[2023-03-01] Forbes - The Nigerian Election And Naira Crisis Are Fueling Bitcoin

[pawel7777]

Another Bitcoin-related piece from Forbes today. SHTF scenarios like this one really highlight Bitcoin's true potential as censorship-free digital cash.

The Nigerian Election And Naira Crisis Are Fueling Bitcoin Adoption

https://www.forbes.com/sites/abubakarnurkhalil/2023/03/01/nigerian-election-and-naira-crisis-is-fueling-bitcoin-adoption/?sh=5a7ba7ed35d4

The recent economic cash crisis in Nigeria, caused by the naira redesign, political climate, and economic conditions, has increased bitcoin's value proposition for average Nigerians. In Africa, bitcoin offers an indispensable financial safe haven.

Key Facts:

• The naira redesign has exacerbated the current economic hardship faced by Nigerians and increased pressure on the unbanked.
• Nigerians headed to the polls on Saturday to decide the next leader of Africa’s largest democracy, with economic challenges being top of mind.
• Given the current economic climate, bitcoin is viewed by many Nigerians—especially amongst the younger generation—as a safe haven for both the underbanked and unbanked as economic conditions worsen.

(...)

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[yhiaali3]

Because of this deterioration in the Nigerian naira and the high demand, especially by young people, to buy bitcoin, the price of bitcoin in Nigeria has risen to about 38,000$, as I read in some news several days ago.

I do not know if the election of a new leader will solve the growing crises in the country, because the purchase of bitcoin at this very high number from the market price is an indication of the deteriorating situation of the Nigerian naira and also indicates the great demand for bitcoin as a safe haven.

[pawel7777]

Because of this deterioration in the Nigerian naira and the high demand, especially by young people, to buy bitcoin, the price of bitcoin in Nigeria has risen to about 38,000$, as I read in some news several days ago.

From what I've read, that's not quite true. I think that was/is a result of converting BTC Naira price into USD at the "official", inflated rate.
Quick search: official rate: 1 USD = 461 NGN; and the "black market" rate: 1 USD = 755 NGN (source)

This makes sense, and essentially means it's not so much that BTC is appreciating in price, but Naira is worth much less than officially declared.

[NeuroticFish]

Because of this deterioration in the Nigerian naira and the high demand, especially by young people, to buy bitcoin, the price of bitcoin in Nigeria has risen to about 38,000$, as I read in some news several days ago.

From what I've read, that's not quite true. I think that was/is a result of converting BTC Naira price into USD at the "official", inflated rate.
Quick search: official rate: 1 USD = 461 NGN; and the "black market" rate: 1 USD = 755 NGN (source)

This makes sense, and essentially means it's not so much that BTC is appreciating in price, but Naira is worth much less than officially declared.

You're right. The newspapers have greatly fueled this misconception, but it was debunked nicely on bitcointalk, see:
Misconception of selling at premium in Nigeria

Basically the BTC-USD parity is the normal one, just the USD price/rate in Naira is much bigger on the street than what's in the official papers.
So the premium is not on Bitcoin itself, it's actually on USD, if we can say so.

[Woodie]

If this is really true, feel bad for those that aren't tech savvy or aren't privileged enough to know how to go around the cash shortages and the alike by using digital currencies such as Bitcoin.

But to dissect this issue further, where is the money going,are Nigerian citizens keeping money in their homes and not taking it to the bank..What's really going on

And elections are over and still no improvements,hope BTC won't be perceived to be the bad asset and the current government goes for cryptos by banning them to try force people to bank their money...

[Kakmakr]

There are currently two technologies that are being used as alternative payment options in Nigeria, namely Bitcoin and MPesa. The one is centralized and the other decentralized... so it might help, if someone could educate those people on which one should be the best.

The danger of centralized technologies like MPesa are that the new government can block transactions over Cellphone providers, but they cannot do that with Bitcoin transactions. (Where would you rather keep your wealth in uncertain political situations like this?)