A Non-Executive Director in United Capital Plc, Mr Emmanuel Nnorom of Vine Foods Limited 2 has purchased additional 1 million units of the firm’s shares worth N5.39 million.

This is according to a notification signed by the firm’s secretary, Leo Okafor and sent to the Nigerian Stock Exchange, as seen by Nairametrics.

The disclosure revealed that the transaction took place on the 25th of January, 2021, with the Director purchasing an additional 1 million units of the firm’s share at N5.39 per share, totalling N5, 390,000.

Nairametrics learnt that there have been increasing numbers of insider transactions recorded by the firm, especially in the last three months. For example, Nairametrics earlier reported that the CEO of the United Capital Plc, Mr Peter Ashade had purchased an additional 6 million units of the firm’s share in the last three months.

Underlying fundamentals

The surge in insider transactions might be attributable to the impressive growth in key financial metrics of United Capital Plc. For example, the firm had experienced a 25.90% rise in its gross revenue in its last reported financial statement – Q3, 2020.

Despite recording over 100% decline in other income earning components, the increase in gross earnings was jointly driven by an increase in Investment income, fees and commission income, net trading income and net interest margin.

As at the time of writing this report, Nairametrics learnt that the market capitalization of the firm has so far gained a total of N3.36 billion since the commencement of trading on the 4th of January, 2021. This is largely driven by an 11.34% increase in the share price of the firm.

In case you missed it: Nairametrics had earlier reported that Mr Emmanuel Nnorom purchased a cumulative of 1.755 million units of the firm’s share, spending a total of N7.99 million on the deal.

Cheers. Here’s to something we all know, maybe most of us but mostly, here’s to something some of us most likely want to deny; “Bitcoin has come to stay” and we must raise our glasses to the doggedness of all and sundry involved in the efforts to complement and consolidate the stability, acceptance, profitability, and growth of BTC world over.

In recent weeks, Bitcoin and holders have enjoyed over 8 percent increase in the prices of Bitcoin world over, justifying the decision to hold on to the digital currency and has, in turn, led to a spike in the acceptance, recognition, and investment of individuals and corporations in the digital currency. Going forward, with teeming interest in Bitcoin, it is imperative to educate enthusiasts and potential investors on and about the story so far and in tandem help inform better decisions as to the future of the ‘gold mine’.

On the surface, one of the many perks of BTC and/or cryptocurrency is the accessibility. Without any middlemen, government officials, monetary economists, and other intermediaries or regulators, such a system can operate. Essentially, Bitcoin is the first successful global peer-to-peer cash implementation that lets everyone, no matter who or where they are, store and exchange value with others.

However, the unregulated use of bitcoin itself and the possibility of leaving a holder legally unprotected should anything go wrong has been one of the major concerns in the global market. Secondly in the eventuality of a hard drive crash, or if a virus corrupts your data and subsequently corrupts the wallet file, Bitcoin held on such wallet will be essentially been “lost” with no way to recovering it. The coins in context will then be forever orphaned in the system, therefore, increasing the chance of bankruptcy for a wealthy Bitcoin investor.

Pros and cons of Bitcoin

Pros

• The most transparent financial system to date is Bitcoin. All over the planet, and where there is no banking system, you can make payments with Bitcoins 24/7.
• With Bitcoins, foreign money transfers can be quicker and cheaper than with conventional banking and services.
• Bitcoin is the only asset ever created that cannot be taken from you by force (if taken proper precautions). Often, BTC transactions are also not censorable, and no one can stop you from performing transactions.
• Bitcoin also has valuable business features, such as multi-signature authorization and accounting transparency. Multi-signature ensures that many individuals need to sign off on an invoice, which provides more security. And the very existence of a blockchain, where all transactions are public, strengthens a company’s transparency.
• Bitcoin is pseudonymous, and without any authentication or credit history, anyone can open their wallet through the internet. In under-banked regions and third world countries, it is particularly beneficial where most individuals are struggling to get access to capital.
• Bitcoins can be spent on a desktop device, cell phone, or debit card in the same way you spend conventional digital money.
• Bitcoins are deflationary, unlike fiat currencies, implying that their value is set to appreciate by default.
• The most portable asset ever produced is Bitcoin, which can be transmitted via satellite or even radio.
• Bitcoin has the most brand awareness, liquidity, the most integrated ecosystem, and most acceptance among numerous retailers and organizations compared to other cryptocurrencies.
• For small fee, regular retail transactions such as buying tea, groceries, or simply tipping someone online, the Lightning Network can be used for this.
• Bitcoin presents a programmable money principle that allows for more financial developments, such as “smart contracts.”
• By providing an alternative to people who mistrust their government, certain institutions, politicians, or simply believe in the power of decentralization, Bitcoin disrupts the monopoly of capital.

Cons

• When things go south, little or no regulatory oversight is needed.
• Despite attempts to allow offline Bitcoin transfers, the use of the currency still depends largely on the availability of the internet.
• As Bitcoin is still in progress, depending on mining efficiency and network congestion, the transaction speed and fees appear to differ.
• Converting Bitcoins to fiat requires payments that are often expensive.
• Bitcoins are not approved by many shops or service providers. The figure is rising, though.
• Bitcoin transactions are immutable, which means there’s no way to bring them back once the money leaves your wallet. While several reputation management tools are being created, the thing with Bitcoin is that there is no “buyer’s protection.” Conversely, since accepting BTC removes the risk of fraudulent chargebacks, it may help merchants.
• Many individuals are not prepared to assume full responsibility for their properties and are unable to safely handle their private keys. Beyond recovery, several private Bitcoin keys have been lost, thereby leading to Bitcoin’s deflation and value appreciation.
• A steep learning curve is given by learning all the latest ins and outs of the Bitcoin ecosystem. In most Bitcoin applications, the user interface is still not foolproof, and the network is not ready to support anyone in the world.
• Securing Bitcoin needs basic knowledge and understanding of cybersecurity. Although the network is practically unhackable, there are organizations and individuals that are trying to hack Bitcoin wallets.
• Bitcoin’s central philosophy goes against the most influential institutions, governments, politics, banks, regulators, and censorship, and before these players can tolerate or approve it, it is likely to face a lot of opposition.

The future we project

According to Coindesk, some economic analysts expect that a big shift in cryptography is coming in January 2021, as institutional capital enters the market. There is also the possibility of floating crypto on the Nasdaq, which will further give prestige as an alternative traditional currency that is powered by the blockchain. Some expect that a regulated trading platform is all that crypto needs.

Any of the restrictions that cryptocurrencies currently face, such as the fact that a computer crash may delete one’s digital fortune, or that a hacker may ransack a virtual vault, may be resolved in time through technological advances. What is more difficult to solve is the underlying paradox of cryptocurrencies the more common they become, the more regulated government scrutiny. They are likely to be drawn, eroding the essential premise of their life.

While the number of merchants embracing cryptocurrencies has risen gradually, they are still very much in the minority. They must first gain widespread acceptance among consumers for cryptocurrencies to become more widely used. However, except for the technologically adept, their relative difficulty compared to traditional currencies would probably discourage most individuals.

A cryptocurrency that aspires to be part of the mainstream financial system may have to follow widely divergent requirements. It will have to be mathematically complex (to deter fraud and hacker attacks) but easy to understand for customers; And maintain user anonymity without becoming a backdoor for tax evasion, money laundering, and other nefarious activities; decentralized yet with sufficient customer protections and security. Since these are enormous requirements to meet, the most common cryptocurrency will probably have attributes in a few years between highly regulated fiat currencies and the cryptocurrency of today? Although that possibility looks distant, there is little doubt that the success (or lack thereof) of Bitcoin in coping with the difficulties it faces as the leading cryptocurrency at present will decide the fortunes of other cryptocurrencies in the years ahead.

It might be wise to handle your ‘investment’ in the same way you would treat any other highly risky enterprise if you are considering investing in cryptocurrencies. In other words, realize that you run the risk of losing the bulk, if not all, of your investment. As previously mentioned, aside from what a buyer is willing to pay for it at a point in time, a cryptocurrency has no intrinsic value and have your share in the digital economy.

The Nigerian Stock Exchange continued today on a positive note, as the All-Share Index improved by 1.21% to close at 41,584.94 index points.

Consequently, Month-to-Date and Year-to-Date return increased to 3.24% as market capitalization stands at N21.494 trillion, having added N259 billion.

A total volume of 467 million units of shares, valued at N5.56 billion exchanged hands in 5,990 deals.

• Transnational Corporations (+0.93%) continued to dominate market activity in terms of volume and value at 45.9 million units and N50.5 million respectively.
• Similarly, the market breadth index was positive with 32 gainers against 19 losers.
• RTBRISCOE (+10.00%) led the gainer’s chart today, while JOHNHOLT (-10.00%) was the top loser.
• Sectoral indices closed mostly positive. The NSE Consumer Goods Index led the gainers with 0.54%. The Insurance and Industrial Indexes trailed by 0.40% and 0.25% respectively.
• On the flip side, the NSE Oli & Gas & Banking Indexes dipped by -5.31%  and -0.14%t respectively.

Top gainers

1. AIRTELAFRI up 7.60% to close at N920
2. FIDSON up 8.60% to close at N5.05
3. FLOURMILL up 6.25% to close at N34
4. WAPCO up 3.77% to close at N27.5
5. MTNN up 0.53% to close at N170.9

Top losers

1. SEPLAT down 9.26% to close at N490
2. CUTIX down 7.08% to close at N2.1
3. AFRIPRUD down 1.82% to close at N7
4. CADBURY down 1.54% to close at N9.6
5. ZENITHBANK down 0.94% to close at N26.25

Outlook

Nigerian stocks ended Tuesday’s trading session on an impressive note.

• The upside route followed investors’ interests in WAPCO, Flourmill, and Airtel Africa as their stocks advanced by 3.77 %, 6.25%, and 7.60% respectively.
• Nairametrics however, envisages cautious buying, amid improved market conditions in Nigeria’s financial market.