In a world where technology relentlessly challenges the limit of innovation, crypto currency emerges as a possibility to explorative power in the digital realm; disrupting traditional banking systems and trailing above the risk of inflation and devaluation that often threaten fiat currencies like the naira.
Crypto currencies are digital or virtual form of currencies which are not insured by the government. Hence, If you stored your crypto currency in a digital wallet provided by a platform or company, and the platform fails, is shut down or gets hacked, the government may not be able to step and help get your money back as it would have done if your money was stored in a bank or credit union. However, these currencies were born from the brilliant fusion of cryptography and decentralized networks, programmed with immutable codes to guarantee security.
In addition, the underlying technology behind crypto currencies, blockchain, bears the potential to revolutionize various industries beyond finance, supply chain management, healthcare, and voting systems. With crypto currencies, financial transactions can be done in the speed of light. Individuals also, without access to traditional banking systems may be able to participate in the global economy. In 2022, Mohammed Gaffer (PhD Economics) speaking on the future of crypto currencies stated that “the penetration of digital currencies in digital payments is expected to affect the cross-border transfers, and digital currencies have the potential to become the main vehicle for e-payment if not the only one. This will make digital payment services – powered by blockchain technology – the next great upheaval in global e-commerce growth. Financial institutions are also directed to blockchain technologies, which are expected to drive the market in upcoming years. The financial ecosystem will likely undergo massive disruption”.
However, it’s important to note that the cryptocurrency market is highly speculative and volatile as there are still several challenges and uncertainties to battle; from regulatory concerns, scalability issues, to price volatilities, energy consumption associated with the mining processes of certain crypto currency and its variability in the adoption and acceptance by countries and region; for example, Nigeria, which Central Bank, in 2021 interdicted financial institutions from providing services for crypto-related transactions. Nonetheless, Nigerians have remained undeterred as Chainalysis ranked Nigeria in the top 20 of its 2022 Global Crypto Adoption Index.
While buying and holding assets till prices go up is one way to make money in crypto, idle assets can also be put to work by means of different platforms available. In the course of time, the complete potential of crypto currencies will be progressively addressed. We encourage you to periodically revisit our website for further updates and valuable insights on crypto currency.