Why Nigerians Need Crypto Not Dollars
Life after petrol subsidy removal
The Nigerian economy has experienced a significant downturn in the past three months. The removal of the petrol subsidy has led to a drastic increase in fuel prices. In less than three months, we've seen the price surge from 200 Naira to 617 Naira.
In May 2023, a full tank cost 15,000 Naira; by June, it had soared to 45,000 Naira; and by July, it had risen even further to 55,000 Naira. This is for the same car, using the same fuel, in the same country, with the same salary.
Harsh reality of the Naira
Let's take a moment to visualize this - imagine you're planning to take a trip. In May, you could fill up your tank and hit the road with just 15,000 Naira.
Fast forward to July and you're burning out 55,000 Naira for the same trip. That's not a road trip anymore, that's a journey to bankruptcy!
Furthermore, the shortage of foreign currency in the country has worsened, causing the USD to rise against the Naira.
At the time of writing, the exchange rate stands at 1 USD to 870 Naira, a significant increase from 750 Naira in January.
Earning dollars is not enough
The combined impact of these economic factors is devastating for the average Nigerian, particularly those running businesses and supporting families.
Even those earning in dollars are not exempt from this economic reality. I can't help but empathize with the struggles faced by many Nigerians during these trying times.
With the skyrocketing price of commodities, purchasing power has diminished. What $100 could buy before, now only buys about $60 worth of goods.
Sadly, the current establishment has failed to provide solutions or plans to improve the situation.
Times Are Changing
To survive in this economy, and in the future, one must explore new ways of working and earning. Cryptocurrency, despite sounding cliché, presents a viable alternative and solution.
It's not just about earning in dollars, but about leveraging one's earnings to generate more income through various investment protocols and applications available with cryptocurrency.
Cryptocurrency it is only in crypto that you can have the possibility of a 20% Annual Percentage Rate (APR) on savings and the ability to send and receive money globally at a fraction of the cost and speed of traditional methods.
Nigeria in Crypto
It's clear that the traditional ways of earning and saving are no longer sufficient. There is a need for us to adapt and explore new opportunities.
According to a report by Chainalysis, Nigeria is the second-largest country in the world for cryptocurrency adoption.
The report found that the value of cryptocurrency transactions in Nigeria increased by 2,000% in 2021.
It is likely that the rate of inflation and cryptocurrency usage will continue to rise in Nigeria. As the value of the naira continues to decline, more and more people will look to cryptocurrencies as a way to protect their wealth.
Crypto in Africa
Interesting thing is how this situation is not unique to Nigeria alone but also many third world countries especially in Africa, it is not just not enough to wait for economic progression it is futile, the onus is on everyone to apply relevant technologies to make their lives easier.
For example, Bitcoin
Bitcoin is a cryptocurrency that is not subject to government or financial institution control. This makes it a valuable tool for people in Africa, it facilitates cross borders payments in the most secure way as it relies on mathematical cryptography and algorithms that can’t be messed with.
Bitcoin is designed to have a limited supply, hence the more there’s demand for it, the higher the price goes, much like digital gold, this makes it an hedge against inflation for many economies, this year, the price of Bitcoin has performed tremendously compared to the Naira even in all its volatility, with the potential of going up in price due to incoming bull run as I’ve discussed in previous posts.
Amina Mohamed, a single mother in Kenya, uses Bitcoin to send money to her family back home. She says that Bitcoin is much cheaper and faster than traditional methods of sending money, and that it has helped her to cut cost and provide for her family during difficult times. Many people in Africa use Bitcoin to invest, pay for goods and services and send remittances.
Hive
Many others like myself, earn Hive cryptocurrency for blogging in the Hive community. Hive is a blockchain protocol that powers platforms like Medium with a unique token distribution system.
It is like Bitcoin that is not subjected to a government or financial institution and even better, Hive can be sent globally with 3sec speed and almost feeless, i.e 0.01 for millions, it gets even better, Hive has an algorithmic stable coin (HBD) which offers 20% APR when saving it on Hive blockchain.
Speaking of powering social media platforms, the latest buzz in the world of technology has been about the two tech giants Mark Zuckerberg and Elon Musk, racing to dominate the social media market because they both know the value of data market, to them, it’s profit on profit.
How about, you own your data while still enjoying the social platform benefits of Twitter but in an environment where users are in total control of their accounts and is also monetized in a way that every stake holder shares in the success of the platform through its unique token distribution system?
This leads us to Leofinance, a Twitter like social media platform but powered by Hive where users earn LEO cryptocurrency for their social activities, kind of what Elon and Zuck are struggling to build, or should build but aren’t because they want to own and control all that data. These are only few examples and applications of crypto and Hive can perform.
Conclusion
The economic reality in Nigeria and many other African countries is undoubtedly harsh. Yet, with every challenge comes an opportunity. Cryptocurrencies like Bitcoin and Hive are not just a trend; they are becoming essential tools for survival in an ever-changing economic landscape. They offer promising solutions to many of the problems we face today, from high inflation to difficulties in transferring money.
The stories of Amina Mohamed and countless others who have benefited from Bitcoin, as well as the numerous users earning on platforms like Hive and Leofinance, demonstrate the transformative potential of cryptocurrency. The growing adoption of cryptocurrency in Nigeria and other African countries is a testament to its utility.
While cryptocurrencies may not solve all of our economic problems, they offer a new path for individuals to take control of their financial destiny. The onus is on us to adapt, learn, and leverage these digital assets for our benefit, let's keep an open mind, educate ourselves and explore the opportunities that cryptocurrencies provide. Remember, the goal is not just to survive, but to thrive.
Thanks for reading. Take charge of your financial future.
Posted Using LeoFinance Alpha
Great post @mistakili.
Bro, thanks for this post.
Living in this country, i can boldly say that anyone who has a way of earning both in crypto or dollars, has done a him/herself a big favour.
The hardship seems to be too much, that people can't even complain due to the fear of those in power.
The main reason why i see most people not making use of the crypto scheme or any blockchain related matters, is the entertaining/social life style that is common among the younger generations. The younger ones are not focused again due to the influence of celebrities who don't add values to their lifes. Most of them seems to be very comfortable with poverty, while others chooses to take a wrong pathway.
Well, let me not dive too much on this problems, because i feel we as citizens of this country, has a vital role to play by making a decision to use something more decentralized and beneficial.
Even if i am not earning as much as i except, but i believe there would be changes in my finance towards the ending of the year🙌. Financial advice from leofinance community is enough to build up a stable nation.
Dollar to naira price is currently above 850niara/dollar in both binance and the countrie's current rate😢. Just like a nigerian person would say "Just Dey Play".
I hope most people would be able to realize what they've been missing.🤗
Many truths here, I’m on Twitter and I see how young people rush to engage with celebs who mostly offer them nothing in return, spending hours in their comment section for a chance at receiving giveaways. Maybe not comfortable in poverty, but comfortable in their comfort zones, not willing to try new things.
Truth is it adds up, the compounding effect of every 1$ that gets to be saved everyday adds up with time. Many like myself are a testament to this.
Even the ones who have remote jobs earning dollars and think it ends there it doesn’t, earning dollars is better than earning Naira but for how long till high cost of commodities eat all the dollars away, there are new ways to do things. Hopefully many youths will realize this and give themselves a chance at better life.
Thanks for your comment bro 😎
Appreciate 🙌
I stopped by ridesharing business (which was a nightmare in the first place) when this whole fuel price thing started and I am glad i did because it is a total mess right now. This whole thing is affecting the entire nation.
Crypto has been my haven. I came back to a space i had abandoned for over a year, and it has been positive so far. I hope more people come onboard.
Most youths think economic hardship stops when you start earning dollars forgetting that commodities also cost more now, it’s only sustainable for so long, how about supercharge your dollars? How does this not intrigue and excite people our age? I don’t get it.
I do hope more people come onboard