The Impact of Digital Asset Trading Market on Nigeria’s Economy
What are Digital Assets?
Digital assets are simply items whose content is stored in electronic format.
With that definition, you would most likely be thinking about images, music, movies, documents, etc. The truth is, those indeed are digital assets. Thanks to technology, these assets have developed far beyond that, and are also digital currencies.
What Are The Types of Digital Assets?
Based on this article, I would be focusing on two major types of digital assets which serve as a source of money. Gift cards and cryptocurrencies.
Gift cards or gift certificates are a type of debit card, pre-loaded with a specific amount of money that could be used for a variety of purchases at a designated brand.
Gift cards serve as alternative sources of payment at designated brands. For example; A $100 Amazon gift card could be redeemed to make purchases online or any of the multiple Amazon stores located in the United States.
These cards are also excellent presents to give a loved one on their special day. When a birthday, wedding anniversary, baby shower, graduation, etc is coming up, gifting your loved one a loaded gift card from their favourite brand would always put you in their good books.
Presently, the numerous gift card brands could not all be possibly be listed. However, some of the notable and familiar names include; Amazon, Itunes, Steam, Walmart, Apple, Google Play Gift Cards, etc.
What are cryptocurrencies?
Cryptocurrencies are Binary data that were designed to serve as a means of exchange of goods and services. Created with the use of blockchain technology, these coins are secured by Cryptography.
Currently, there are over 10,000 coins in the crypto market. You should be familiar with certain names like Ethereum, Bitcoin, Tether, etc.
Evolution of Digital Asset trading in Nigeria
To those who are just getting accustomed to digital asset trading in Nigeria, you should consider yourselves lucky. There is a very huge difference between what it is now and what it was back then.
A couple of years back, most Nigerians were not familiar with this concept. A crypto or gift card holder in Nigeria, wanting to exchange his asset for cash was practically embarking on an impossible mission here.
It was just not feasible. This was not a result of the difficulty of this process per se, but the awareness, There were a lot of dark clouds regarding these assets here in Nigeria, and as a result, people felt very hesitant to own or collect them. With very little demand for this service, there was no incentive for individuals to provide supply.
How did we get here? you may be wondering. Thanks to certain trading platforms that decided to pioneer the movement, the market was able to grow over the years.
The founders of these early platforms also witnessed the vast scarcity in the market and knew that they most likely won’t be the only ones going through this. They leapt and decided to create a solution to this problem without ripping people off.
Word got around, and many other Nigerians developed the confidence to trust these platforms with their assets. As the demand for this service started growing rapidly, other entrepreneurs saw the opportunity and decided to enter the market.
In Nigeria, what was once perceived as a myth, is not only possible but has been made very simple.
The Impact of The Digital Asset Trading Market on Nigeria’s Economy
Another important aspect to look at after the evolution of this market is its impact. Has this market affected Nigeria’s economy Positively or negatively?
I believe that everything in life has its pros and cons. It would be up to you to decide if the pros outweigh the cons for you or vice versa.
Since the introduction of digital asset trading on a national level, Nigerian citizens have enjoyed the ease of transactions. Day-to-day activities such as payments and exchange have been made simpler and faster amongst Nigerians and even beyond.
The increase in patronage of this service has profited such platforms, which has led to its continuity and expansion. This act has employed various intelligent Nigerians.
This market has also aided international business transactions between Nigerians and individuals and companies in the diaspora.
For example, a graphics designer or web developer working remotely in Nigeria could be freelancing for a company located in America and receive payment straight to his BTC wallet or the equivalent in gift cards, which saves the several hassles faced in the banking halls or waiting for hours or days for the money to arrive from outside the country.
With the massive rise in demand for this service, unfortunately, there was also an increase in digital asset scams in the market. Crypto and gift card owners have fallen victim to these scammers throughout exchanging their assets for cash.
Quite frankly, this would only happen when adequate research is not conducted. With money, you should be patient. There should be enough background checks done with whoever you are entrusting your money with. Till today there are still various victims of BVN and real estate scams. This would not stop us from using our traditional banks or buying and renting properties.
There are still legitimate exchange platforms to sell gift cards in Nigeria which could be used to avoid scams.