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Author Topic: [2018-01-28] Nigeria’s Central Bank Governor: Bitcoin Investing is a ‘Gamble’  (Read 65 times)
cybersofts
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January 28, 2018, 10:46:40 PM
 #1

Nigeria’s Central Bank Governor: Bitcoin Investing is a ‘Gamble’



Nigeria’s central bank governor has become the latest to speak out against bitcoin, claiming that investing in it is a ‘gamble’ and that it may need to be regulated.

Bloomberg reports that speaking during an interview in Nigeria’s capital city Abuja, Godwin Emefiele, the governor of the Central Bank of Nigeria, said:

    Cryptocurrency or bitcoin is like a gamble, and there is a need for everybody to be very careful. We cannot as a central bank give support to situations where people risk savings to ‘gamble.’

Emefiele is the latest person to join a growing list of global authorities that have spoken out about their concern regarding bitcoin and its need to be regulated. Last year, the number one digital currency saw its value rise by over 1,700 percent, with the culmination of December seeing bitcoin within touching distance of $20,000 for the first time.

Heightened interest from retail and institutional investors has meant that there is increasing concern among regulators that the currency is in a bubble due to its volatility. Not only that, but there remains a strong perception that the crypto market is being used among criminals.

Just yesterday it was reported that Tokyo-based digital currency exchange Coincheck had been hacked, resulting in the theft of $530 million worth of NEM, and making it the biggest cryptocurrency theft in history.

Situations like this are what are fuelling the demand for more oversight within the market. However, while countries such as China and South Korea are tightening their stance around digital currency trading, demand for cryptocurrencies continues.

Since record highs with bitcoin last month the currency has slumped in value, and in recent weeks has been struggling to regain highs above $11,000. Now, though, it what has been a slight upward shift, major cryptocurrencies such as bitcoin and ethereum have seen their prices increase. Earlier today it was reported that the two had posted five percent gains.

At the time of publishing, bitcoin’s value is trading at $11,489, according to CoinMarketCap. Ethereum is once again priced above $1,000, at $1,100.

The fact remains, however, that the start of 2018 has not been the best of beginnings for the cryptocurrency market, with many still arguing that it seems like a bubble. According to Emefiele, it is because of this uncertainty around it that he has asked his ‘colleagues in the research and monetary-policy department to study the market and get to know what the issues are.’


Source: https://www.ccn.com/nigerias-central-bank-governor-bitcoin-investing-gamble/
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January 28, 2018, 11:29:20 PM
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Bitcoin growing over 1000% in the last year, no wonder why many people even some big investors called it as a bubble because it reached $20,000 and corrected to $9200 a few weeks ago.
If people want to invest in bitcoin or cryptocurrency, they must aware of the risk such as if bitcoin corrected again, the value decrease as much 50% isn't small number obviously. Like people always mention; do not put all eggs in a basket and do not put money that you are not willing to lose. But, in general, bitcoin always recover and reach a new ATH, it's a good reason for long-term holders.
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January 28, 2018, 11:48:42 PM
Merited by CyberKuro (1)
 #3

Like people always mention; do not put all eggs in a basket and do not put money that you are not willing to lose. But, in general, bitcoin always recover and reach a new ATH, it's a good reason for long-term holders.
Bolded part applies to gambling where people actually can lose all their money. I find it a wrong term to use with Bitcoin since no one is losing anything ~ you will always have your coins, and that regardless of the price.

I can understand that people may get frustrated or upset if the price is going down after them having invested, but that's part of this market. Important to point out as you also stated, the price thus far has always recovered.

It may take a while to recover in some cases, but losses over the long term so far has never occurred if you're a firm hodler. It's just a matter of accepting this market's fluctuations and deal with it accordingly.

Traders trade the volatility, and hodlers keep hodling patiently.

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January 29, 2018, 01:13:40 AM
 #4

Like people always mention; do not put all eggs in a basket and do not put money that you are not willing to lose. But, in general, bitcoin always recover and reach a new ATH, it's a good reason for long-term holders.
Bolded part applies to gambling where people actually can lose all their money. I find it a wrong term to use with Bitcoin since no one is losing anything ~ you will always have your coins, and that regardless of the price.
You will always have your coins, yes, if you hodl when you're at loss. However, if you sold despite the low price because you become hopeless and afraid that the dump might continue, then, you lose especially if the price bounce back.


It's not new anymore about the government or anyone that is part of it to say that investing in bitcoin/crypto is a gamble because it's really risky. If still unregulated nor banned in a country, I see it as government officials are just reminding their people about the possible negative result it may caused.
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January 29, 2018, 01:25:19 AM
Merited by cybersofts (1)
 #5

But in life what is not a gamble? It all is. Investing in stocks is a gamble, starting a business is a gamble, also getting married is a gamble hehe.

There are things that people in government do not want you to do to have more control of your own affairs and to enrich yourself. Remember, the government cannot make you richer but what it can do is make you poorer.

In any case, keep using bitcoin and altcoins, and always be active in the cryptospace.

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CyberKuro
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January 29, 2018, 02:15:40 AM
 #6

Like people always mention; do not put all eggs in a basket and do not put money that you are not willing to lose. But, in general, bitcoin always recover and reach a new ATH, it's a good reason for long-term holders.
Bolded part applies to gambling where people actually can lose all their money. I find it a wrong term to use with Bitcoin since no one is losing anything ~ you will always have your coins, and that regardless of the price.

I can understand that people may get frustrated or upset if the price is going down after them having invested, but that's part of this market. Important to point out as you also stated, the price thus far has always recovered.

It may take a while to recover in some cases, but losses over the long term so far has never occurred if you're a firm hodler. It's just a matter of accepting this market's fluctuations and deal with it accordingly.

Traders trade the volatility, and hodlers keep hodling patiently.

In that case, refers to the part of 'gamble' as the title mentioned; Bitcoin investing is a gamble.
Especially for layman or newbies that have planned to invest in bitcoin, I clearly mentioned the advantage if people invest in Bitcoin as the price increase over time.
But, there will always "correction" which causes bitcoin price to plummet such as happened before, from $20,000 to $9200.
For people who have invested at $2K, it's a great loss and the fact is; we don't know when bitcoin price will recover, whether it takes 2 months or 5 months.
How if they can't wait until bitcoin recover to $20K as they really need cash for something? That's why it's a good thing to note; do not put money that you are not willing to lose.
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January 29, 2018, 10:29:35 AM
 #7

Lol, I heard that investing in the Nigerian currency (managed by, oh I don't know, is it the Nigerian central bank?) is a bit of a gamble also Cheesy


To sum up:

  • Bitcoin is the "gamble" where people progresively win over time
  • Nigerian state money is the "gamble" where people progressively lose over time

Isn't gambling supposed to have some element of unpredictability to it ? Huh

Vires in numeris
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January 29, 2018, 01:16:00 PM
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Lol, I heard that investing in the Nigerian currency (managed by, oh I don't know, is it the Nigerian central bank?) is a bit of a gamble also Cheesy
No. The Nigerian Naira is managed and backed by the multi million dollar checks people get in their email box from the Nigerian Prince.

  • Nigerian state money is the "gamble" where people progressively lose over time
It certainly is. In ten years time the Naira has lost a significant amount of value, which is a pretty shocking fact that they don't like to talk about. Ten years ago 1USD would get you ~115NGN, where right now 1USD will get you ~360NGN. In other words, even if you as average Nigerian working class person save a certain amount of money every month, it still won't be enough to break even in purchasing power. If this trend continues, which will definitely happen, 1USD will at some point be worth beyond 1000NGN. Bitcoin is the perfect hedge to avoid further loss of purchasing power.

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January 30, 2018, 12:48:53 AM
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@1Referee. Africa is a very big untapped market, I reckon. They might have a large, disillusioned middle class, and discouraged from the state of their political and economic system that wants a way out.

Holding bitcoin is a good way out, not physically but financially.

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