How much BTC could 1m NGN buy from 2020 to 2026?

[Comeacross]

We normally talk about BTC as a hedge against inflation. So what does that actually look like for someone in Nigeria with naira losing it value on a steady? Walk with me as I compare how many BTC 1 million naira could buy from 2020 to 2026. I use multiple sources for price comparison but coinmarketcap and CBN official NGN/USD rate stand out. For clarity, price are estimated from the end of the year.

Year 2020
BTC Price was $29,000
NGN/USD rate 360/1
With 1 million naira, you could get 0.09 BTC

Year 2021
BTC Price was $46,000
NGN/USD rate 400/1
With 1 million naira, you could get 0.05 BTC

Year 2022
BTC Price was $16,500
NGN/USD rate 420/1
With 1 million naira, you could get 0.1 BTC

Year 2023
BTC Price was $42,000
NGN/USD rate 700/1
With 1 million naira, you could get 0.03 BTC

Year 2024
BTC Price was $103,000
NGN/USD rate 1300/1
With 1 million naira, you could get 0.008 BTC

Year 2025
BTC Price was $87,000
NGN/USD rate 1500/1
With 1 million naira, you could get 0.006 BTC

Year 2026
BTC Price so far $60,000
NGN/USD rate 1370/1
With 1 million naira, you win get 0.008

You see how naira depreciate right? For instance 1 million naira bought 0.1 BTC in 2022 but only 0.008 BTC in 2026. Even if we want to argue that BTC Price in USD is up, 1 million naira could not buy you the quantity of bag of rice it could buy in the previous years.

In those years, 1 million naira could get you nearly 1/10 of a whole coin and if you convert it to NGN, that's tens of millions.

This is not a financial advice but just to see how well BTC can hedge against inflation. All observations and corrections are welcome.

[Sticky Bomb]

This further demonstrates how bitcoin is a store of value and a good investment prospect, especially when we go long-term in it.

Still from your example, if a person bought 0.1 BTC at #1million in 2022, if he was holding up until the last bull run when the price touched $120k, he would've had $12k worth of bitcoin which should be equivalent to around 15-16 million as at the exchange rate then, his funds only appreciated instead of depreciating and was inflation proof which is one of the benefits of investing into bitcoin.

If such a person still holds until the next bull run, he might make up to $20k if the prices gets to $200k.

[Ambatman]

You can just measure how much inflation has eaten our currency from here https://inflationglobal.com/en/
The US complain about Inflation when our is like a king.
If you convert the value of Naira to what the dollar was 2020
You would realise that in the short run
Bitcoin hasn't risen much
That's why Bitcoin hedge and appreciation is usually from the lens of long term

[Mate2237]

Nice explanation, from what you have explained to us in your thread, there are basically two very important lessons that we all should learn and get. And that is one the need to think about long term investment because the rate of inflation has made it in such a way that, the Naira keeps depreciating in value which is extra cost for us Nigerians when ever we are to think about investing. Because by 2020 the amount of Bitcoin which, you wound have use a million dollars to get when compared to now will be much higher.



Secondly is the fact that Bitcoin rewards long term investment plan, and this is evident because if one has investment one million worth of Bitcoin back then, and kept on hold till now there would have been a significant amount of profit that should have been made by now.

[Cryptomultiplier]

Nice explanation, from what you have been explained to us in your thread, there are basically two very important lessons that we all should learn and get. And that is one the need to think about long term investment because the rate of inflation has made it in such a way that, the Naira keeps depreciating in value which is extra cost for us Nigerians when ever we are to think about investing. Because by 2020 the amount of Bitcoin which, you wound have use a million dollars to get when compared to now will be much higher.



Secondly is the fact that Bitcoin rewards long term investment plan, and this is evident because if one has investment one million worth of Bitcoin back then, and kept on hold till now there would have been a significant amount of profit that should have been made by now.

The duration of a long term investment is what matters because Bitcoin doesn't yield much returns over a short term as compared to almost a decade of investment in it.

The best decision however remains to start investing now if you are still thinking about it,  because saving money in Naira in the bank these days comes with so much charges that at the end of the day the money is worth nothing with inflation in a steady grind.

Many of us shouldn't wait till we have 1 million Naira before we start investing by DCA strategy, because the price we see today might be cheaper than it was yesterday and that is clear with the illustration of prices from '20 till date.

[Churchillvv]

That’s the benefit of bitcoin holding, a Nigerian who had bitcoin since 2010 till date I don’t know the exact number of bitcoin he had but he still holds till today according to a podcast I was listening to such a person understand the need to endure The Who bitcoin struggle but however it’s very critical and never easy to hold such length, however, in today we got the opportunity to make the imaginary money if we had invested earlier. From this nobody needs to preach to anybody the benefit of bitcoin holding anymore even the blind can see it.

[adultcrypto]

This analysis should be taken as an eye opener by everyone because it explains why we should invest and hold bitcoin and not fiat that seems to be doomed for inflation. Bitcoin have made giant strides against fiat over the years and it will be do more in times to come especially as bitcoin is witnessing inflows from big financial institutions. The only thing that we should do now is to buy more and hold because in future, bitcoin will get bigger than it is now and those who held will be richly rewarded.

[Mate2237]

Nice explanation, from what you have been explained to us in your thread, there are basically two very important lessons that we all should learn and get. And that is one the need to think about long term investment because the rate of inflation has made it in such a way that, the Naira keeps depreciating in value which is extra cost for us Nigerians when ever we are to think about investing. Because by 2020 the amount of Bitcoin which, you wound have use a million dollars to get when compared to now will be much higher.



Secondly is the fact that Bitcoin rewards long term investment plan, and this is evident because if one has investment one million worth of Bitcoin back then, and kept on hold till now there would have been a significant amount of profit that should have been made by now.

The duration of a long term investment is what matters because Bitcoin doesn't yield much returns over a short term as compared to almost a decade of investment in it.

The best decision however remains to start investing now if you are still thinking about it,  because saving money in Naira in the bank these days comes with so much charges that at the end of the day the money is worth nothing with inflation in a steady grind.

Many of us shouldn't wait till we have 1 million Naira before we start investing by DCA strategy, because the price we see today might be cheaper than it was yesterday and that is clear with the illustration of prices from '20 till date.

That is true the time frame used in investing in Bitcoin matters a lot. For anyone who is into Bitcoin is to maximize a good profit.Bitcoin work in such a way that it only rewards based on a long term indurance because, Bitcoin as an asset is not one that is straight forward in terms of it's price prediction. Due to it volatile nature Bitcoin only gets profitable when Left for a long time, so it's expected that investors in Bitcoin should not be too concerned about initial profit.




Talking about saving money in the bank, that is a old story because since the introduction of Bitcoin into the Nigerian market. Many Nigerians who has been informed about Bitcoin has turn to Bitcoin as their source of savings money. This is because many has realized that saving money in Bitcoin is more economical when compared to the every day bank.

[Orpichukwu]

This analysis should be taken as an eye opener by everyone because it explains why we should invest and hold bitcoin and not fiat that seems to be doomed for inflation. Bitcoin have made giant strides against fiat over the years and it will be do more in times to come especially as bitcoin is witnessing inflows from big financial institutions. The only thing that we should do now is to buy more and hold because in future, bitcoin will get bigger than it is now and those who held will be richly rewarded.

The future of Bitcoin is indeed bright, and this analysis also reminds me of a meme which was flying around some years back comparing how much an iPhone cost in past years and how much Bitcoin cost back then, where someone who made the financial decision of investing in Bitcoin over those years rather than acquiring that luxury gadget could have been able to be counting his profits in numbers, while the same gadget has devalued over time.

[Abu-Naim]

This analysis should be taken as an eye opener by everyone because it explains why we should invest and hold bitcoin and not fiat that seems to be doomed for inflation. Bitcoin have made giant strides against fiat over the years and it will be do more in times to come especially as bitcoin is witnessing inflows from big financial institutions. The only thing that we should do now is to buy more and hold because in future, bitcoin will get bigger than it is now and those who held will be richly rewarded.

Exactly, the annoying part is that even that same 1 million naira of now is just like 500k of before in terms of value due to how inflation has affected the fiat currency; this is enough to tell us that Bitcoin investment is far better than holding fiat currency and it stores value.

This analysis by the OP is an eye opener, I hope we make use of it before it will be two late because if another year comes now and maybe the price of Bitcoin goes up, the amount of Bitcoin 1 million can buy will be significantly lower.