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...
-
Without melanocytes, skin would a. Be too thin. b. Lack nerves. c. Not tan. d. Not be waterproof.
-
How would you develop a portfolio matrix for your school of business?
-
What is the concept of bounded rationality? How might the concept be used to help distinguish between the provision of serviceable and unserviceable accounting information in environmental accounting?
-
Determine whether the following statements about the nature of ethics are true or false. Explain your answers. a. Ethics is the study of why people act in certain ways. b. The solution to moral...
-
Since our GDP project allowed us to reflect on global economic function. Now it's time to begin studying how strong economies can collapse, enter recessions or even sometimes depressions. We will be...
-
Ayayai Hotels Ltd. (AHL) is a small boutique hotel that provides 44 suites that can be rented by the day, week, or month. Food service is available through room service as well. In addition, there...
-
An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Recession Normal Boom Enter your answers below. E(r) = Probability 0.12 0.49 0.39...
-
Do both for-profit and not-for-profit healthcare organizations have access to contribution capital?
-
When your hand turns the handle of a faucet, water comes out. Do your push on the handle and the water coming out constitute an actionreaction pair? Discuss.
-
What impact do ratings have on a borrowers cost of debt?
-
How is the cost of debt estimated? What about the cost of equity?
-
What important changes have occurred in the structure of stock markets in the last two decades?
-
2. Use the data in the handout to calculate AH and AS of the following reactions. From the values of AH and AS, calculate AG at 25 C and predict whether each reaction is spontaneous under standard...
-
Banner Company acquires an 80% interest in Roller Company for $640,000 cash on January 1, 2013. The NCI has a fair value of $160,000. Any excess of cost over book value is attributed to goodwill. To...
-
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) Describe the distinguishing characteristics of production systems where: (i) job costing techniques would be used, and (ii) process costing techniques would be used. (b) Job costing produces more...
-
(a) While the ascertainment of product costs could be said to be one of the objectives of cost accounting, where joint products are produced and joint costs incurred, the total cost computed for the...
-
(a) Explain briefly the term joint products in the context of process costing. (b) Discuss whether, and if so how, joint process costs should be shared among joint products. (Assume that no further...
Study smarter with the SolutionInn App