While some crypto investors fear over the value of bitcoin, which seems to be in trouble once again, others see it as a solution to their financial problems. For those who didn’t think it possible, here it is, a national currency more troublesome than bitcoin, the Nigerian Naira (NGN).
No wonder Nigerian entrepreneurs are turning towards bitcoin to manage their businesses – on a national and international level. Here’s an overview of the history of NGN/USD over the last five years.
Both unstable, but one thing is sure: Bitcoin climbed up over the years, having started July, 2013 with a value smaller than $100, while the NGN lost more than two-thirds of its value. Changes in the value of NGN can happen overnight as well and businesses are often faced with major loses as a result of its instability.
One example is Silas Okwoche, co-founder of Nerve Mobile. The self-taught engineer was purchasing Android smartphones from China via Alibaba. However, when the Nigerian Naira fell over 15% against the Chinese Yuan, his venture came to an end. Overnight, his product became too expensive to purchase and resell.
Temo, another Nigerian entrepreneur, buys hardware from China. Since bank transfers and reliability are rather low in the area, its founder chose to use cryptocurrency for such international transactions. In addition to a much faster process (by days), his business doesn’t have to pay bank fees or rely on external services at all.
Such stories might explain why Nigeria’s investment in cryptocurrencies reached as much as $5mi. The overall sentiment in this African country is improving, and some have even suggested that it’s a matter of time until the government will approve the crypto and blockchain industry.