Bitcoins refer to digital currency that is kept and exchanged electronically. It is a virtual currency, and its value is rising day by day. Some people consider this currency an investment, whereas others use it as a payment mechanism. Bitcoins are designed using cryptography, a way of protecting data and interactions. It includes the blockchain, a public ledger that helps record multiple transactions and data simultaneously. The blockchain contains all the information like date, time, code of exchange, medium of payment, and other information. It helps keep the data safe and free from hacking. There has been an increase in the use of bitcoin in Nigeria and other countries. The following are the impacts of bitcoin on the economy:
Increase in the revenues
Bitcoin has paved the way for people in Nigeria to come out of poverty and improve their standard of living. It has positively impacted the people of Nigeria, and the nation has become the third-largest trader of cryptocurrency in the world. It is because trading with bitcoin is cheaper as the intermediaries have been eliminated, resulting in more revenue.
Accountability and openness
Many still do not have bank accounts in Nigeria because of the fear of cyberattacks and fraud. In this digital world, this is a problem for businessmen and people. The benefit of crypto over a bank is that it is more secure, and people can exchange money according to their choice, having more control over their money. Blockchain technology allows the government and society to know what is going on. This results in people being accountable for their actions.
Growth in the economy
Cryptocurrency allows people to save and easily invest their money. These investments are safe and transparent. Security and safety become why people invest and create new assets, along with increasing financial literacy in the country. The cryptocurrency also offers the liquidity, helping Nigerians move their money around quickly.
Employment opportunities
There has been a significant increase in investments in cryptocurrency in many countries. This investment and payment have created great employment opportunities in the IT sector. The job involves developing blockchain specializations and improving their safety for common people to use. The value of freelancing work has increased, both part-time and full-time, as they offer a sound plan for investments and payments in cryptocurrencies.
Protection from inflation
The Nigerian economy is in a hyperinflation situation because of the depreciation of the naira, the country’s currency. Investments in cryptocurrency are a way of preserving wealth in Nigeria. Many people have invested in cryptocurrencies because they shield their money from the damaging effects of inflation.
Conclusion
The use of cryptocurrency and bitcoin is increasing around the world. Nigeria being part of the world, has been impacted by bitcoins. The inflation in the economy of Nigeria has pushed people to invest in cryptocurrency to preserve their wealth. The increase in bitcoin in Nigeria has also increased blockchain technology, which is now creating employment opportunities in the IT sector. With proper rules and regulations, bitcoin can help in the growth of the economy all over the world.