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Why Nigerians’ are attracted to bitcoin

Recent data shows that Africa’s biggest economy, Nigeria, is leading other African countries in cryptocurrency usage. 

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Many countries around the globe, including Nigeria, have embraced cryptocurrencies with open hands. Recent data shows that Africa’s biggest economy, Nigeria, is leading other African countries in cryptocurrency usage.

Bitcoin started gaining traction in Nigeria after the infamous MMM Ponzi scheme of 2016, which promised a 30% monthly return on investment, both in fiat and Bitcoin. Many got scammed, and some found themselves in unimaginable debt after investing in MMM and other Ponzi and pyramid schemes that followed.

One would expect that such a horrible first experience would make Nigerians hate cryptocurrency forever; the reverse was the case as the interest towards Bitcoin in Nigeria continues to surge.

Binance Research, an arm of Binance crypto exchange also revealed in 2019 that interest in Bitcoin shifted from the Western Hemisphere to the Eastern Hemisphere and surprisingly, in this case, Africa where Nigeria also ranks top.

[READ MORE: Bitcoin hits 12-month low- Luno)

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Another report published last year by The Chartered Institute of Bankers of Nigeria (CIBN), also revealed that Nigeria was one of the African countries with the highest number of new users of Bitcoin in 2018, despite several warnings from the Central Bank of Nigeria that Bitcoin is not a legal tender in the country.

In addition, Nigeria’s digital economy is on the rise. With the increased poverty level, more youths and adults are making an entrance into the global digital economy by providing digital services as freelancers

Consequently, Nigerians have troubles receiving payments from their foreign clients. They are not allowed to use even the most famous American based Paypal, and other options like Money Gram and TransferWise are not only expensive and slow but also have unflexible verification system.

READ ALSO: Africans using mobile payments to curb COVID-19

Bitcoin, however, offers them a flexible, almost instant and cheaper means of receiving cross border payment after rendering their services to clients and companies.

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The many economic problems in Nigeria, including inflation and the devaluation of the naira, have made the country’s fiat currency a poor store of value, pushing some to store their value in a deflationary currency like Bitcoin which can protect its owners from excess money printing from central authorities and other uncertainty

 

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Olumide Adesina is a French-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. A member of the Chartered Financial Analyst Society. Financial Market; Yale University, Behavioral Finance; Duke University. You can follow Olumide on twitter @tokunboadesina or email [email protected]

2 Comments

2 Comments

  1. Anonymous

    March 29, 2020 at 9:10 pm

    This is good, cryptocurrency is the future of money. I can train you on how to go about it.

  2. Anonymous

    March 31, 2020 at 9:16 pm

    This is good

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Hospitality & Travel

US gives reasons it warned citizens against travelling to Nigeria, lists 12 high risk states

The US government has issued a level 3 Travel Health Notice for Nigeria due to COVID-19.

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Donald Trump, What does Iran’s war with America mean for Africa?, US to stop issuing visa for Birth Tourism, Trump Travel Ban List: Why Nigeria should be excluded  , US spends over $5b in health assistance to Nigeria in 20 years, gives $32.8m for covid-19, Oil Is Back

The United State Government has advised its citizens against travelling to Nigeria due to the Coronavirus pandemic, terrorism, civil unrest, kidnapping, widespread inter-communal violence, and others.

This warning is contained in a travel advisory statement that was obtained from the United State Department of State website.

The statement also disclosed that the Centre for Disease Control and Prevention (CDC) had issued a level 3 Travel Health Notice for Nigeria due to the Coronavirus pandemic. Also, some parts of the country have increased risk.

“Reconsider travel to Nigeria due to Covid-19. Reconsider travel to Nigeria due to crime, terrorism, civil unrest, kidnapping and maritime crime. Some areas have increased risk.’

‘’Do not travel to; Borno and Yobe States and Northern Adamawa State due to terrorism; Adamawa, Bauchi, Borno, Gombe, Kaduna, Kano and Yobe States due to kidnapping; Coastal areas of Akwa Ibom, Bayelsa, Cross Rivers, Delta and Rivers States (with the exception of Port Harcourt) due to crime, civil unrest, kidnapping and maritime crime,’’ the statement said.

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It stated that violent crimes such as armed robbery, assault, carjacking, kidnapping, and rape, have become common throughout the country. As such, US citizens were advised to exercise extreme caution throughout the country due to the threat of indiscriminate violence.

“Terrorists continue plotting and carrying out attacks in Nigeria, especially in the Northeast. Terrorists may attack with little or no warning, targeting shopping centres, malls, markets, hotels, places of worship, restaurants, bars, schools, government installations, transportation hubs, and other places where crowds gather.

“Sporadic violence occurs between communities of farmers and herders in rural areas.’

The US government acknowledged the fact that it has limited ability to provide emergency services to US citizens in many parts of Nigeria due to the security conditions.

Going further it stated, “Do not travel to Borno and Yobe States and Nothern Adamawa. Terrorist groups based in the Northeast target churches, schools, mosques, government installations, educational institutions and entertainment venues. Approximately two million Nigerians have been displaced as a result of the violence in Northeast Nigeria.

“Do not travel to Adamawa, Bauchi, Borno, Gombe, Kaduna, Kano and Yobe States. The security situation in Northwest and Northeast Nigeria is fluid and unpredictable, particularly in the states listed above due to widespread inter-communal violence and kidnapping.

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“Do not travel to the coastal areas of Akwa Ibom, Bayelsa, Cross Rivers, Delta and Rivers States (with the exception of Port Harcourt). Crime is rampant throughout Southern Nigeria, and there is a heightened risk of kidnapping and maritime crime, along with violent civil unrest and attacks against expatriate oil workers and facilities.’’

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Energy

World’s largest oil company to pay $75 billion annual dividend, despite plunge in profits

Saudi Aramco is the national energy company of Saudi Arabia.

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oil company, Just copy Saudi Aramco

The world’s largest oil company, Saudi Aramco reported a 73% drop in profit Q2,2020 profit and still kept its plans to pay $75 billion in annual dividends in a report credited to Bloomberg News

Saudi Aramco reported a plunge in profits for Q2,2020 of 24.6 billion riyals compared to 92.6 billion riyals recorded in the same corresponding year.

Aramco will pay a Q2,2020 dividend of $18.75 billion, most of it to the government of Saudi Arabia, the company’s major shareholder.

READ MORE: Apple becomes world’s largest public listed company, valued at $1.82 trillion

The plunge in profit was due mainly to “the impact of lower crude oil prices and declining refining and chemical margins,” Aramco said in the statement to the Saudi stock exchange.

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“Strong headwinds from reduced demand and lower oil prices are reflected in our second-quarter results,” said Chief Executive Officer Amin Nasser.

“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies.”

READ ALSO: Shoprite’s owners to leave Nigeria after 15 years

Quick fact; Saudi Aramco is the national energy company of Saudi Arabia. It produces five grades of crude oil and natural gas liquids.

It also produces refined energy products that include liquefied petroleum gas, ethanol, naphtha,  and other products.

It exports about 75% of its crude oil to foreign markets, most often with its oil tankers. Saudi Aramco has access to crude oil reserves of about 260 billion barrels, the largest in the world.

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READ ALSO: Nigeria’s Petroleum minister and Saudi Aramco discuss investment options

OPEC’s largest oil exporter, Saudi Arabia has been hit hard by global economic restrictions aimed at curbing the spread of COVID-19.

The Saudis make most of its revenue from crude oil, which has dropped 33% in value this year.

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Tech News

Twitter shows interest in buying TikTok

TikTok has come under fire from US lawmakers over national security concerns surrounding data collection.

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Twitter shows interest in buying TikTok, Twitter warns political figures to abstain from fake, misleading statements  

Twitter has now reached out to TikTok owner, ByteDance, showing interest in buying the US operations of the video-sharing app, private sources familiar with the matter told Reuters.

It, however, looks like a herculean task for Twitter in outbidding Microsoft, and concluding the megadeal deal in 45 days, as directed by US President, Donald Trump.

READ ALSO: Facebook is considering paying media outlets for news tab

The odds against Twitter:

Twitter has a market capitalization of around $30 billion, almost as much as the same valuation of TikTok’s US operation. What this means, therefore, is that Twitter will need to raise additional funds before the deal could see the light of day.

“Twitter will have a hard time putting together enough financing to acquire even the U.S. operations of TikTok. It doesn’t have enough borrowing capacity,” said Erik Gordon, a professor at the University of Michigan.

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“If it (Twitter) tries to put together an investor group, the terms will be tough. Twitter’s own shareholders might prefer that management focus on its existing business,” he added.

READ MORE: Tiktok’s In-App revenue surges amid lockdown

However, one of Twitter’s major shareholders, private equity firm Silver Lake, is interested in supporting Twitter in part for the required funds needed to pull the deal through, one of the sources to Reuters added.

“Twitter has also privately made a case that its bid would face less regulatory scrutiny than Microsoft’s, and will not face any pressure from China given that it is not active in that country,” the sources said.

ByteDance, Twitter, and TikTok declined to comment.

TikTok has come under fire from US lawmakers over national security concerns surrounding data collection.

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Some days ago, Nairametrics reported about Microsoft’s offer to acquire TikTok’s U.S operation, following the recent escalation of President Trump’s attacks on TikTok and other Chinese tech firms.

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