Nigeria is Following Venezuela’s Bitcoin Trend

The ability of Bitcoin to  resist inflation, its characteristic independence towards government legislation among several other qualities, makes it an automatic safe haven for embattled economies.

On Monday, Feb. 6, 2017, youths across different cities of Nigeria took to the streets to protest against the leadership of the nation. One of the major reasons for the nationwide protest is the high level of inflation of its national currency.


Nigerians are revolting against government

At the time of writing, the  exchange rate of the Nigerian Naira to the US dollar in the parallel market is about NGN 500 to $1. For an import-dependent country, this automatically gives rise to increased hardship as the price of basic goods and commodities have skyrocketed.

A typical example being a 50kg bag of rice which used to sell for NGN 9,000 now selling for over NGN 22,000.

Several reasons have been blamed for the existing hardship in the country, top on the list being the slump in the price of crude oil, which is the primary export commodity of Nigeria. Some experts insist that beyond the price of crude oil, that  the economic policies of the present leadership is faulty.

This is further emphasized by the current slump of the economy into recession, with no time in sight when the country may get out of it, neither does there appear to be a robust plan.


The Venezuelan example

Compared with  the Venezuelan situation, both countries are plagued with similar circumstances, with crude oil being the major source of international revenue for both Nigeria and Venezuela. However, the Venezuelan situation is more critical, probably because its slump has lasted longer.

Venezuela currently stands as one of the countries where Bitcoin has been embraced to a very large extent. The reasons for this may not be far-fetched. With an inflation rate which stands as the highest in the world, technically both the government and the people 


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