The role of Bitcoin in protecting Nigerian Naira inflation and savings.

[Liocen]

Our Nigerian Naira is not far behind the inflation of fiat currencies worldwide.

If we compare the price of Naira and Gold in 2015, we can see that -
In 2015, the average price of one ounce of gold was $1070, which means that in 2015, it would have taken about (1÷0.005059)×1070=211 500 Naira to buy one ounce of gold. [According to Exchange-rate.org, the exchange rate of Naira at that time was 1 Naira=$0.005059] Exchange rate history/ngn-usdt

In 2015, the average price of Bitcoin was - about $300. That is, if someone wanted to buy 1 BTC at that time, he would have had to count Nigerian (1÷0.005059)×300=59 300 Naira.

Today, the price of gold is $3340 per ounce. If someone wants to buy an ounce of gold today, he will have to spend (1÷0.00065)×3340=5 138 460 naira in Nigerian naira. Today, the exchange rate for naira is 1 naira = $0.00065.Central Bank of Nigeria
Today, the price of a bitcoin in Nigerian naira is (1÷0.00065)×119 000= 183 076 920 naira.

That is, if someone had bought an ounce of gold in 2015, he would have made a profit from it today (5 138 460-211 500)= 4 926 960 naira. Which is 23 times more than the naira he invested.
And if he had bought Bitcoin then his profit would have been (183 076 920-59 300) = 183 017 620 Naira per day. Which is more than 3086 times the Naira he invested.

From the above, it can be understood how much the Nigerian Naira is being devalued.
In such a situation, to prevent this devaluation, we should keep converting our Naira into Bitcoin. Since the supply of Bitcoin is limited, the possibility of Bitcoin being devalued is very low. At the same time, Bitcoin is currently considered part of the strategic reserve by the whole world, so it is almost certain that the price of Bitcoin will increase much more in the future.

What is your opinion on this? Do you think Bitcoin can prevent inflation and protect our Naira from devaluation?

[Doan9269]

Bitcoin will only save us individually if we adopt its use, we shouldn't expect it solving the inflation challenge with the economy, because the government are the main brain behind how the economy is collapsing each time, because they failed to realized how poor is the entire monetary system we run with fiat currency, also they lack the competencies of engaging the people toward the economic growth, the reason for bitcoin was not intended for the government to fix the wrongs in the economy, because Satoshi already know that they wouldn't permit for a decentralized economy.

That is why for individual that adopt bitcoin, they will be quick in leaving the centralized financial system captivity and be free with bitcoin and secure their privacy, am afraid if things can be promising of getting better, because the Nigerian Naira has always been fallen against USD and they are not permitting bitcoin to fix this, except we do that individually on our own.

[Joeboy]

What is your opinion on this? Do you think Bitcoin can prevent inflation and protect our Naira from devaluation?

The simple answer to this is that Bitcoin cannot stop neither can it even prevent inflation or devaluation  at the "national level." The power to control inflation or stabilize naira at the "national level" rest with the Government through their monetary and fiscal policies.  Where Bitcoin truely proves itself as an hedge against inflation or currency devaluation is at the "personal level."  By storing your savings in an asset such as Bitcoin which has a fixed supply (21 million), your purchasing power will be protected over time, if one is disciplined enough to hold through volatility.

At the personal level, Bitcoin can show it's usefulness if one can acknowledge and utilize this principles

• Making use of a Discretionary Income for Bitcoin Accumulation
• Treating Bitcoin as a long-term saving strategy and not a get-rich quick tool
• Makimg use of a simple plan like the NCA/DCA strategy depending on the currency of your investment
• Practicing self custody. etc.

[Ambatman]

Yeah Bitcoin being a deflationary asset is a bane to inflation. Nigeria isn't the only country suffering from inflation
Every country dey hear ahn from inflation even Argentina worse pass naija.

Bitcoin is currently considered part of the strategic reserve by the whole world

USA is not the whole world. Our country never even send Bitcoin as a strategic reserve movement.

Do you think Bitcoin can prevent inflation and protect our Naira from devaluation?

Devaluation is wrongly used
It's usually intentional and by the government and always in comparison with another currency. It's policy driven.
 
What you are speaking about is depreciation of currency value.

[CryptoHeadlineNews]

Our Nigerian Naira is not far behind the inflation of fiat currencies worldwide.

If we compare the price of Naira and Gold in 2015, we can see that -
In 2015, the average price of one ounce of gold was $1070, which means that in 2015, it would have taken about (1÷0.005059)×1070=211 500 Naira to buy one ounce of gold. [According to Exchange-rate.org, the exchange rate of Naira at that time was 1 Naira=$0.005059] Exchange rate history/ngn-usdt

Yes, you are absolutely right, because it is obvious you made your calculations from the average price of Naira as given above in the image in 2015. (i.e 1 Naira = 0.005059 Dollar). Which also implies that the average price of dollar to Naira (vice-versa)  was given to be  (i.e $1 ÷ 0.005059 = 197.66 NGN).

Hence, I will be doing another calculations on the highest price of Naira to dollar back in 2015, to check how much would have been the highest amount in Naira for one to buy an ounce of gold in 2015 as given below.


I actually don't know where you got your calculations from, because they are absolutely wrong.

So, given that the highest price of Naira to dollar as given in the link and image presented above (i.e 1 Naira = 0.005556 Dollar), then it also simply means that if you were to convert the rate into it's equivalent from dollar to Naira (i.e $1 ÷ 0.005556 = 179.98 NGN).

Hence, it simply means that in 2015, the average rate of dollar to Naira was $1 = 179.98 NGN .....

Therefore,
If 1 ounce of gold was given to be $1070, then it means it's value in Naira would have been also ( $1070 × 179.98 NGN = 192,578.6 NGN )


But omo.. this calculation looks somehow oh.. lol 😂, how the calculation for highest con dey low pass average nah..  Can somebody recheck this again nah..

[BtcAnalyst1]

Yeah Bitcoin being a deflationary asset is a bane to inflation. Nigeria isn't the only country suffering from inflation
Every country dey hear ahn from inflation even Argentina worse pass naija.

Bitcoin is currently considered part of the strategic reserve by the whole world

USA is not the whole world. Our country never even send Bitcoin as a strategic reserve movement.

Do you think Bitcoin can prevent inflation and protect our Naira from devaluation?

Devaluation is wrongly used
It's usually intentional and by the government and always in comparison with another currency. It's policy driven.
 
What you are speaking about is depreciation of currency value.

No country wey dey this world wey nor get wahala as it concerns inflation at certain periods. De thing bi say Naija case too much, since this present regime, inflation fon take over the economy and i think say government no get any clue how dem go take save the economy from total collapse. Na God dey help many Naija people from poverty, cost of leaving has gone too high, which way Naija!

[Mia Chloe]

Our Nigerian Naira is not far behind the inflation of fiat currencies worldwide.

I think what you meant here is Nigeria is one of the most affected country when it comes to inflation and devaluation. This is mostly as a result of an improperly managed economy which is very bad. Fact is bitcoin doesn't really have a role in reducing inflation by default but it can be used to achieve such.

USA is not the whole world. Our country never even send Bitcoin as a strategic reserve movement.

Yeah but bitcoin is not the only thing that can be used as an edge over inflation. If the government is not interested in crypto then they should as well improve the economy with other possible means.

[Ambatman]

Yeah but bitcoin is not the only thing that can be used as an edge over inflation. If the government is not interested in crypto then they should as well improve the economy with other possible means.

One of the major cause of inflation is the increase of money in circulation
And what increases this is their constant printing of money
This while seeming subtle, aggregate to be something else.
In a nutshell, for country like Nigeria wey dey naturally blessed
Our major problem boils down to those wey dey at the top.

[Doan9269]

Yeah but bitcoin is not the only thing that can be used as an edge over inflation. If the government is not interested in crypto then they should as well improve the economy with other possible means.

One of the major cause of inflation is the increase of money in circulation
And what increases this is their constant printing of money
This while seeming subtle, aggregate to be something else.
In a nutshell, for country like Nigeria wey dey naturally blessed
Our major problem boils down to those wey dey at the top.

To add on what you both have been contributing, the leaders doesn't want for the freedom in the financial aspect, because that is what gives them the edge to control individuals finances and how they were able to extort also from the government assets all in the name of the economy smooth runnings, while on the real sense they are only fighting for their own self and pocket, except the entire financial policy regulating the fiat system are revised and amended, things will continue to be the same now and always, that is why we do don't have to wait for our government to adopt bitcoin before we can embrace it uses, because we are after freedom which they are not ready to give except taken by us, and bitcoin is the only way.

Our leaders are earning from the economy dilapidation, that is why they find it a pleasure to continue in writing budgets, because inflation effects is never ending and they are the major reason why it will not end, because the financial policies under a centralized economy were totally ineffective for economic progress, but they wouldn't allow for bitcoin because it will render them useless.

[Adbitco]

You actually do not have anyone to be blamed on this because as then the knowledge weren't passed and people didn't have much information about what they had today. Another thing you should also considered is that, there were people who invested earlier than this but wasn't able to hold and immediately they had little price change they all sold off their investment and started lamenting till date. One thing you must know is that people are are always like this and they often p to regret when things are becoming more fairer and nice maybe, the price keeps appreciating. I could also remembered a friend back then we bought BTC nearly very cheap but he sold off today he is crying for not holding till date, and still told him that same thing that made you sold your coin earlier could have still made you to sell now, so nothing to regret because there no enough knowledge passed to people about bitcoin or gold and how our currency could be this devalued for nearly 10 years now.

[B-BossMan]

To me it's not surprising, since our Naira loses value. What is the government expecting from the citizens? Already our economy is very poor in nature, and our government tends to move on no matter how. So the government needs to put more emphasis on building a stronger economy so the citizens will no longer be living in a poor economic condition. As such, the aim of the government is to decentralise Bitcoin in nature, which I don't think would be possible.

As the citizens tend to secure their own wealth by themselves, you can see that many people that accept the centralised nature of Bitcoin are safe from any interaction and distraction from the government; your wealth is controlled by you, not any authority boards.

In addition, Bitcoin will definitely gain more growth every time and also gain recognition.

[Zigabel]

Saving in Bitcoin instead of Naira isn't a bad idea but at dame time isn't completely a save heaven and that should be held at the back of your mind. Bitcoin over the years has experienced progressive exponential in growth which has made it a better option as compared to naira who has suffered and has been battered by inflation but it happens to be the only recognised legal tender here in Nigeria which provides it with that flexibility Bitcoin doesn't have here in Nigeria.

Nevertheless I support that if you must save, Bitcoin isn't a bad idea at all but it's not also completely perfect so make sure to understand the pros and cons of Bitcoin before you make that switch of Saving platform so you understand what you are doing so you don't get sweeped by volatility while running away from inflation and in the end you  still find yourself at a loosing end which you never envisaged.

[Lembo69]

Bitcoin will only save us individually if we adopt its use, we shouldn't expect it solving the inflation challenge with the economy, because the government are the main brain behind how the economy is collapsing each time, because they failed to realized how poor is the entire monetary system we run with fiat currency, also they lack the competencies of engaging the people toward the economic growth, the reason for bitcoin was not intended for the government to fix the wrongs in the economy, because Satoshi already know that they wouldn't permit for a decentralized economy.

That is why for individual that adopt bitcoin, they will be quick in leaving the centralized financial system captivity and be free with bitcoin and secure their privacy, am afraid if things can be promising of getting better, because the Nigerian Naira has always been fallen against USD and they are not permitting bitcoin to fix this, except we do that individually on our own.

If you accept Bitcoin, your money will be safe. And there will be no fear of inflation. Because Bitcoin is decentralized, the government has no hand in it. Satoshi Nakamoto created Bitcoin to protect it from government taxes. A Bitcoin holder can realize when he does not have to be under the government's control. He does not have to be a victim of bank holidays or public crowds. To prevent inflation in the country, first of all, the fiat currency must be managed. And the average per capita income must be taken into account and the expenses must be listed.

Inflation is created due to the government's bank printing excess money. Because more naira is printed than the country's assets. Bitcoin transactions are low-risk and transactions can be completed safely. Because Bitcoin is a digital currency. The owner of which is you alone. No government approval is required here. If you want, you can fulfill all your needs through Bitcoin.

[Agbe]

Bitcoin will only save us individually if we adopt its use, we shouldn't expect it solving the inflation challenge with the economy, because the government are the main brain behind how the economy is collapsing each time, because they failed to realized how poor is the entire monetary system we run with fiat currency, also they lack the competencies of engaging the people toward the economic growth, the reason for bitcoin was not intended for the government to fix the wrongs in the economy, because Satoshi already know that they wouldn't permit for a decentralized economy.

That is why for individual that adopt bitcoin, they will be quick in leaving the centralized financial system captivity and be free with bitcoin and secure their privacy, am afraid if things can be promising of getting better, because the Nigerian Naira has always been fallen against USD and they are not permitting bitcoin to fix this, except we do that individually on our own.

That is true Bitcoin can only be helpful to individuals who has invested in it Bitcoin can't be used in solving the inflation of the country because that is an economic issue which is caused by failure of government in addressing the economic problems of the country.