bitcoin’s potential as a store of value has yet to be expanded. Currently Bitcoin’s strong suite has been trading and remittance which people have benefited from. However Bitcoin as a savings option may seem strange, not having your money in your hand. Bitcoin has maintained prices of $660 + for a matter of just over a month. Compared to the Naira which is on the verge of a drop to 400 per USD, may seem a legitimate option for a long term savings. You too can grab some Bitcoin via the NairaEX exchange, Nigeria’s leading Bitcoin exchange. Whether it’s to store your assets safely or just to find some much needed stability, Bitcoin may be the currency of the future…