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Trading on Bitcoin is Gambling - NDIC

The Deputy Director, Research, Policy and International Relations Department of the Nigerian Deposit Insurance Corporation (NDIC), Dr. K. S. Katata, had noted that anyone trading on digital currencies like Bitcoin is merely "gambling".

While some central banks have expressed interest in developing digital currencies, he warned that individual persons have never issued a currency and reiterated that trading in them is more of gambling, which would soon backfire

The Nigerian government is very clear on its policy direction: you trade on cryptocurrencies like Bitcoin at your own risk. Think of MMM and how it brought pains to people. I think the government has been doing all to talk sense into the citizens. Personally, I am not a fan of these digital currencies and will not recommend them because they are not obviously legal.

Thank you for addressing this topic. Is there any future for cryptocurrency in Nigeria?

It's bonkers to think that individuals can suddenly introduce currencies, I mean, why do we still have governments? Some have argued that there's no need to have regulation, that simply makes it chaotic the more. If people can introduce currencies in the name of technology, and still go ahead to assign them humongous values using legal currencies, then somebody must be missing something here. At the moment, it's just a gamble, whose lifespan is limited; we saw it with MMM, history has a way of repeating itself.

Good point Francis: you have a great point there. The ICO one is even crazy that someone can sell currencies to fund a business.

To EMROL: "Thank you for addressing this topic. Is there any future for cryptocurrency in Nigeria?". I will answer by linking you to this piece where Senate President noted that the govt is working on a policy document on same. Until they publish that document, no one knows. This may not change what people do internationally. The only issue I have is that it is never a smart idea to do something that is not obviously legal as the court may not assist when problems arise.

Each crypto currency is designed to solve a problem, and in this age of DATAISM the fundamentals of digital currencies are obvious. Traditional currency has several shortcomings that provide the basis and need for digital currencies now and in the near future. Some of these include susceptibility to forgery, loss through theft, involvement of several layers of institutions and people in transactions that can add to your cost, double spending etc. All of which are not affected by cryptos which are completely governed by data.

Of course central banks are nervous, as they should be and will try their best to delay/divert the attention of the general public while they work to reposition their significance in this new space. While I do not advise anyone to run off and invest, the smart thing to do is learn as much as you can as fast as you can to be able to make informed decision.

Just like most dismissed the internet as a fad because it was not understood, I personally think C-currency will do to money what the internet did to mail. If China takes it serious, I think anyone smart should at least pay attention.

Excellent comment from Guest.  But note that the displacement of mail by Internet did not cause mass suicides. But if bitcoin blows, wahala will happen. Buy your points are real

sorry to ask from the little I know about cryptocurrency, it is totally different from MMM. it is introduced to check the purchasing power of using dollars to transact business all over the world in the future. I know the china introduced this as a means to transact business and gradually it is being accepted worldwide. kindly expatiate more on why you think it is gambling and related to MMM pls

The person that brought up this topic is talking trash! MMM is ponzi.. cryptocurrency isn't..  Pls do research on bitcoin and don't bad mouth what you know nothing about!! Like the saying goes "what you don't know is bigger than YOU!"

 

I am sure the Director cannot  be accused that he doesn't know the difference between mmm and bitcoin. The issue is not the technology or use but the legality of activity in Nigeria

Did you say China are taking it seriously? If by "seriously" you mean they fright so much about it that they clamp down heavily on it then I would agree. China's clear stance on ambiguity and unregulated nature of bitcoin is partly responsible for the crash in its value then. As long as it's unregulated and someone somewhere can just mine currencies as they want it's an accident waiting to happen