The term cryptocurrency has gained a lot of clout over the last two years, and understanding its value and usage in the eyes of the public has helped in increasing its spread. Initially, it sounded scary and unfamiliar just like during the early days of credit cards. In Nigeria for instance, many have enhanced their financial status from investing in cryptocurrency. To further explain, the cost of Bitcoin in Nigeria in 2011 was $1, barely eight years later in 2018; it was sold for more than $15,000. Although the price has come down to $8,000 in recent times, it is still very much high.
The term Bitcoin and Ether might not sound so familiar to those who are yet to tap into the benefits of the virtual currency but these are the most popular cryptocurrencies on Blockchain Technology. Since the birth of cryptocurrency over 8 years ago, Bitcoin has become the king of Crypto and has gone ahead to break several records. Blockchain Technology makes trading in Bitcoin achievable as well as possible. Blockchain Technology and modern algorithms have allowed cryptocurrency the capacity to satisfy its market. Very little or no transaction hitches have been experienced with the virtual currency. It has been dubbed the savior of the world’s economy and this is absolutely correct. Below is a list of very good reasons why and how Nigerians can benefit from cryptocurrency.
The digital nature of cryptocurrencies makes it impossible to be counterfeited. It cannot be stolen neither can it be arbitrarily reversed by a sender like in the credit card charge-backs. Cryptocurrencies are completely fraud-free. The chance that a vendor or merchant that handles your credit card might move more than the agreed amount always exists. Worse still, if you misplace your Nigerian credit card you are very likely to lose all the contents of your account but the reverse is the case with virtual currency which secures your money. Others can only get what you have agreed to give.
2. Identity theft
Identity theft is very much possible with credit cards because the instant you give out your card to a vendor, he already has access to your full credit line even though the transaction may be for a minor amount. In addition to your credit line, he also has access to any other information on your card if he wishes to get it. The operation of a credit card is based on a “pull” basis. Here the vendor is the initiator of payment and he also pulls the agreed amount from your account. On the other hand, cryptocurrencies make use of a push mechanism which affords the cryptocurrency holder the opportunity to send out only the exact amount he wants to send without additional information.
3. Immediate settlement
Transactions that are completed through the banks are likely to take a while depending on the amount and distance. In Nigeria, when it comes to acquiring things like real estate, it entails a good number of third parties like notary, lawyers and agents who create delays in payments. In more ways than one, cryptocurrency and blockchain act like a huge property rights database. Bitcoin contracts can be designed in many possible ways. It can reference external facts, add or eliminate third-party approvals as well as setting a future date for the completion of the transaction. All these are achievable just for a little fraction of the time and money it will take to complete similar transactions through traditional asset transfers.
4. Absolute accessibility
Millions of people exist who have zero access to financial institutions. The excess documentation required for the opening of an ordinary bank account has discouraged many. It would appear that people in this category are doomed to live their lives without the benefits that can be derived from banking services like receiving donations or payments from abroad. On the other hand, it has been observed that such people have access to the internet through their mobile devices. These types of people are the ones that are primed for the crypto market. All you need is a crypto wallet and the sole requirement is a device that can give you access to the internet. People who own Crypto wallets have unrestricted access to the world of banking which gives them inroads to unending opportunities.
5. Affordable fees
Transaction fees are conspicuously absent from cryptocurrency transactions because for now, the miners get their compensation from the network. Many expect that crypto holders will employ the services of third parties who are likely to charge some transaction fees, but this is not so. Cryptocurrency transactions are absolutely free for now.
6. You own your money
For people that have savings, the majority of their wealth is deposited with the financial institutions. The 2008 global financial crisis has proved to the world that the banks are not always safe. Cryptocurrency gives you the chance to always be in possession of all your money with guaranteed safety.
7. Potential gain
Compared to other means of exchange, the cryptocurrency market is young. The entire world of crypto is still in the infancy stage and the adoption has barely started. Once awareness increases, the stigma associated with the virtual currency will fall off and consequently, more investment will be attracted into the Crypto market cap. The higher social value will always attract greater investments.
Inherently, cryptocurrencies are inflation-proof. This is different from fiat currencies which are designed to increase with inflation by 2% annually. Cryptos are limited and thus cannot be printed out like the fiat currency. The value of your savings will definitely not go down due to inflation.
9. Improved coins
Many years ago, Bitcoin was the only cryptocurrency on blockchain technology, these days are well and truly over. Other currencies like Ethereum, Monero, Ripple, Stellar and Cardano have come into the cryptocurrency framework with even more improved features which make them better than Bitcoin. As more creators perfect their ideas, improved coins will continue to roll out and each of them is a very good potential investment.