The Crypto Value Proposition In The Face Of Falling Economies, In A Developing Country.

Recently, I had some interesting conversation with some colleagues. We dwelled extensively on the world's economy, using our country as a microcosm of the bigger picture.

One of the underlying question we attempted to answer was, is crypto currency a better option to money? Fiat in this context.

As a crypto enthusiast, I gave my opinion and answers based on my experience with both over the years, most especially in the face of recent happenings and developments. Also Putting into perspective our country's current terrible economical state.

For starters, to know about crypto currencies is to understand its value proposition,as against what regular fiat is currently offering. Fiat as a currency is failing, the Nigerian Naira is a perfect example.
Over the years, one has developed and built up levels of confidence in the use and adoption of crypto currencies. This is made easier when you factor in prevailing problems facing economies of the world, and consequent rash decisions taken by the controlling bodies.

In more ways than one , crypto currencies has proffered solutions, at least to me, where fiat has failed woefully . If you stay in a country like Nigeria, you would probably understand better.

One of the numerous benefits of crypto is the ease of use and transactions. It is a given that transaction are always faster and easier with crypto,whichever way you look at it. In the face of so much restrictions on fiat in Nigeria, this benefits stands tall and comes in handy. More on this.

Another benefit of crypto is that, it can, to a large extent, protect one's finance from inflation. This particular point has driven its high rate of adoption in many places the world over.

Almost all countries in the world are experiencing one form of inflation to the other. This in turn has impacted on the value of the country's currency. Britain recently had one of its worst inflation in forty years. Source. Nigeria has had it worse. The country is having its highest rate of inflation ever.

The nations currency, the naira, is at an all time low against the usd. Current exchange over the dollar is almost a 100% increase from this same time last year. Currently it is trading at over 830 per usd, last year it traded at about 400.

As devastating as that might sound, this has been more of a blessing to crypto enthusiasts like us. Crypto has in many ways been used as a hedge. Most people has more of crypto in their savings, especially stable coins, than they have for fiat. Me a typical example.

When you visualize holding HBD, against holding the Naira, since this time last year, you will begin to understand what the hype is all about.

To put in perspective, if I had 500,00 naira worth of dollars in my wallet since last year, the value would have risen to about 1000000 if I convert back to naira now. All Thanks to massive inflation. The scariest thing is that the slide is not stopping soon. The more reason one would continue to appreciate and save in crypto.

Recently their has been restrictions on how people use forex from their banks. As it stands, most people can't make payment for online dollar transactions. They have probably being cut off by their service providers.

The few services that could still be used, has a limit of how much you can use. Sometimes this limits are as ridiculous as $10. How much transaction can I do with $10. This makes people unable to carry out their foreign transactions properly.

People need solution. To many people, especially those without knowledge of crypto, it has been a hard task. The good thing is, with recent developments, crypto found a way round it.

Visa backed debit and credit card are springing up faster than one can count. I recently used a crypto backed card to make a payment of $250 in seconds. This would have been almost impossible in Nigeria, with a fiat backed version. Forgot to even mention the transaction charges were next to nothing. Another plus.

For a country like Nigeria, grappling with high inflation and numerous economic challenges, adopting crypto has been a no brainer. Off course it has its own downside (what does not?) it's advantages by far outweighs that. Suffice to say, Crypto would always be a better choice for us in the developing world.

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