How Crypto Is Making A Difference In A Developing Country Like Ours
Yesterday I had some intriguing conversation with aome friends. We spent a lot of time talking about the global economy, with the country serving as a microcosm of the larger picture.
One of the fundamental questions we intended to address was whether crypto currency was a better alternative to money. In this case, Fiat.
As I know one or two things about crypto , I provided my thoughts and responses based on my years of experience with both, particularly in the light of current events and developments. Also looking at the country's present deplorable economic situation
To begin with, understanding the value proposition of crypto currencies in comparison to traditional cash is essential. The Nigerian Naira is a perfect illustration of how fiat money is failing.
Over time, my level of trust in the use and adoption of crypto currencies has grown a lot. This is even made easier when you consider the current issues confronting the world's economy, as well as the reckless decisions made by the regulating authorities.
Cryptocurrencies have provided answers in more ways than one, at least to me. You would definitely understand more if you lived in a nation like Nigeria.
The simplicity of usage and transactions is one of the major advantages of crypto currencies . Regardless of how you look at it, transactions are always faster and easier. With so many limits on fiat, especially in Nigeria, this point stands out and comes in useful. More on this later.
Another advantage of cryptocurrency is that it helps, in a way, to safeguard one's finances, especially against inflation. This specific argument has fueled its widespread acceptance in many parts of the world.
Almost every country in the globe is facing some sort of inflation or another. As a result, the value of the country's currency has fallen. Britain has had one of its worst periods of inflation in forty years. Nigeria has fared even worse. The country is seeing its greatest rate of inflation in history.
The naira, the country's currency, is at an all-time low versus the US dollar. The current exchange rate against the US dollar has nearly doubled since this time last year. The local currency is currently selling for over 830 Naira per USD, up from around 400 Naira last year.
As terrible as that may sound, for crypto fans like us, it has actually been a blessing.
Crypto has been utilized as a hedge in numerous ways. Majority of people have more cryptocurrency in their savings, particularly stable coins, than they have fiat money.
You will comprehend better when you compare holding a cryptocurrency like a stable coin to holding the Naira since this time last year.
To put things in perspective, if you had 500,000 naira converted to and saved in USD since this time last year, you should be having about 1,000,000 naira if you convert back to naira now.
The value of the dollar has doubled. And the slide is not looking like stopping. This makes it more justified to keep investing in and saving in cryptocurrency.
Going further restrictions on how consumers utilize foreign exchange from their banks have recently been put in place. Currently, majority of people are unable to pay for online dollar purchases. Most providers are stopping their services. Making international transaction a pain in the neck.
There is a limit on the few services that are still available. These restrictions can occasionally be as absurd as $10. What transactions can one complete with $10? Due to this, people are unable to effectively conduct their foreign transactions.
People need something that works. It has been a difficult task for many people, especially those without knowledge of crypto. The good news is that crypto has provided a solution, thanks to recent advances.
Debit and credit cards supported by Visa are appearing more frequently than one can count. I recently made a transaction of $250 in a matter of seconds, using a card powered by cryptocurrency. With a fiat-backed version, this would have been almost impossible in Nigeria.
Adopting cryptocurrency has been a no-brainer for a nation like Nigeria, which is dealing with high inflation and severe economic difficulties. Of course, it has its own drawbacks (what doesn't? ), but the benefits by far outweighs them. To sum up, Crypto would always be a much better option for many of those of in developing nations.