Despite being the largest economy in Africa, most Nigerians now find it extremely difficult to prosper financially due to numerous economic and social issues, most notably the currency rate fluctuation. The Nigerian Naira was around 361 to a dollar in 2020; today, it is worth 800 naira.
People (mainly young people) are turning to Bitcoin due to this volatility for simpler transactions and as a way to save money. Nearly a third of the 70 million workers in the most populous nation in Africa are unemployed, and most of them are under age 35. Nigeria’s youthful population represents a tremendous chance for change. We will have a sizable working-age population for many years to come because 43% of the population is under the age of 14.
But right now, the nation’s growing youth population is more of a burden than an opportunity. It endangers both the economy and social cohesiveness. Nigeria has one of the highest rates of unemployment in the world. In January of this year, the unemployment rate for people aged 15 to 24 was 53.4%, and for people aged 25 to 34, it was 37.2%.
What is Bitcoin
As a virtual currency, Bitcoin acts as money and a medium of payment outside the control of any individual, group, or entity, thus eliminating the need for third parties to be involved in financial transactions. Several exchanges offer it for purchase and are rewarded to blockchain miners for verifying transactions.
Bitcoin is regarded as a store of value like gold and can be broken into smaller units called “satoshis” (up to 8 decimal places) for use in payments. This is because the cost of a single bitcoin has significantly escalated since it was first introduced, going from less than a cent to tens of thousands of dollars. Bitcoin is denoted by the ticker sign BTC when used as a trading asset.
How Does It Work
A blockchain is a distributed digital ledger that serves as the foundation of Bitcoin. As its name suggests, a blockchain is a network of interconnected data made up of units called blocks.
Each contains details about a single transaction, such as the date and time, the total amount, the buyer and seller, and a special identification number for each trade. A digital chain of blocks is created by connecting entries chronologically.
Blockchain is decentralised, meaning any one organisation does not control it. When talking about cryptocurrencies, the term “decentralized” is frequently used, and it simply refers to something that is widely dispersed and lacks a single central location or regulating authority. The technology and infrastructure that control the production, distribution, and security of cryptocurrencies, like as bitcoin and many others, do not rely on centralized organizations like banks and governments to run them.
Bitcoin operates on a peer-to-peer network, where the user – typically an individual or entity wishing to exchange bitcoin – does not need the assistance of an intermediary. All historical Bitcoin transactions are recorded in the network’s public ledger, which users can download directly.
Evolution of Bitcoin In Nigeria
Bitcoin trading is not a new concept, but it is being discussed more frequently in Nigeria today demonstrating its potential in the future. It wasn’t always this way; getting to the point where many Nigerians are continually interested in learning more about Bitcoin has been a journey in recent years. Nigeria has dominated in trading for more than a year, which is evidence that the country must have recognized the benefits of trading Bitcoin and is actively considering all of its alternatives.
Nigeria, the largest economy in Africa, faces several economic and social difficulties that make it impossible for most people to prosper financially. The citizens do not benefit from the continual fluctuations in exchange rates. As a result, more people search for ways to facilitate transactions without incurring significant losses, such as Bitcoin. Bitcoin trading has become even simpler thanks to programs like the BTC era app. With advancements in technology, transactions can now be completed seamlessly, which is what most people seek. Millennials in Nigeria are continuously searching for a way out as the economy continues to decline, and Bitcoin appears to hold promise.
2016 Bitcoin gained traction after several people fell victim to the MMM Ponzi scheme. Even though some Nigerians lost a substantial amount, they didn’t give up on investing and found ways to get viable investment options, including Bitcoin.
Nigerian Youth and Bitcoin
Access to Bitcoin in Nigeria has been difficult and fearful because of the high range of fraudsters in the crypto space; Many Nigerians find it difficult to access to it due to the fear of being scammed. Bitcoin and crypto use has been booming in Nigeria, but the bad side is the rise of scams.
Most of these frauds start on the well-known social media site Instagram, where the con artists present themselves as leading opulent lives thanks to cash amassed through Bitcoin investments. The offenders attempt to entice potential cryptocurrency investors with images of a luxurious lifestyle before persuading them to invest in cryptocurrencies over private chats with guarantees of high returns.
Many young individuals in Nigeria, where opportunities are few, have found refuge in the Bitcoin market. The use of cryptocurrencies may promote financial inclusion. Using cryptocurrencies and the blockchain, users can send money more affordably and effectively without the need for middlemen. This could considerably raise their standard of living. Nigerian youth use Bitcoin as a livelihood; without using a bank as an intermediary or carrying cash, Nigerians can purchase, sell, and store cryptocurrencies. Peer-to-peer (P2P) based transactions have been added to implement the trust further.
They access bitcoin from a cryptocurrency exchange company, but it mainly deals with peer-to-peer establishments for buying and selling of bitcoin to make an adequate profit due to the rise in dollars; you can earn in dollars just with your phone by buying and selling bitcoin. The youths sell the dollar to a buyer who wants to store his or her asset and get paid in either dollar or naira, depending on the currency they want we know most people would pick dollars because the dollar is rising each day but in this article, we would be telling a good and reliable way to buy bitcoins without the fear of being duped by your peers
How Bitcoin is Battling Youth Employment
As Nigeria’s unemployment rate rises, more young individuals seeking employment are turning to the cryptocurrency sector, which has seen job chances expand yearly. Opportunities for young people exist, even though they are now coming from a relatively modest base, as more investors pour their money into the market, bringing with them finances and new businesses.
Although statistics indicate that over 33.4 million Nigerians use cryptocurrencies, with Bitcoin accounting for most of those users, with investors’ ages spanning from 18 to 60, it is clear that the elder generation isn’t paying much attention to Bitcoin. The Nigerian central bank has issued warnings about these types of schemes ever since some Nigerians lost millions of Naira to them.
Even though cryptocurrencies and Ponzi schemes are very different, the elderly nevertheless view them as the same. Despite the caution, a few knowledgeable Nigerians invested in Bitcoin anyhow, and there has been no turning back since. And by 2021, there was 316.9 billion dollars worth of bitcoin moved, with an estimated 16,000 daily transactions.
The Future of Bitcoin in Nigeria
Many young people seeking jobs are looking to the crypto industry, which has seen job prospects develop every year, as Nigeria’s jobless rate grows. Opportunities for young people exist, even though they are now coming from a relatively modest base, as more investors pour their money into the market, bringing them finances and new businesses.
The fact that cryptocurrencies create jobs is one of their most important advantages. The cryptocurrency industry has historically produced many jobs; more jobs will be produced as technology advances. When providing job possibilities for individuals, the cryptocurrency business is no different. There are numerous ways that cryptocurrencies might give Nigerians new opportunities throughout Africa.
The fiat currency that the Central Bank of Nigeria (CBN) issues is Nigeria’s principal medium of exchange, as it does in every other sovereign nation. It does come with some complications, though. The economy’s insanely high inflation causes the naira, Nigeria’s fiat currency, to lose value rather quickly. Additionally, using the currency for cross-border transactions can be challenging.
The government’s excessive regulation is a major factor in this. The use of cryptocurrency has become extremely alluring to tech-savvy Nigerians due to these and other causes. As a result, several Nigerian traders and investors saw cryptocurrencies as the “new means of exchange, medium of saving value, and unit of account.”
With Bitcoin, many of the problems Nigerians encounter without bank accounts when trading internationally can be resolved. A large number of young people have utilized bitcoin and the technologies underlying blockchain technology to produce and sustain a continuous income like that of traditional employment since its inception.
The majority of cryptocurrency users nowadays are from Nigeria. They now make up a sizable portion of the continent of digital currencies. Nigeria and many other nations would experience economic freedom in the future thanks to cryptocurrency. Globally, the status would improve with the conversion of fiat money into bitcoins. According to experts, the cryptocurrency market will grow and reach $1.4 billion by 2027.
The role that Bitcoin and other cryptocurrencies have played in the lives of Nigerian youth cannot be overemphasised because of the numerous ways it has created jobs and improved the lives of Nigerian youths. It is a fact that since the introduction of Bitcoin in Nigeria, many Nigerian youths have invested in and learned about it, helping our youth get a way to improve their livelihood.