The Future of Cryptocurrency in Nigeria- Part 2

What affects the value of cryptocurrencies

The following can be seen as what affect the value of cryptocurrency:-

1. Increase in demand:- supply and demand is an important factor that affect the value of tradable things in which all digital currencies are inclusive. For instance,if people buying Ethereum are much and other people are willing to sell, there will be an increase in price and vice versa. when the usage of a crypto increase drastically, there will be a big increase in the market capitalization as a result of this, the value of Cryptos will be affected.

1. Inflation of fiat currencies:- in this case, if there is fall in price of fiat currency,then there will be an increase in price of cryptocurrency such as bitcoin(will increase in respect to the given currency),because there will be ability to get more of such money with the Crypto(Bitcoin).

1. Cost of production:- the opportunity and direct cost associated with the production of a coin will also affect the value of cryptocurrency. For instance,the energy and resources that are put together in the mining of Bitcoin is the reason why Bitcoin has value, hence, it has a high production cost.

Why can’t everyone be a miner

Mining is a process of entry of new cryptocurrencies into circulation. Cryptocurrency mining is costly and painstaking. Everyone can't become a Miner because the process of verification of Cryptos are unknown to some people.

Image Source

Why can the cryptocurrency transactions be called more transparent

The transactions of cryptocurrency is transparent because of the abandonment of intermediaries but the use of blockchain technology which will automatically process,record and work on the coin owned by individual trader or investor without any manipulation of central authorities.

The blockchain users are given private keys that identifies them individually. This keys enables them to hold and transact at will. This act can be seen in financial world as the highest level of transparency. Also, the decentralized system in which cryptocurrency make use of makes it transactions to be true and fair in nature i.e transparency.

Development of cryptocurrency in Nigeria

Nigeria's interest in Cryptos especially Bitcoin got to the peak in 2020 during summer which shows itself after researching the trading volume of Bitcoin against the currency domestically used in transacting virtual currency. Trading in Cryptocurrency occurs in Nigeria than almost any other places in the world which reflects a loss of truth in traditional forms of investment.

Thank you for stopping by to read my article.

If you actually like what you see😃😄😉,watch📷📺📸 and read📖📋 I would equally be grateful for an upvote♥️⚡ a very cool comment under my comment box or a reblog 🌀😏 for everyone to see ... and perhaps maybe you would like to follow me for more of my Post to show on your own feeds. Don't miss any of my Post.🔝. Special thanks to all who put big smiles on my face with Auto Upvote for always being supportive to me 💞💯.