1. what are the worryinh feature of the nigerian economy? 2. Why have cryptocurrencies taken off in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
NIGERIANS GO FOR CRYPTOCURRENCIES Cryptocurrencies are often seen as an investment opportunity, particularly in countries susceptible to deprecating and unstable national currencies. Oil-rich Nigeria should be one of Africa's economic success stories. But the country of 200 million people has been through several years of financial woes that have touched every member of society. A falling currency, high inflation and political unrest have taken their toll, while the government of President Muhammadu Buhari has struggled to come to grips with the financial instability. The Central Bank of Nigeria devalued the currency, the naira, by 24% in 2020, sending shockwaves through the economy. A further devaluation of 10% could not be ruled out. The naira has depreciated against the US dollar 30% in the last five years. The collapse in global oil prices was a big factor. Oil represents 80% of Nigeria's exports and 50% of government revenues. The pandemic was also a factor. In countries with high levels of poverty and poor health systems, COVID-19 posed a serious risk due to the large numbers of people living in overcrowded conditions. In Lagos, the capital, most of the city's 20 million inhabitants live in slums. Unemployment during the years of recession was estimated to be 33% of all working-age people. Young people have been especially hard hit. Nigeria has a median age of just 18. Among the many young people out of work are those with educational qualifications who had hoped for good jobs but have found that the only work available is poorly paid, low-skilled work with no security. Among these disillusioned workers, who move from one low-paid job to another, the future looks bleak. It is in this environment that cryptocurrencies have gained a following. Cryptocurrencies such as bitcoin seem to offer opportunities of betterment, despite the risks. And Nigerians are gravitating towards them in growing numbers. Trading in cryptocurrencies has become easy with trading apps such as Paxful (https://paxful.com), the bitcoin trading platform. In 2020, 1.1 million cryptocurrency trades NIGERIANS GO FOR CRYPTOCURRENCIES Cryptocurrencies are often seen as an investment opportunity, particularly in countries susceptible to deprecating and unstable national currencies. Oil-rich Nigeria should be one of Africa's economic success stories. But the country of 200 million people has been through several years of financial woes that have touched every member of society. A falling currency, high inflation and political unrest have taken their toll, while the government of President Muhammadu Buhari has struggled to come to grips with the financial instability. The Central Bank of Nigeria devalued the currency, the naira, by 24% in 2020, sending shockwaves through the economy. A further devaluation of 10% could not be ruled out. The naira has depreciated against the US dollar 30% in the last five years. The collapse in global oil prices was a big factor. Oil represents 80% of Nigeria's exports and 50% of government revenues. The pandemic was also a factor. In countries with high levels of poverty and poor health systems, COVID-19 posed a serious risk due to the large numbers of people living in overcrowded conditions. In Lagos, the capital, most of the city's 20 million inhabitants live in slums. Unemployment during the years of recession was estimated to be 33% of all working-age people. Young people have been especially hard hit. Nigeria has a median age of just 18. Among the many young people out of work are those with educational qualifications who had hoped for good jobs but have found that the only work available is poorly paid, low-skilled work with no security. Among these disillusioned workers, who move from one low-paid job to another, the future looks bleak. It is in this environment that cryptocurrencies have gained a following. Cryptocurrencies such as bitcoin seem to offer opportunities of betterment, despite the risks. And Nigerians are gravitating towards them in growing numbers. Trading in cryptocurrencies has become easy with trading apps such as Paxful (https://paxful.com), the bitcoin trading platform. In 2020, 1.1 million cryptocurrency trades
Expert Answer:
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
Students also viewed these marketing questions
-
Spotlighting opportunities for business in Africa and strategies to succeed in the world's next big growth market Acha Leke @achaleke - Senior Partner and Chairman of Africa Region, McKinsey &...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Detail how the respond to the following scenarios, with one agreeing or acknowledging the critic, and one seeking more information: "You are so lazy" {Husband says to his wife when she refuses to get...
-
Which of the following is a function of skin? a. Temperature regulation b. Manufacture of vitamin D c. Protection from invading pathogens d. All of these are correct.
-
Forten Companys current-year income statement, comparative balance sheets, and additional information follow. For the year, (1) All sales are credit sales, (2) All credits to Accounts Receivable...
-
Rockstar Games, a subsidiary of Take-Two Interactive, released the video game Grand Theft Auto V in 2013. The game features a character named Lacey Jonas, a self-proclaimed actress slash singer and...
-
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: (a) The...
-
The KLM Partnership, which uses the accrual method of accounting, is owned equally by Karen ( cash method taxpayer ) , and LM corporation ( accrual method taxpayer ) . Karen is a real estate...
-
A visual representation of the process a customer or prospect goes through to achieve a goal with a company is called?
-
A compass needle has a magnetic dipole moment of ||=0.75Am2. It is immersed in a uniform magnetic field of |B|= 3.0010^5T. How much work is required to rotate this compass needle from aligned with...
-
A call bull spread can be constructed by simultaneously buying a call option at a strike price of K and selling a call option at a strike price of K2, where K K2, and the options have the same...
-
You measure the mass of your sample of hair gel on a top-loading balance and the value is 3.799 x 103 mg. You fill a graduated cylinder with 40.00 mL of water, and when the hair gel was added the...
-
While completing form 5402EZ, a California tax payer used the Non- refundable Renter's Credit Qualification Record to determine if they could take a credit on Line 19. Their answers to the questions...
-
-What is the simple interest rate on a $1050 investment paying $738.15 interest in 19 years? -Chasity wants $9,000 saved in 3 years to make a down payment on a house. How much money should she invest...
-
A dam is to be constructed using the cross-section shown. Assume the dam width is w = 160 ft. For water height H = 9 ft. calculate the magnitude and line of action of the vertical force of water on...
-
For each of the following reactions, express the equilibrium constant: a) H20 (I) H2 (g) + 02 (g) Ke = 1.0x107 b) Fe2 (g) 2F (g) Ke= 4.9 x 10-21 c) C (s) + O2 (g) d) H2 (g) + C2H4 (g) C2H6 (g) Ke =...
-
From the perspective of the parent company is it better to use a low export transfer price or a high transfer price? What effect does extent of ownership of the importing unit have on your answer?...
-
Licensing seems to be a fairly safe way for a manufacturer to produce in a foreign market for the first time. Comment.
-
In your domestic country of origin what are some reasons that consumers might have to disidentify with their country?
-
A function \(f\left(x_{1}, x_{2} ight)\) of two variables \(x_{1}\) and \(x_{2}\) is given by a. Multiply the matrices and express \(f\) as a polynomial in \(x_{1}\) and \(x_{2}\). b. Determine the...
-
A function \(f(x, y, z)\) of \(x, y\), and \(z\) is defined as a. Multiply the matrices and express \(f\) as a polynomial in \(x, y\), and \(z\). b. Write down the three equations necessary to find...
-
Solve the matrix equation \([\mathbf{K}]\{\mathbf{Q}\}=\{\mathbf{F}\}\) using forward reduction and backward substitution, where, 5-10 [K] = -13-1 0-1 1 {F}= 0
Study smarter with the SolutionInn App