Bitcoin has become a huge talking point in the so-called ‘investment’ economy. Every teenager you’ve ever met has told you that he or she has invested in Bitcoin.
But what is Bitcoin?
Bitcoin is an invisible currency; English calls it ‘Digital Currency’ or ‘Virtual Currency’ or ‘Cryptocurrency’.
Apart from Bitcoin, there are many types of currencies available. All the others are called ‘Altcoins’.
But Bitcoin is the most popular and the most expensive.
One Bitcoin coin worth over ₦4 million
It was in 2009 that a man named Satoshi Nakamoto unveiled the Bitcoin scheme, but no one knows exactly who the man is to this day.
How Bitcoin is traded
Because Bitcoin is not a physical currency, it is distributed via computers and the Internet.
No government agency or company regulates the use of Bitcoin for trading.
Only the so-called ‘Miners’ are the ones who produce and organize how to do business.
The most common form of technology is the so-called ‘blockchain’ technology.
Explaining ‘Blockchain’ technology will be a story of its own.
This is why it is important to be very careful when investing in Bitcoin or other ‘cryptocurrency’, to avoid getting duped.
Can You Use Bitcoin To Make Purchase In Nigeria?
It has not been easy to use Bitcoin to buy goods in the Nigerian market, but the cost is huge.
Research shows that Nigerian are users of Bitcoin in the entire African region.
There are various companies whose job is to help people buy Bitcoin or exchange the ones they have for naira or dollars.
Alternatively, you can use Bitcoin to make purchases in countries such as Japan, Switzerland, Germany, Singapore and so on.
It is generally used to save money and to send money from one country to another.
Is Bitcoin Legal in Nigeria?
Currently, there is no law prohibiting anyone from investing in Bitcoin or other ‘cryptocurrency’ in Nigeria, but there are no legal restrictions.
The Central Bank of Nigeria has warned people to be careful about these ‘unseen currencies’.
They said: “There are no laws protecting anyone who invests their money in cryptocurrency.
“We warn people that cryptocurrency is not a legal system for business in Nigeria.”
“Whoever loses his money in cryptocurrency, there is nowhere for him to complain. It means the money is gone.”
But the Securities and Exchange Commission released a letter in September saying it would begin regulating cryptocurrency to prevent people from losing their money.