Bitcoin; the answer to over dependence of the scarce dollar in Nigeria

[CTO114]

A lot of individuals and household rely on the US dollar to perform various transactions. For trades, travels, international business transactions, and even as a store of value. It's no news that Nigeria is short on foreign exchange, as a result move to black market characterized by outrageous rates and charges. Here comes Bitcoin, with it, I can transfer money to any part of the world with ease, freelancing with ease, store the value of my money as against the devaluing naira. Surely the over reliance on the dollar is reduced. We just need someone in authority who's ready to think outside the box!

[Nathrixxx]

Please take note of the following observations I want to make on this.

1. Dollar is not scarce, but inflated.
2. Bitcoin is crypto while Dollar is fiat

So I will rather believe that bitcoin is serving an alternative to the use of dollar in Nigeria and the entire world only for those who are ready to learn, adopt and use a decentralized network for the smooth running of their financial economy system than what fiat has always represented for us under a centralized system and economy.

[Evergreenpost]

It depends on the country and the people involved. Some African countries have not adopted the dollar as a means of settling debts or payments. In Nigeria, only a few institutions and individuals are into Bitcoin, and most of them see it mainly as an investment or an alternative to beat inflation.

However, Bitcoin can also be used for payments; whether by a country, an individual, or a household; if they choose to recognize it as such. But if they don’t see it in that light, then it cannot work effectively.

[Karl_3000]

Bitcoin is not the solution to scare of US dollar in Nigeria, what we need more is higher economic output and less reliance on foreign countries manufacturing and services.

If you are able to transfer money from Nigeria to other countries in bitcoin, that can make dollar not to be scarce as it should be but what about the products that we are buying from other countries and also what about remittance from other countries that are flowing into Nigeria. We have people working abroad that are also sending money to Nigeria. What if they use bitcoin instead.

The effect will be very less but what about people sending money to Nigeria? I think they are more. What if they also start using bitcoin? If they are more, that means the effect will fall more on us as dollar will be scarce more.

It is better Nigeria government work more on economic output which would be the solution to scarce of dollar in Nigeria.

[WhoYouCantKill]

You have a point. Bitcoin proves a better way to reduce total dependence on dollar by operating cross-border transactions and making it easier and securing savings from naira depreciation. Though for such to operate on a big scale, Nigeria have the for supportive policies and better infrastructure. Till then, many will continue to turn to Bitcoin personally but the system depends strongly on dollar.

[Skydrill]

It depends on the country and the people involved. Some African countries have not adopted the dollar as a means of settling debts or payments. In Nigeria, only a few institutions and individuals are into Bitcoin, and most of them see it mainly as an investment or an alternative to beat inflation.

However, Bitcoin can also be used for payments; whether by a country, an individual, or a household; if they choose to recognize it as such. But if they don’t see it in that light, then it cannot work effectively.

This is one of the areas I believe the government has failed in terms of her reforms and should have done something about it to change the system, this particular issue is one of the reasons why the value of the naira is way lower compared to the dollar, it should have been the naira that is being sought after for local and perhaps foreign transactions too, that way the naira would have been very strong, instead we have a situation where even local sourced goods and some other essential commodities requires the dollar for purchase, we really need to review some of these policies.

[Jaycoinz]

A lot of individuals and household rely on the US dollar to perform various transactions. For trades, travels, international business transactions, and even as a store of value. It's no news that Nigeria is short on foreign exchange, as a result move to black market characterized by outrageous rates and charges. Here comes Bitcoin, with it, I can transfer money to any part of the world with ease, freelancing with ease, store the value of my money as against the devaluing naira. Surely the over reliance on the dollar is reduced. We just need someone in authority who's ready to think outside the box!

You are and can still enjoy the privileges of using bitcoin for your transactions other than the dollar like you have stated just that it just have to rhyme with the receiving end because not all work or companies are open to the acceptance or payment through bitcoin but I believe the widespread of awareness have made it possible and with time even the government thinking outside the box will be there so that everything will be more smoothly and performed with greater advantage and even local transactions.

[B-BossMan]

In my own point of view, Nigerians have to depend on the dollar for now, because goods and services are being sold on foreign exchanges, especially oil and other things. To stop all this dependence, our government has to work on bigger infrastructures and tackle economy challenges.

If we can really be able to transact with our able Naira across the countries, Naira dependency will reduce and the Naira will be appreciated more. We bought goods in dollars and sold in naira. It's the same thing with the government when buying outside the country. Moreover, when the government subsidised the fuel, things started changing. Goods in our various markets pumped up, and people started suffering because fuel prices increased, and everyone was saying the dollar has increased and the crude oil has been bought in dollars. Why can't we use our own Naira? ...must we use dollars in every transaction outside the country?

Well, my belief is that with time things will change for the better in the future in this country, Nigeria.

[Agbe]

One problem that has even been disturbing the growth of the Nigerian economy and even the way that our local currency perform has been this uncontrollable over dependency on the dollar which doesn't occur in saner society which the government give importance to the growth and development of their economies, Bitcoin can be used in used in bringing the gap when it comes to making payments across boundaries but I don't think that it a solution to the current economic situation we are been face with.

[justinlamode]

A lot of individuals and household rely on the US dollar to perform various transactions. For trades, travels, international business transactions, and even as a store of value. It's no news that Nigeria is short on foreign exchange, as a result move to black market characterized by outrageous rates and charges. Here comes Bitcoin, with it, I can transfer money to any part of the world with ease, freelancing with ease, store the value of my money as against the devaluing naira. Surely the over reliance on the dollar is reduced. We just need someone in authority who's ready to think outside the box!

Bitcoin have a very big prospect for Nigeria, the only challenge is that those in authority have failed to see the blessings of Bitcoin and how it could help our economy if people are allowed to use Bitcoin freely. Government can even earn more revenue through regulation but instead of thinking in this direction, our government are busy fighting Bitcoin. Assuming they allow Nigerians free use of Bitcoin, people would have build several applications that could help for remittance via Bitcoin. CBN will never approve such application now that they have chosen to fight Bitcoin rather than explore the opportunities it has.

[Btcdeybodi]

OP just to correct some things you said;
(1) That people depend on the dollar as a store of value: This is not true, the dollar is a stable currency so it remains as it is, there's no value in storing the dollars. Countries only use the dollars as their national reserve currency and not because of it's value. The US is the world power and most of International transactions requires the use of the dollars.

(2) Scarcity of dollars: The dollar is not scarce but inflation have dealt with fiats generally not only the US dollars, even the Naira and other currency have lost their values as a result of inflation but the only way to fight this inflation is bitcoin since it's the actual store of value because it appreciates in price.

[nelson4lov]

Yeah, it sounds good in theory. That's the Bitcoin adoption that have been talked about over the years on the forum. Bitcoin isn't at that level of adoption yet but it's super close right now. Right now, most of the vendors and merchants still depend on dollars because it is based on a system that has worked for several decades and is still working although right now, it's on the verge of collapse.

[SatoPrincess]

A lot of individuals and household rely on the US dollar to perform various transactions. For trades, travels, international business transactions, and even as a store of value. It's no news that Nigeria is short on foreign exchange, as a result move to black market characterized by outrageous rates and charges. Here comes Bitcoin, with it, I can transfer money to any part of the world with ease, freelancing with ease, store the value of my money as against the devaluing naira. Surely the over reliance on the dollar is reduced. We just need someone in authority who's ready to think outside the box!

Where you get the idea say dollar scarce for naija abi no be same dollar politicians dey use for election campaigns a while back when CBN been make cash scarce. Normal people still dey open dom accounts so them fit save in usd so abeg how dollar take scarce?

[Rhow]

One problem that has even been disturbing the growth of the Nigerian economy and even the way that our local currency perform has been this uncontrollable over dependency on the dollar which doesn't occur in saner society which the government give importance to the growth and development of their economies, Bitcoin can be used in used in bringing the gap when it comes to making payments across boundaries but I don't think that it a solution to the current economic situation we are been face with.

Yes, I agree with you. I would blame the dollar as one of the reasons for this kind of inflation in our country's economy. Although the dollar is helping us meet our financial needs. But, it is because of the dollar that we have such a big inflation. We should not be overly dependent on the dollar and our economy should focus on development. If we still take effective measures, then I think our economy can be fine again.

[Salahmu]

A lot of individuals and household rely on the US dollar to perform various transactions. For trades, travels, international business transactions, and even as a store of value.

Bitcoin can do alot of things no doubt but however they cannot be use in some certain areas at the moment considering the circumstances so actually bitcoin could be use for trading but in some other ones you mentioned it could hardly been used for that, such as traveling and business transaction, you cannot go to the airport to book flights telling them you are paying with bitcoin when there was no such payment method or you cannot also book a ride and gotten to the destination you decided to pay in Bitcoin when the person do not accept that so actually there would always be a reciprocating measures among people before this could successful been used in alot of things.