Contorted Knowledge of Digital Currency in Nigeria

Filed in Finance by on May 5, 2020 0 Comments

Digital Currency is not widely embraced in Nigeria compared to developed countries and there are some negating factors responsible for this setback. This exposition, therefore, is intended to bring to limelight all the basal information about Digital currency.

Digital currency otherwise called electronic money, digital money, or electronic currency is a type of currency that’s used or handled digitally. This is in contrast with physical money i.e. banknotes and coins.

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Contorted Knowledge of Digital Currency in Nigeria

Digital Currency in Nigeria – Photo Source:

It is an alternative to cash and allows its users to carry out payment with money that is stored on cards, phones, or the internet. Digital currency is simply a cashless kind of currency.

Digital Currency has similar properties with physical currencies except that it is not tangible like naira, coins, and dollar bills, etc. and does not allow for the borderless transfer of ownership and instantaneous transactions. It is bought or traded in exchange like other currencies.

What is Digital Currency Used for?

Digital Currency is transferred and accounted for only with the use of technologies (computers) such as online cryptocurrency exchanges, credit cards, and smartphones. Cryptocurrency Bitcoin is the most widely-used and successful form of digital money.

Bitcoin is a form of digital currency that is not bank or government-based and it allows users to operate anonymously.

This coin is created by users who mine them simply by lending computing powers to verify other users’ transactions. These users receive bitcoins in exchange.

The ten most important types of digital currency are Ethereum, Ripple, Litecoin, Dash, Peercoin, Dogecoin, Primecoin, China coin, Ven, and Bitcoin.

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Basic Uses:

  1. Digital Currency can be used in the purchase of goods from all over the world.
  2. It could be used in sending money to friends and loved ones all over the world and it makes this very simple.
  3. Bitcoins can be used in payment of bills and some outfits allow this.
  4. Most online games and gambling sites use digital currency in their operational exchanges.
  5. It is a form of investment. So many people buy and sell digital currencies.

Meaning of Bitcoin Mining?

Bitcoin mining can simply be said to be the process of verifying transactions and then added to the public ledger that is known as the blockchain. It is also the means through which the release of new bitcoins is processed and released.

Participants of this business are those who have access to the internet and needed hardware. Anyone with these prerequisites is qualified to take part in mining.

Digitalcoin is focused on economic growth and fairness. It is an alternative to cryptocurrency. The Digitalcoin community helps in circulating and facilitating digital currency and they do this by bridging any seaming gap between the common public and the new cryptocurrency technology. 

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Slow Rate of Adoption of Digital Currency in Nigeria and the Possible Reasons

The rate of adoption of Digital Currency in Nigeria is actually improving but not as it would be if some negating factors were nonexistent. These negating factors include:

1. Internet Presence

Many Nigerians especially the uneducated ones are yet to come to terms with the internet and they see internet business as a scam.

They prefer to use ATM cards and not minding or taking into consideration the many benefits attached to digital currencies compared to other payment systems.

According to the Nigeria Communication Commission (NCC), the rate of internet penetration in Nigeria is 50.1%.

2. Underdevelopment

Some part of Nigeria is not developed and there is no access to the internet and even electricity in some of these areas and so, using digital currency is not possible in that kind of areas.

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 3. Risk-Taking

Because of the volatility of digital marketing, some people consider it very risky to get involved in. There is the possibility of someone hacking another person’s wallet and there could sometimes be a high level and decline or incline. These get people scared because they do not want to be on the losing side.

4. Ignorance/Illiteracy

Some people do not know anything about Digital Currency and just conclude it is fake. Most of these people are uneducated and they believe only what they choose to believe not minding if it is true or not.

5. Bank Policy

Digital currencies are not recognized in the banking system of Nigeria and this is another discouragement to many.

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6. Disapproval by the Nigerian Government

The Government of Nigeria warns its citizen against the use of digital currency and anything that has not gotten approval from the government is considered illegal and this discourages people who would have loved to participate.

We hope this was helpful!

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I am Wisdom Enang; a Writer, Editor, and Publisher. To do businesses with us, reach us on our email or connect with me personally by clicking on Facebook.

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