HOW NIGERIA'S INFLATION PROVES WHY BITCOIN WAS INVENTED

[Bitco55]

Everyday in Nigeria, prices of goods and services rise and the currency loses it's value. One can't help but think, wasn't this the problem BTC was created to solve? Inflation, the continuous increase in the price of goods and services over time is like a silent tax that eats the value of ones income. What 20k could buy even last year, 20k can't buy anymore. This happens cause the Central Bank of Nigeria, in charge of controlling money supply, prints out more money than the system can carry / support.

Unlike naira, Bitcoin has a fixed amount of 21 million and this amount can't be increased or reduced by any government or individual. Though, the inflation rate of our country is reducing now, in times when the inflation rate was really severe, people turned to Bitcoin as a store of value. Those who did preserved their wealth and we're the wise ones.

Inc conclusion, Bitcoin may not be replacing naira anytime soon, or any other currency in the world, but it serves as a template and a mirror showing exactly what money should be like, that is, limited, transparent and immune to political manipulation.

[Cryptoprincess101]

Inflation has eaten deep in most economy around the world not only in Nigeria and i want to tell you that for the fact that bitcoin is a hedge against inflation doesn't mean it will eradicate inflation but just that it will reduce to the minimal.

Inc conclusion, Bitcoin may not be replacing naira anytime soon, or any other currency in the world, but it serves as a template and a mirror showing exactly what money should be like, that is, limited, transparent and immune to political manipulation.

Bitcoin was never created to replace the naira or the fiats; it is an alternative currency so do not think that a day will come when we will only be using bitcoin without a fiat currency. The limited supply of bitcoin, the transparency of the blockchain and the decentralization is what makes it unique that is why you should hold enough of it in your portfolio.

[NurseHub]

I agree with you and I also created a thread with similar notion but we ended up arriving at different point of understanding, however, I think that I will disagree with you last statement where you mentioned immune to political manipulation, bitcoin can somehow seem to resist manipulation from governments but it sure isn't immune if it was then tariff war wouldn't have been affecting its price till date or force and immediately redirection on the market.

[CryptopreneurBrainboss]

In conclusion, Bitcoin may not be replacing naira anytime soon, or any other currency in the world, but it serves as a template and a mirror showing exactly what money should be like, that is, limited, transparent and immune to political manipulation.

But is Bitcoin really immune to political manipulation or even social manipulation? Think about it, just one tweet from Trump and the whole crypto market goes wild either crashing or pumping. Bitcoin is also receiving the impact of what world power can do to the market. In my opinion no currency can be immune to the affairs of the world because people will always react based in how they feel and that's what will determine if they're buying or selling any currency that's on the market for trading. What makes Bitcoin have some advantages is because it isn't limited to Nigeria but a global currency therefore the affairs affecting it is global and not just limited to one countries unlike fiats like Naira.

[Stepstowealth]

Though, the inflation rate of our country is reducing now, in times when the inflation rate was really severe, people turned to Bitcoin as a store of value. Those who did preserved their wealth and we're the wise ones.

Turning to bitcoin as a store of value only works on the long term basis, because if you only planned to shift your resources to bitcoin to avoid reduction in value due to inflation or as you say to preserve wealth, and you shifted all your resources, I say that you will be greatly affected if in situations where the value of bitcoin drops due to political and social manipulation. It is a huge risk to commit all your resources to your bitcoins, this is why you should mostly invest what you can loose. If you invest all your resources and Trump for example makes a negative statement about crypto or does something that forces the value of bitcoin  to drop massively, you will likely face a mental breakdown.

[Charles-Tim]

Inflation has eaten deep in most economy around the world not only in Nigeria and i want to tell you that for the fact that bitcoin is a hedge against inflation doesn't mean it will eradicate inflation but just that it will reduce to the minimal.

Bitcoin was not created to reduce inflation to minimal, there will always be inflation as the government are using it to favour themselves and not the citizens, but people have the option to buy assets that are store of value or an investment like bitcoin as a hedge against inflation.

[Ninja Primes]

Inflation has eaten deep in most economy around the world not only in Nigeria and i want to tell you that for the fact that bitcoin is a hedge against inflation doesn't mean it will eradicate inflation but just that it will reduce to the minimal.

Bitcoin was not created to reduce inflation to minimal, there will always be inflation as the government are using it to favour themselves and not the citizens, but people have the option to buy assets that are store of value or an investment like bitcoin as a hedge against inflation.

Yes, since inflation will never end, and this is why people should make the right decision to protect their money, so that their money can be saved from the effects of this inflation, and for this people can use their own strategies, like many people can buy gold, or buy land, but the greatest asset among these is Bitcoin, but there are many who do not know Bitcoin, now it is not possible for them to invest in Bitcoin, but those who know Bitcoin, they should definitely make the right decision and since they have a feeling about the possibilities of Bitcoin, so they should definitely make the right decision and buy Bitcoin, this bitcoin is the biggest hedge to fight inflation, and if you understand this, then definitely make the right decision.

Ninja~   

[Cryptoprincess101]

Inflation has eaten deep in most economy around the world not only in Nigeria and i want to tell you that for the fact that bitcoin is a hedge against inflation doesn't mean it will eradicate inflation but just that it will reduce to the minimal.

Bitcoin was not created to reduce inflation to minimal, there will always be inflation as the government are using it to favour themselves and not the citizens, but people have the option to buy assets that are store of value or an investment like bitcoin as a hedge against inflation.

Fair enough!
Let me just put it this way; it reduces inflation. Though, being a hedge against inflation is just as a result of its limited supply since it is fixed but looking at it from a macroeconomic level, it might not really control inflation due to the low adoption it has gotten so far, except when the adoption rate increases over time and a large percentage of the world population starts using it for day-to-day transactions.

Yes, since inflation will never end, and this is why people should make the right decision to protect their money, so that their money can be saved from the effects of this inflation, and for this people can use their own strategies, like many people can buy gold, or buy land, but the greatest asset among these is Bitcoin, but there are many who do not know Bitcoin, now it is not possible for them to invest in Bitcoin, but those who know Bitcoin, they should definitely make the right decision and since they have a feeling about the possibilities of Bitcoin, so they should definitely make the right decision and buy Bitcoin, this bitcoin is the biggest hedge to fight inflation, and if you understand this, then definitely make the right decision.

Ninja~   

You made a good reply but i just want to correct the area i highlighted, bitcoin is not the biggest hedge against inflation but the diversification of different valuable assets will help save your money from inflation. Just like you mentioned gold, land and even real estate business so imagine if you own investments in all these valuable assets including bitcoin, can inflation affect you anymore? NO...

[Princess Leah]

In conclusion, Bitcoin may not be replacing naira anytime soon, or any other currency in the world, but it serves as a template and a mirror showing exactly what money should be like, that is, limited, transparent and immune to political manipulation.

But is Bitcoin really immune to political manipulation or even social manipulation? Think about it, just one tweet from Trump and the whole crypto market goes wild either crashing or pumping. Bitcoin is also receiving the impact of what world power can do to the market. In my opinion no currency can be immune to the affairs of the world because people will always react based in how they feel and that's what will determine if they're buying or selling any currency that's on the market for trading. What makes Bitcoin have some advantages is because it isn't limited to Nigeria but a global currency therefore the affairs affecting it is global and not just limited to one countries unlike fiats like Naira.

In addition to what you've said I want to say that Bitcoin can't even be a quick fix to the devaluation of our fiat currency which further led to inflation, they should recall that it's a long-term investment opportunity and would only serve as a hedge to inflation in the future if the government buys it now and store as reserve, just like El Salvador did but our government is not very smart enough to clear their debt or stop taking unnecessary loans from the world bank and imf talk more of buying the reserve to help reduce inflation in the future, I know we as individuals have our own role to play concerning the nation buld8kg but where the government has failed it would be tough for the citizens  to help build the nation especially when the government is very corrupt.

 Anyways Bitcoin may be controlled by volatility but it is still manipulated by the government not only them but those who hold a large amount of it, we all saw the impact the last hike on China's tarrif by Trump and what it cause in the market, that alone is a prove that the market can be manipulated by some powerful entities in government and you're very correct that their actions could influence the demand or supply which Bitcoin relies on.

[Gozie51]

Everyday in Nigeria, prices of goods and services rise and the currency loses it's value. One can't help but think, wasn't this the problem BTC was created to solve? Inflation, the continuous increase in the price of goods and services over time is like a silent tax that eats the value of ones income. What 20k could buy even last year, 20k can't buy anymore. This happens cause the Central Bank of Nigeria, in charge of controlling money supply, prints out more money than the system can carry / support.

Maybe you still don't understand what it means when they say bitcoin is a hedge against inflation or that bitcoin can help you out of inflation and or not to feel the excruciating part of of inflation. This simply means if you keep your fiat in bitcoin then the possibility of it to appreciate in value is higher than if you kept it in fiat. Fiat is inflation driven because of the policies of the government and the banks.

For example you made reference of 20k last year not being able to have that same purchasing power this year. That is, not able to buy the same quantity and or quality of product this year. This is true and that is because of inflation but do you know if you kept that quantity of Bitcoin (as in 20k worth of bitcoin) last year to this year, you have not even the same value of what you would have bought this year but more value of it, even if not tripple of it this year despite the crunching effect of the inflation.

So it is about the bitcoin you hodl as individual not about the Bitcoin in circulation. If you want to understand it more then set aside 20k worth of Bitcoin from now till this time next year and also keep 20,000 naira till next year too and by next year when you convert the bitcoin to fiat, you will see how much increase you have.