There is an ever increasing demand for faster and safer means of performing
transactions using currencies that will give investors and business acumens a reason to
do so with peace of mind.
Crypto currency is a digital currency from Block Chain Technology. This secure means
of transaction cause it to depend on cryptography. An additional control unit is
dependent on a complex formula that has to be solved by miners globally. The first
crypto currency that was introduced in 2009 was Bitcoin. This digital currency was
designed by an unknown man who is believed to be Satoshi Nakamoto. Currently, one
Bitcoin is mined every four minutes and this can really become more difficult as the
years goes by. There are currently over thirteen million units of Bitcoins in circulation
and the total units will clock at over twenty one million. According to the algorithm, this
will be so at the end of 2140 years.
However, Crypto currency especially Bitcoin became so popular when the Mavrodi
Mondial Movement (MMM), a ponzi scheme, introduces it in the scheme. The Nigeria
Government recently has made several investigations about the possible implications of
the use of Bitcoins in the Nigerian economy. Perhaps, there are some new digital
currencies around the world now.
On a global view, some countries have banned the use of Crypto currency while others
have been very observant about its performance. Some countries have launched or
even some are about to launch their own crypto currencies. Some countries have even
allowed the use of Bitcoin not necessary as an acceptance as their National currency
but to allow individuals to trade with it at their own risk.
To the Nigerian Government, since Bitcoin is a decentralized form of currency, they will
lose control over its flow in circulation and this can lead to illegal transactions among
politicians and drug lords. Also, Since Bitcoins transactions are done over the internet,
two possible problems that may arise are:
1. Non-technological savvy individuals like the old people will find it difficult to trade
2. It is highly prone to hackers.
Therefore, it is important that individuals and stake holders utilizing these digital
currencies to trade carefully with it so as not to become victim of scammers through the
ever-increasing money doublers schemes like MMM and the HYIP programmes.