Cryptocurrency The Best Bet As Nigeria Hits Recession Again
With the continuous devaluation of the naira notes in the world exchange rates, cryptocurrency has proven to be the best bet for Nigerians in 2020 even as Nigeria heads for a third recession. This piece is on cryptocurrency the best bet in Nigeria.
Lots of Nigerian citizens and residents have in past times turned a blind eye to this fast-growing business platform called the cryptocurrency. In recent times, because of the situation in the country, the record has it that the Nigerian population involved in crypto trading is quite alarming.
Cryptocurrency is a digital coin that serves as money, organized to function as an electronic method of exchange. Here records of coin ownership are beautifully stored inside an e-edger/space that exists in form of a computerized database. To secure the records of transactions, strong cryptography is used. The tool “cryptography is also used to create new coins, control the creation of additional coins, and validate transferred coins.
These coins are not existing in paper forms neither can they be felt by hands. They are also not created issued or regulated by a central authority. Cryptos are decentralized as there is no central authority, contrary to other centralized digital currencies and not central banking systems.
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Immediately these digital coins are created or minted as the case may be and have not been sent out, they are considered as centralized digital currencies. Put simply after crypto coins are manufactured issuance by a single user automatically makes it a centralized coin.
If after creation, these coins are now implemented with a decentralized control mechanism, then they are seen as decentralized.
Every crypto coin/currency functions through a ” distributed ledger technology” usually called a blockchain. This tool works as a general financial database.
It is on record that Nigeria cannot salvage her situation as she heads for a second recession after five years.
The Nigerian bureau for statistics(NBS) has it on record that in Q3 2020 there has been a shift of 3.62% in real GDP. This confirms the wide gossips that the Nigerian economy has once again fallen into another recession after years.
Inside that data disclosed by the National Bureau of Statistics (NBS) for Q3 2020, it has been noticed that with the variation of 3.62% in the total gross domestic product(GDP) for Nigeria, there is all indication that indeed the Nigerian state has not been able to make her self recession-proof. It was in 2016 that there was a cut of 1.62% in the economy, and it has been five years since then.
This general decline in the Nigerian GDP for Q3 2020 is strongly associated with the low Business activities at both national and global points which have affected the economic growth rate of the country. This decline was caused by the COVID 19 pandemic which the whole world is still trying to recover from.
It has been observed that the non-oil sector did contribute a big deal to the real GDP in Q3 2020. This contribution has been graded 91.27% which is much more than its contribution of 90.23% in Q3 2019 and also 91.07 in Q2 2020. The oil sector in Q2 2020 contributed 8.93%, in Q3 2019 it contributed 9. 97% but in Q3 2020 it has reduced to 8.73%.
As a result of these statistical findings, investing in currencies that are not regulated by any authority becomes very necessary. To learn more about investing in various currencies, click now.
Related: 5 questions to ask before investing in any cryptocurrency
What this implies is that as long as the value of the Nigerian naira keeps on depreciating all business, profits and saving goes done with it. It is therefore important to at least start investments in cryptocurrencies immediately to run away from the devaluation hazards.
Conclusion
In conclusion, the assertion “cryptocurrency the best bet in Nigeria” is as true as it becomes. The prices of coins keep going up and life is just as beautiful as it comes. However, you must note the volatility of the tender and work with experts in handling the necessary things.
