There are a few things less annoying than hearing the same word repeatedly and being unable to make sense. That’s how it often feels for most people when it comes to cryptocurrency. People talk about how it is the next big thing or how it is the future.
Then when you attempt to understand what it is but keep seeing big sounding terms that gets you confused or disinterested. You are probably saying to yourself, this is not rocket science why does it have to be so complicated?
We have written these 7 things about cryptocurrencies you should pay attention to amidst all the jargon.
Not one person or institution controls it. Cryptocurrencies like Bitcoin, Etherum and Litecoin removed the control of currency regulation from one person or organisation to a group of people who are anonymous. Eliminating cases on a Central Bank printing notes at the whim of a president. The creation of cryptocurrencies are controlled by people called miners, who required to solve a complex algorithm using high-powered systems before they can create a single cryptocurrency. Some cryptocurrencies have a maximum number that will ever be created. Bitcoin, for instance, will only ever have 21 million in circulation.
Cryptocurrency makes sending money faster. Using the existing system it could take 2 or 3 days to send value (money) from say Ghana to Finland, with cryptocurrency the time to send money is cut to 30 minutes or less. This eliminates inefficiencies and reduces wait times.
The way to find out if a transaction (send or receiving money) has been processed is via your bank. Cryptocurrency makes it possible for you to track and view the details of every transaction, eliminating the bank. With cryptocurrency, anyone can verify if a transaction has been completed. All you require is the transaction ID (a series of unique numbers generated for each transaction).
Think of cryptocurrency as cash, when you give someone cash you can’t get it back unless they give it back to you. Cryptocurrency works in the same way. This eliminates incidences of charge-backs i.e. a user paying for an item, disputing the transaction despite getting the item, getting the money they paid back and the merchant/business bearing the loss.
Cryptocurrency has value. Meaning you can pay for products and services with it, just like you can use dollars or naira. Imagine travelling the world and not bothering about changing to the local currency, if your debit card will work or if fear you will exhaust your spending limit.
While the number of businesses that accept cryptocurrency is still in the minority. Startups like Fliqpay are looking to close the gap by making it easy for businesses to accept cryptocurrencies as payment.
Just like the internet has eliminated communication barriers, digital currency is doing the same for finance. With cryptocurrency, no country is unreachable or too far away for you to do business with or send money to in less time and less than a quarter of the current transaction cost. Cryptocurrency is the native currency of a borderless digital world.
The price of cryptocurrencies fluctuates often. However, lies the opportunity for some people. Buy when the price is low and sell when the prices are high. In the same way, it works for people who actively trade forex and stocks. Knowing when to do this requires understanding the fundamentals of each cryptocurrency. You can also read this article on how to invest in cryptocurrency if you have a low-risk appetite. At the basic level cryptocurrency as an investment asset class works in the same way that stocks or forex do, buy low, sell high or hold.
This content is for educational purposes only. It should not be considered as financial advice. You should consult your financial advisor before deciding to store, buy or sell digital currencies.
This article is in partnership with Quidax. Quidax is a European based cryptocurrency exchange with a focus on Africa. We provide a seamless platform for users to send, receive, buy and sell cryptocurrencies using their local currencies.
COVID-19 Update in Nigeria
On the 22nd of September 2020, 176 new confirmed cases were recorded in Nigeria.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 57,613 confirmed cases.
On the 22nd of September 2020, 176 new confirmed cases were recorded in Nigeria, having carried out a total daily test of 3,177 samples across the country.
To date, 57,613 cases have been confirmed, 48,836 cases have been discharged and 1,100 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 484,051 tests have been carried out as of September 22nd, 2020 compared to 480,874 tests a day earlier.
COVID-19 Case Updates- 22nd September 2020,
- Total Number of Cases – 57,613
- Total Number Discharged – 48,836
- Total Deaths – 1,100
- Total Tests Carried out – 484,051
According to the NCDC, the 176 new cases were reported from 14 states- Lagos (73), Plateau (50), FCT (17), Rivers (8), Ondo (6), Niger (5), Ogun (5), Edo (3), Kaduna (3), Oyo (2), Bauchi (1), Bayelsa (1), Delta (1), Nasarawa (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,055, followed by Abuja (5,583), Plateau (3,304), Oyo (3,233), Edo (2,615), Kaduna (2,359), Rivers (2,263), Delta (1,800), Ogun (1,772), Kano (1,734), Ondo (1,606), Enugu (1,285), Ebonyi (1,038), Kwara (1,025), Abia (881), Katsina (848), Gombe (839), Osun (817), Borno (741), and Bauchi (692).
Imo State has recorded 562 cases, Benue (473), Nasarawa (449), Bayelsa (395), Jigawa (322), Ekiti (317), Akwa Ibom (288), Niger (259), Adamawa (234), Anambra (232), Sokoto (161), Taraba (95), Kebbi (93), Cross River (85), Zamfara (78), Yobe (75), while Kogi state has recorded 5 cases only.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
FG needs to focus on business environment reforms – Sanusi
While speaking at the Kadinvest 5.0 Summit in Kaduna, the former CBN Governor gave salient suggestions to revamping the economy.
Former CBN Governor, HH Muhammadu Sanusi II has said the Nigerian government needs to focus on reforms that enable a better business environment and also called for economic diversification through maximizing technology as means to generate revenue away from crude oil.
Muhammadu Sanusi II disclosed this at the Kadinvest 5.0 Summit in Kaduna on Tuesday morning. Sanusi said the Nigerian government’s role in the economy should be small, both in absolute and relative terms. Sanusi cited Nigeria’s GDP per capita and tax revenue per capita, at $2,400 and $75 respectively, while development spending is just $36 compared to Kenya at $280 tax revenue per capita, and development spending of $280, despite having 90% of Nigeria’s GDP per capita at $2,151.
“Government needs to multiply its tax revenue, the government needs to spend on business environment reforms,” he said.
(READ MORE: Can Agriculture replace Oil in Nigeria?)
Solutions for Nigeria:
He said that the diversification made colonial Nigeria an economic success, based on the trading sector and the diversity of Nigeria’s export base, including palm oil, groundnuts, cocoa, tin, hides and cotton, and others. He added that the diversity of export meant Nigeria was less vulnerable to terms of trade shocks driven by one export in particular.
“Nigeria has suffered boom and burst periods due to oil valuations. It affects us in direct and personal ways. The government needs to understand the importance of wrong and adverse economic decisions on the human being,” he said.
Sanusi cited inflation numbers, saying Nigeria ignored inflation numbers of 2%, instead of breaking down the CPI and seeing how it affects millions of people who spend on food from minimum wages and how a 2% inflation growth wipes out earnings.
He compared Nigeria’s growth in the past 40 years with countries similar to countries like Malaysia. He added that Malaysia’s export base has been diversified from commodities to manufactured goods in the past 30 years.
By 1979, Malaysia’s top 2 exports were Crude Rubber and Cork and Wood. By the year 2000, Malaysia’s top 2 exports were Electrical Machinery and Office machines/Automated Data Processing equipment. Malaysia’s GDP per capita grew in the same period from $41 to $4,045. Compared to Nigeria’s GDP per capita, which increased from $345- $2,655 from 1985-2015, but failed to diversify export base as Crude Oil was Nigeria’s top export for the period.
“We were growing, but we did not diversify and that explains the huge level of poverty. It also explains the vulnerability of the economy to shocks,” he said.
Sanusi added that the failure to diversify explains the relativity of Nigeria’s slow pace, compared to Nigeria’s growth for the same period.“We have not moved in all these years. This is the difference between us and Asia, they moved!”
(READ MORE: Sanusi gets another major appointment)
On growth and structural change:
Sanusi made a case for a change of mindset with technology adaptation. He added that the wide usage of smartphones does not mean Nigeria has leapfrogged development, as we are not a producer of technology but primarily, a consumer.
He added that Nigeria is yet to leverage on the investments in the telecoms sector. “Infrastructure in Africa has become increasingly decoupled from tech training. Someone who uses a smartphone to produce a Nollywood movie is producing! We need to invest in human capital to boost technology innovation, the smartphone is a ticket to wealth… Every excuse Nigeria has to not grow, Indonesia and Malaysia had. We need to move away from a consuming attitude( with technology) to production,”
On Power generation for productivity:
“In a low-income environment, income elasticity is far more important than price elasticity. People would pay for electricity if they could use it to earn,” he said. “Look at electricity as an economic resource, look at how much you could make. There is a difference between not earning a thing and earning something.”
He cited how China focuses on two major metrics, which are; the number of employed and the number of those with access to electricity, citing the per capita contribution of electricity to production needed to move people away from poverty.
He encouraged skilled jobs that leverage technology, which would enable growth and also remove the pressure of Oil money on the states.
“Youths need an environment that has been created to give them skills. We need to invest in broadband as an economic resource,” he said citing the importance of skill transfers in developing broadband infrastructure.
On patterns for structural changes:
Sanusi said East Asia has moved from agriculture to manufacturing and later services, majorly from the informal to the formal sector. However, in Nigeria, the bulk of a similar change has been in the informal sector.
“Manufacturing GDP in Africa has fallen from 14% in 1990 to 10.1% today. Formal job creation has been modest. This is partly because of a mistaken view that Africa can simply leapfrog manufacturing to become a service-based economy. We have declining activity, while the rest of the world has increased activity”.
He added that an enlightened industrial policy will translate to meaningful job creation. He concluded that Nigeria needs to link infrastructure development to economic growth. “You have to make sure your projects are linked, you don’t just build a road here, a rail line there, an airport there without knowing how there are going to translate into an economy.”
He also mentioned that Nigeria’s Public Debt has risen, and due to high inflation he cannot see how the CBN can keep expanding its balance sheet. He urged the FG to spend more time creating the environment through reforms that will attract the investments while also fixing the balance sheet.
NLC insists nationwide strike, protest to go ahead from September 28
The NLC has set Monday, September 28, 2020, as the date for it’s proposed strike.
The Nigeria Labour Congress (NLC) has insisted on going ahead with its earlier planned strike and protest, with effect from September 28, 2020, following the failure of the Federal Government to reverse the increases in electricity tariff and fuel price.
According to a monitored media report, this disclosure was made by the NLC President, Ayuba Wabba, after the National Executive Council meeting of the labour organization in Abuja.
While restating that the proposed strike action by the organized labour would still go ahead next week, he also disclosed that the decision was unanimously taken by the chairmen of the 36 states and FCT chapters of the NLC.
This is coming as the Trade Union Congress of Nigeria (TUC), extended its 7 day strike notice to September 28, to tally with NLC’s deadline for a united labour action against the increase in electricity tariff and petrol pump price.
While faulting the timing of the increase, the NEC at a meeting held at Labour House Abuja, directed the councils at 36 NLC states and Abuja to intensify mobilization of workers and other Nigerians.
Ayuba Wabba, advised the federal government to, in the interest of industrial peace and social order, listen to cries of workers and other suffering Nigerians and rescind the increases, warning that failure to meet the demands would make the planned strike and mass protest inevitable.
He said, “The National Executive Council of the Nigeria Labour Congress comprising members of the National Administrative Council, President and General Secretary of members of the affiliate unions and our state council chairpersons and secretaries of the 36 states and FCT met today (yesterday) and resolved as follows: NEC resolved to reject in its entirety the issue of hike in electricity tariffs by almost 100% as well as the fuel price increase in the name of full deregulation.’’
‘’This decision is premised on the fact that these twin decisions alongside other decisions of government including the increase of VAT by 7.5%, numerous charges being charged by commercial banks on depositors without any explanations will further impoverish Nigerian workers and citizens, including their families.
“Therefore, this increase, coming in the midst of the COVID-19 pandemic, is not only ill-timed, but it is also counterproductive. NEC also observed that the privatization of the electricity sub-sector seven years down the line has not yielded any positive result. Whereas, the entire privatization process, the entire sector was sold at about N400 billion, we are also surprised that government within the last four years injected N1.5 trillion over and above the amount that accrued from this important asset.’’