Crypto currency is a digital currency from block chain technology. It is a secure means of transaction cause it depends on cryptography. The control of additional unit is dependent on complex formula that have to be solve by miners. The first crypto currency that was introduced in 2009 was bitcoin. It was designed by an unknown man who is believed to be Satoshi Nakamoto. Presently one bitcoin is mined every four minutes which will become more difficult as the years goes by. There are currently thirteen million units of bitcoins in circulation and the total units will clock at twenty one million. This according to the algorithm will be at the end of 2140 years.
Crypto currency especially bitcoin became popular when Mavrodi Mondial Movement (MMM), a ponzi scheme, introduce it in the scheme. The Nigeria Government later last year decides to investigate the possible outcome of the use of such currency in the country as to how it will affect the economy. There are some new digital currencies around the world now.
Some countries aound the world have ban the use of cryptocurrencies while some others have been observant. Still other countries are about to or have even lauch their own type. But very few countries have allowed it in their country not as their national curency but have allowed individuals to trade with it at their own risk.
The main reasons why government are finding it difficult to accept this new means of transaction is that there is no third party when transaction is involve like a central bank. Will Nigerian Government accept this mode of transaction in the near future? It all depends on so many factors.
Nigeria Economy And Bitcoin
The government have found out that bitcoin have fulfill the definition of money which is ‘money must be few, hard to get and must be verifiable.’ To the government, since it is decentralize, they will lose control on the flow of money in circulation. This have been backed by the fact that it will encourage illegal transactions among drug lords and politicians. Since the transactions are done over the internet, two problems arise which is (1) non-technological savvy individuals like the old people will find it difficult to trade and (2) it is prone to hackers.
Bitcoin And Nigerians
Some years ago the civil war in Nigeria left thousands of Biafrans with only Biafran currency. When Biafra lost the war and their currency was rejected by the Nigerian Government they were left with nothing. In other to help out of the situation, the Nigerian Government gave all Biafrans twenty pounds each. This happened because the Central Bank of Nigeria (CBN) was the central controlling body. This kind of situation is removed with the use of digital currency since there is no central body. Transactions are fast and secure. Although the difficulty in obtaining foreign currency to buy it is still very low as at now and the cost of one bitcoin is subject to inflation. This is caused by some factors like high liquidity as supply is unstable