Altcoins Talks - Cryptocurrency Forum

Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: MrSpasybo on February 25, 2024, 09:39:44 PM

Title: Crypto is causing fiat to lose value?
Post by: MrSpasybo on February 25, 2024, 09:39:44 PM
Crypto-currency is being accepted in many places as a form of payment to replace fiat, so sometimes crypto is considered by governments as a risk that affects the right to regulate the national economy. However, I never thought that someone could say that crypto is the cause of fiat's devaluation. At least until Nigeria's Presidential Adviser shared his views.

The adviser argues that cryptocurrency exchange platforms are exacerbating the devaluation of the naira, Nigeria's national currency. He also criticizes Binance, a leading cryptocurrency exchange, for setting exchange rates that undermine the Central Bank of Nigeria's (CBN) authority. The Nigerian government is wary of the volatile nature of cryptocurrencies and the risks they pose to economic stability. Consequently, the government is considering a comprehensive ban on crypto platforms to protect the naira and ensure fiscal discipline.

"Through a series of statements on his X account, Onanuga has called for decisive action against cryptocurrency exchange platforms, accusing them of exacerbating the devaluation of the naira, Nigeria's national currency[1]."

I am not surprised by the series of news related to the war between the Nigerian government and Crypto:
But it seems Nigeria's Presidential Adviser is confusing Reason and Result: The Reason was Nigeria's economic downturn, which led to the devaluation of fiat, Resulting in people choosing to accumulate crypto to protect their assets. The Presidential Adviser may have its own opinion, but NGNUSD data does not lie.

(https://www.tradingview.com/x/2fREPpFb/)

NGNUSD chart shows that over the past decade, NGN has lost 90% of its value compared to USD. I don't think this is a result of the emergence of crypto in Nigeria. In NGN's devaluation scandal, crypto is innocent!

I count this intentional confusion as intentional deception to cause misunderstanding among people with little understanding of the crypto market. For those holding crypto, these lies will have no impact whatsoever, they understand that crypto is helping them protect their assets and avoid the risks of fiat's crazy devaluation.

What do you think about this Presidential Adviser's slander against crypto? Will this become a new behavior that other governments can learn to crack down on crypto?
[1] Nigeria's Battle with Crypto: Presidential Adviser Calls for Crackdown on Exchange Platforms (https://bnnbreaking.com/finance-nav/nigerias-battle-with-crypto-presidential-adviser-calls-for-crackdown-on-exchange-platforms)
[2] Nigeria's banks barred from cryptocurrency transactions -central bank (https://www.reuters.com/article/idUSL1N2KB1Q4/)
[3] Nigerian central bank lifts ban on crypto trading (https://www.reuters.com/world/africa/nigerian-central-bank-lifts-ban-crypto-trading-2023-12-23/)
[4] Nigeria slaps strict rules on banks after lifting crypto ban (https://www.bloomberg.com/news/articles/2024-01-03/nigeria-slaps-strict-rules-on-banks-after-lifting-cryptocurrency-ban)
Title: Re: Crypto is causing fiat to lose value?
Post by: SamReomo on February 25, 2024, 09:51:12 PM
Nope crypto isn't causing fiat devaluation. The value of fiat is losing due to various reasons and one of which is the corrupt politicians who hold leadership positions in a country.

Another cause for devolution of a currency is overprinting of it, which's a main concern when it comes to a currency's value.

When current account of a country gets in deficit that also causes inflation and loss of value of that country's fiat currency.

I'm not sure why Nigeria's currency is losing its value but I'm very sure it's not losing its value because of crypto-currencies.
Title: Re: Crypto is causing fiat to lose value?
Post by: electronicash on February 25, 2024, 10:03:49 PM

national currency losing its value is always due to inflation and printing their currency as it equates to printing counterfeit.  but of course the CBN will not point fingers to themselves but to someone to blame to and they see crypto. are they still convincing people to use their e-naira?

this is a cheap attempt to paint crypto the negative image. i wouldn't be surprised if they will start promoting the government backed crypto exchange or their government will start using USD as their currency completely abandoning e-naira.
Title: Re: Crypto is causing fiat to lose value?
Post by: TomPluz on February 26, 2024, 03:12:25 PM
Quote from: MrSpasybo on February 25, 2024, 09:39:44 PM

Crypto-currency is being accepted in many places as a form of payment to replace fiat, so sometimes crypto is considered by governments as a risk that affects the right to regulate the national economy. However, I never thought that someone could say that crypto is the cause of fiat's devaluation. At least until Nigeria's Presidential Adviser shared his views.


I am sure Presidential Adviser Bayo Onanuga is braking at the wrong tree and he can also be a wrong dog, in the first place. In case the government will listen to this man, he can be doing a great disservice to his country and his people by limiting their participation in the emerging cryptocurrency industry which one or another can be making an impact for Nigeria's economy if the government will play it well with good strategy and policies. Cryptocurrency has nothing to do with his country's falling value as it is tied to how the government is doing its well in steering the economy and not doing stupid polices like unlimited money printing and closing its door for investments from the outside. Other countries in the African continent are now looking at how they can take advantage of the cryptocurrency movement by passing regulations friendly to fintech companies and crypto-related firms domestic and abroad. Let's hope that this man's voice will be drown by protest by Nigerians who are making good in cryptocurrency and will not allow his POV to be adopted by the government. 



Title: Re: Crypto is causing fiat to lose value?
Post by: KryptoBull on February 27, 2024, 12:09:53 AM
Quote from: MrSpasybo on February 25, 2024, 09:39:44 PM
NGNUSD chart shows that over the past decade, NGN has lost 90% of its value compared to USD. I don't think this is a result of the emergence of crypto in Nigeria. In NGN's devaluation scandal, crypto is innocent!

I count this intentional confusion as intentional deception to cause misunderstanding among people with little understanding of the crypto market. For those holding crypto, these lies will have no impact whatsoever, they understand that crypto is helping them protect their assets and avoid the risks of fiat's crazy devaluation.

What do you think about this Presidential Adviser's slander against crypto? Will this become a new behavior that other governments can learn to crack down on crypto?
These are just words to make people shift their blame to crypto when fiat depreciates and temporarily forget or ignore the stagnation of the economy and the incapacity of the government in the operating process. Rates on exchanges are determined by the local fiat/USD rate only, investors decide for themselves to trade. If there is a large difference, many people will participate in buying and selling to make a profit, helping the local fiat/USDT rate return to a reasonable level. Many other countries also have fiat transactions with USDT but they do not blame such exchanges.

This action only shows the advisor's irresponsibility, hope people in Nigeria will not be so easily deceived. They should understand the truth and switch to using crypto to protect their assets, they cannot put their trust in their government anymore.
Title: Re: Crypto is causing fiat to lose value?
Post by: Baofeng on February 27, 2024, 12:10:19 AM
This is just another excused coming from the Nigerian government. Who is the right frame of mind would accused crypto as the one causing devaluation of their local fiat? It's the government that should be blame for it.

However, they can't really stop crypto in Nigeria, it's one of the biggest cryptocurrency usage remains the highest in Africa. Just sad that they will have to take a hard line stance, and our crypto brothers in Nigeria will have to suffer the consequences just because their government is trying to blame that had happen to their economy on crypto.
Title: Re: Crypto is causing fiat to lose value?
Post by: Cryptsafe on February 27, 2024, 02:31:40 AM
The currency valuation of every nation depends on how good a nation's economy is. A country can not just begin to lose value in their currency because it lifted the ban on cryptocurrency just a few months ago. I think the person giving such an excuse lacks knowledge of how cryptocurrency works. He is ignorant of the fact that the world is far gone beyond that era of analogue economy and engagements but rather digital.

Nigeria is a nation that imports virtually everything when the nation and its citizens are willing to produce. They have the capacity but the government and the leadership are bent on frustrating the efforts of her citizens in producing for local consumption. Those guys are just old forks bereft of ideas to move the economy forward but looking at what to use gives excuses for their incompetency.
Title: Re: Crypto is causing fiat to lose value?
Post by: Zed0X on February 27, 2024, 01:48:50 PM
After money laundering, it's fiat devaluation now? Never heard of that before. The one accusing crypto exchanges as the cause of this should release a full report and state how so. They like to throw big words as if the people will just accept it without further explanation.
Title: Re: Crypto is causing fiat to lose value?
Post by: notblox1 on February 27, 2024, 03:29:28 PM
If crypto didnt exist there would be something else that would be used instead, maybe precious metals like gold.
Fiat money is printed from nothing all the time and that is causing it to lose value non-stop, because there is no backing for this.
Monopoly money is probably worth more because it is not printed like that  ;D
Title: Re: Crypto is causing fiat to lose value?
Post by: gunhell16 on February 27, 2024, 04:28:14 PM
If I look at the title you made, I think that right now, or in the generation we have today, we are not yet in a situation where fiat loses its value in any country because of cryptocurrency or Bitcoin.

Then again, Bitcoin, or cryptocurrency, was not created to remove the value of any fiat in every country around the world. Instead, it can even contribute to the good economy of a country that will accept good things here. Right now, for me, "Cash is King," but in terms of digital currency, Bitcoin is King, and we know that here in the field of the crypto industry.
Title: Re: Crypto is causing fiat to lose value?
Post by: elbans89 on February 28, 2024, 05:22:31 AM
Quote from: gunhell16 on February 27, 2024, 04:28:14 PM
If I look at the title you made, I think that right now, or in the generation we have today, we are not yet in a situation where fiat loses its value in any country because of cryptocurrency or Bitcoin.

Then again, Bitcoin, or cryptocurrency, was not created to remove the value of any fiat in every country around the world. Instead, it can even contribute to the good economy of a country that will accept good things here. Right now, for me, "Cash is King," but in terms of digital currency, Bitcoin is King, and we know that here in the field of the crypto industry.

Actually, fiat and crypto have their respective functions.  Fiat is King in transactions, both manual and online transactions.  Bitcoin is king in the world of digital currency investment.  So I don't think crypto takes away the value of fiat money for now.  But it doesn't rule out the possibility that it will happen in the future.
Title: Re: Crypto is causing fiat to lose value?
Post by: target on February 28, 2024, 06:02:52 AM


The Nigerian Bank blames crypto for the fall of their fiat. They were the ones printing notes and then they blame it to crypto but this is the way to say to the public to not worry because they will ban crypto.
Title: Re: Crypto is causing fiat to lose value?
Post by: LogitechMouse on February 28, 2024, 06:41:51 AM
The government is the one to blame for that one, not cryptocurrencies.

I guess we all agree that the government of Nigeria is corrupt. People there are struggling every single day. People there are having a hard time buying the things that they need to buy daily while the government, on the other hand, is pretending that nothing's happening bad on the country.

Well, those who know more about crypto know that it isn't the reason why that's happening. Inflation + bad government = currency value going down. They can blame crypto, but those who are involved in crypto know that it isn't the main reason for what's happening with their fiat currency. That chart though. It's like stairs :D
Title: Re: Crypto is causing fiat to lose value?
Post by: bitterguy28 on February 28, 2024, 09:00:12 AM
Quote from: electronicash on February 25, 2024, 10:03:49 PM

national currency losing its value is always due to inflation and printing their currency as it equates to printing counterfeit.  but of course the CBN will not point fingers to themselves but to someone to blame to and they see crypto. are they still convincing people to use their e-naira?
how many countries have we seen now that printing lots of currencies and making its almost valueless .
I hate seeing my country having this so lets see whom to blame.

Quote
this is a cheap attempt to paint crypto the negative image. i wouldn't be surprised if they will start promoting the government backed crypto exchange or their government will start using USD as their currency completely abandoning e-naira.
well they will keep trying mate remember that crypto had been the pain in government and banks asses so they wanted to see it burned.
Title: Re: Crypto is causing fiat to lose value?
Post by: therozaq on February 28, 2024, 09:08:42 AM
Why is crypto the cause of the decline of fiat currency?
 Crypto is always used as an excuse for fiat problems.  Shouldn't the government be blamed for not being able to maintain the value of its fiat currency?  And isn't inflation an old problem that will always attack fiat...;) it sounds funny, if crypto is considered a problem.
Title: Re: Crypto is causing fiat to lose value?
Post by: Stompix on February 28, 2024, 09:15:43 AM
Quote from: MrSpasybo on February 25, 2024, 09:39:44 PM
NGNUSD chart shows that over the past decade, NGN has lost 90% of its value compared to USD. I don't think this is a result of the emergence of crypto in Nigeria. In NGN's devaluation scandal, crypto is innocent!

Hihi, not really, it can also act like an intermediary for this, much like gold has in the past!
For example somebody wants to buy Bitcoin with Nairas, but since Bitcoin is valued in dollars and it is not something that you produce locally, much like gold in most of the times you buy it from somebody who is not really wanting your currencies and it changes it immediately into another, basically exacerbating the demand for $ and increasing the offer for Naira's also.
So for every $million of crypto purchases there will be one million of $ needed and the equivalent of $1million nairas on the market but with different demand, which would devalue the naira, then with he next batch more naira's less $ to trade for and so on and on and on!
Much like how the Argentinian peso is devaluating as people buy $!

Of course the scale at which happens when compared to the other ways the naira is dragged down by failing exports and costly imports is just below the level of margin error but if every citizen would decide tomorrow to buy bitcoin wish all it's wage, then yeah, it will be like an instant collapse.
Title: Re: Crypto is causing fiat to lose value?
Post by: DrBeer on February 28, 2024, 10:09:12 AM
Unfortunately or fortunately - but cryptocurrencies don't have much of an impact on the fiat system. And there's a lot of reasons why.
If they are considered as intangible investment assets, then their entry and exit to the market is through fiat.
If we consider it as a means of payment, it has no influence on the fiat world at all, as it is a single case.
The only thing that cryptocurrencies affect in the fiat world is the work of services connecting the crypto and fiat worlds. There are more regulatory laws for them.
Unfortunately, the current financial and economic model of the world economy does not envision the use of monetary surrogates such as cryptocurrencies.
Title: Re: Crypto is causing fiat to lose value?
Post by: 0t3p0t on February 28, 2024, 04:30:28 PM
Quote from: SamReomo on February 25, 2024, 09:51:12 PM
Nope crypto isn't causing fiat devaluation. The value of fiat is losing due to various reasons and one of which is the corrupt politicians who hold leadership positions in a country.

Another cause for devolution of a currency is overprinting of it, which's a main concern when it comes to a currency's value.

When current account of a country gets in deficit that also causes inflation and loss of value of that country's fiat currency.

I'm not sure why Nigeria's currency is losing its value but I'm very sure it's not losing its value because of crypto-currencies.
The highlighted phrase is for me the most common reason why there is devaluation in country's currency. And yeah cryptocurrency does not cause devaluation in a local currency unless majority of people are abandoning it in favor of crypto but do we really think government will allow that to happen? Of course no because they are in control of everything.
Title: Re: Crypto is causing fiat to lose value?
Post by: Jamal Aezaz on February 28, 2024, 07:29:39 PM
First thing is that if fiat is printing in a large number without any restrictions then it will gradually loss its value and other thing is that due to inflation fiat currency is losing money but still it is used widely and one cannot ignore its uses.

Cryptocurrency has its own place and success but if cannot devalue fiat because in our daily life we cannot use Crypto but we are using fiat. People are finding new ways of earning so crypto is in their way so that's why they are accepting crypto for earning but they are also using fiat for daily expenses.
Title: Re: Crypto is causing fiat to lose value?
Post by: Agbe on February 28, 2024, 11:25:33 PM
In my country it is not bitcoin or cryptocurrency that causes the devaluation of the fiat currency but the dollar. In the last ten years, the dollar was exchanged with the fiat as the rate 150 but now we are exchanging $1 to 1,500  and because of that everything is very high in price. Poor people are crying every day because high cost of living. But people are saying that it is because of the printing quantity of the fiat currency that is causing the inflation and I also reason with them.
Title: Re: Crypto is causing fiat to lose value?
Post by: Stompix on February 29, 2024, 05:26:37 PM
Quote from: Agbe on February 28, 2024, 11:25:33 PM
In my country it is not bitcoin or cryptocurrency that causes the devaluation of the fiat currency but the dollar. In the last ten years, the dollar was exchanged with the fiat as the rate 150 but now we are exchanging $1 to 1,500  and because of that everything is very high in price. Poor people are crying every day because high cost of living. But people are saying that it is because of the printing quantity of the fiat currency that is causing the inflation and I also reason with them.

It's not only money printing and least not in case of Nigeria!
Money printing doesn't automatically trigger inflation, Japan is the obvious example where a decade of money printing didn't manage to bring inflation over 2%, you can print 1000 trillions if the people don't spend it you will have a flat big zero inflation!

What you're experiencing now in Nigeria is the result of years of overvaluation of you currency, you had a good run while oil was high, then revenue started to plummet, you forced a fixed rate which had no real backing against the USD and you spend all your reserves to try to keep that fixer rate going, then implemented two rates, official and less official but enforced (that was nafex) , and then when obviously those failed also, you got what is happening now, which is the true value of the naira!

Oh, you know something, let's call it ironic at least?
Every time a nigerian tries to escape inflation and buys $ for its naira it's digging the pit deeper for the others! ;)
Title: Re: Crypto is causing fiat to lose value?
Post by: Gideon99 on March 01, 2024, 07:25:32 AM
Quote from: MrSpasybo on February 25, 2024, 09:39:44 PM
Crypto-currency is being accepted in many places as a form of payment to replace fiat, so sometimes crypto is considered by governments as a risk that affects the right to regulate the national economy. However, I never thought that someone could say that crypto is the cause of fiat's devaluation. At least until Nigeria's Presidential Adviser shared his views.

The adviser argues that cryptocurrency exchange platforms are exacerbating the devaluation of the naira, Nigeria's national currency. He also criticizes Binance, a leading cryptocurrency exchange, for setting exchange rates that undermine the Central Bank of Nigeria's (CBN) authority. The Nigerian government is wary of the volatile nature of cryptocurrencies and the risks they pose to economic stability. Consequently, the government is considering a comprehensive ban on crypto platforms to protect the naira and ensure fiscal discipline.

"Through a series of statements on his X account, Onanuga has called for decisive action against cryptocurrency exchange platforms, accusing them of exacerbating the devaluation of the naira, Nigeria's national currency[1]."

I am not surprised by the series of news related to the war between the Nigerian government and Crypto:
  • Feb 2021: The Central Bank of Nigeria bars banks and financial institutions from dealing in or facilitating transactions in crypto assets, embezzling money laundering and terrorism financing risks[2].
  • Dec 2023: Nigeria's central bank has lifted a ban on transacting in cryptocurrencies, while saying global trends had shown a need to regulate such activities[3].
  • Jan 2024: Nigeria's central bank released has inaugural guidelines for banks opening cryptocurrency accounts, while retaining its ban on them holding or trading in virtual assets on their own behalf[4].
But it seems Nigeria's Presidential Adviser is confusing Reason and Result: The Reason was Nigeria's economic downturn, which led to the devaluation of fiat, Resulting in people choosing to accumulate crypto to protect their assets. The Presidential Adviser may have its own opinion, but NGNUSD data does not lie.

(https://www.tradingview.com/x/2fREPpFb/)

NGNUSD chart shows that over the past decade, NGN has lost 90% of its value compared to USD. I don't think this is a result of the emergence of crypto in Nigeria. In NGN's devaluation scandal, crypto is innocent!

I count this intentional confusion as intentional deception to cause misunderstanding among people with little understanding of the crypto market. For those holding crypto, these lies will have no impact whatsoever, they understand that crypto is helping them protect their assets and avoid the risks of fiat's crazy devaluation.

What do you think about this Presidential Adviser's slander against crypto? Will this become a new behavior that other governments can learn to crack down on crypto?
[1] Nigeria's Battle with Crypto: Presidential Adviser Calls for Crackdown on Exchange Platforms (https://bnnbreaking.com/finance-nav/nigerias-battle-with-crypto-presidential-adviser-calls-for-crackdown-on-exchange-platforms)
[2] Nigeria's banks barred from cryptocurrency transactions -central bank (https://www.reuters.com/article/idUSL1N2KB1Q4/)
[3] Nigerian central bank lifts ban on crypto trading (https://www.reuters.com/world/africa/nigerian-central-bank-lifts-ban-crypto-trading-2023-12-23/)
[4] Nigeria slaps strict rules on banks after lifting crypto ban (https://www.bloomberg.com/news/articles/2024-01-03/nigeria-slaps-strict-rules-on-banks-after-lifting-cryptocurrency-ban)

This ideal that crypto is competing with fiat currency and causing them to lose value. Crypto is a global decentralized, highly liquid asset that easy to transfer and exchange. That's why many people choose it rather than traditional fiat Currencies. Crypto is not causing any damages to the value of Fiat currency, it's just that the total market cap of all cryptocurrency is still tiny fraction of the global economy. What do you think about this?
Title: Re: Crypto is causing fiat to lose value?
Post by: Sim_card on March 01, 2024, 08:45:43 AM
OP, why are you listening to the lies that your country government is saying. Instead of blaming their incompetency on the high level of inflation, and hardship in the country, they are putting it on cryptocurrency. How is this possible? Does crypto have legs, hands and has an office, that it is causing the depreciation of Naira. I don't know why Nigeria government is so corrupt that they cannot even think of what they are saying to the public. Nigeria is more of a consuming nation than producing nation, so why wouldn't your currency depreciate, when most commodities are imported. What about bad government, what is the negative impact of a bad government.
Title: Re: Crypto is causing fiat to lose value?
Post by: MrSpasybo on March 09, 2024, 08:30:39 PM
Quote from: Sim_card on March 01, 2024, 08:45:43 AM
OP, why are you listening to the lies that your country government is saying. Instead of blaming their incompetency on the high level of inflation, and hardship in the country, they are putting it on cryptocurrency. How is this possible? Does crypto have legs, hands and has an office, that it is causing the depreciation of Naira. I don't know why Nigeria government is so corrupt that they cannot even think of what they are saying to the public. Nigeria is more of a consuming nation than producing nation, so why wouldn't your currency depreciate, when most commodities are imported. What about bad government, what is the negative impact of a bad government.
I'm not in Nigeria, I'm just referring to a statement by the Nigerian presidential advisor. This event can help us see more clearly the problems in the economy, weak governance and its consequences on the value of fiat. Crypto should be seen as the solution, not the cause, to these problems.

I believe that no one who understands economics will believe these blaming statements  8)
Title: Re: Crypto is causing fiat to lose value?
Post by: electronicash on March 09, 2024, 09:20:43 PM
Quote from: MrSpasybo on March 09, 2024, 08:30:39 PM
Quote from: Sim_card on March 01, 2024, 08:45:43 AM
OP, why are you listening to the lies that your country government is saying. Instead of blaming their incompetency on the high level of inflation, and hardship in the country, they are putting it on cryptocurrency. How is this possible? Does crypto have legs, hands and has an office, that it is causing the depreciation of Naira. I don't know why Nigeria government is so corrupt that they cannot even think of what they are saying to the public. Nigeria is more of a consuming nation than producing nation, so why wouldn't your currency depreciate, when most commodities are imported. What about bad government, what is the negative impact of a bad government.
I'm not in Nigeria, I'm just referring to a statement by the Nigerian presidential advisor. This event can help us see more clearly the problems in the economy, weak governance and its consequences on the value of fiat. Crypto should be seen as the solution, not the cause, to these problems.

I believe that no one who understands economics will believe these blaming statements  8)

it is however meant for the people who don't understand how money works. as long as the people initially believes its crypto that made the purchasing power dwindles, they've done their job.

the recent news i heard was that the Nigerian government is going to be adopting USD just like the Latin countries using USD.
i still think they are not safe with it. USD is also losing its value since the US government is also printing lots of notes. this is destroying the global economy since the USD is the base currency. all the currency is base on USD price.





Title: Re: Crypto is causing fiat to lose value?
Post by: philipma1957 on March 09, 2024, 10:15:39 PM
Quote from: MrSpasybo on February 25, 2024, 09:39:44 PM
Crypto-currency is being accepted in many places as a form of payment to replace fiat, so sometimes crypto is considered by governments as a risk that affects the right to regulate the national economy. However, I never thought that someone could say that crypto is the cause of fiat's devaluation. At least until Nigeria's Presidential Adviser shared his views.

The adviser argues that cryptocurrency exchange platforms are exacerbating the devaluation of the naira, Nigeria's national currency. He also criticizes Binance, a leading cryptocurrency exchange, for setting exchange rates that undermine the Central Bank of Nigeria's (CBN) authority. The Nigerian government is wary of the volatile nature of cryptocurrencies and the risks they pose to economic stability. Consequently, the government is considering a comprehensive ban on crypto platforms to protect the naira and ensure fiscal discipline.

"Through a series of statements on his X account, Onanuga has called for decisive action against cryptocurrency exchange platforms, accusing them of exacerbating the devaluation of the naira, Nigeria's national currency[1]."

I am not surprised by the series of news related to the war between the Nigerian government and Crypto:
  • Feb 2021: The Central Bank of Nigeria bars banks and financial institutions from dealing in or facilitating transactions in crypto assets, embezzling money laundering and terrorism financing risks[2].
  • Dec 2023: Nigeria's central bank has lifted a ban on transacting in cryptocurrencies, while saying global trends had shown a need to regulate such activities[3].
  • Jan 2024: Nigeria's central bank released has inaugural guidelines for banks opening cryptocurrency accounts, while retaining its ban on them holding or trading in virtual assets on their own behalf[4].
But it seems Nigeria's Presidential Adviser is confusing Reason and Result: The Reason was Nigeria's economic downturn, which led to the devaluation of fiat, Resulting in people choosing to accumulate crypto to protect their assets. The Presidential Adviser may have its own opinion, but NGNUSD data does not lie.

(https://www.tradingview.com/x/2fREPpFb/)

NGNUSD chart shows that over the past decade, NGN has lost 90% of its value compared to USD. I don't think this is a result of the emergence of crypto in Nigeria. In NGN's devaluation scandal, crypto is innocent!

I count this intentional confusion as intentional deception to cause misunderstanding among people with little understanding of the crypto market. For those holding crypto, these lies will have no impact whatsoever, they understand that crypto is helping them protect their assets and avoid the risks of fiat's crazy devaluation.

What do you think about this Presidential Adviser's slander against crypto? Will this become a new behavior that other governments can learn to crack down on crypto?
[1] Nigeria's Battle with Crypto: Presidential Adviser Calls for Crackdown on Exchange Platforms (https://bnnbreaking.com/finance-nav/nigerias-battle-with-crypto-presidential-adviser-calls-for-crackdown-on-exchange-platforms)
[2] Nigeria's banks barred from cryptocurrency transactions -central bank (https://www.reuters.com/article/idUSL1N2KB1Q4/)
[3] Nigerian central bank lifts ban on crypto trading (https://www.reuters.com/world/africa/nigerian-central-bank-lifts-ban-crypto-trading-2023-12-23/)
[4] Nigeria slaps strict rules on banks after lifting crypto ban (https://www.bloomberg.com/news/articles/2024-01-03/nigeria-slaps-strict-rules-on-banks-after-lifting-cryptocurrency-ban)

Oil is causing inflation. Same idea 💡

both are directly related to energy and its so called costs.

I could argue the like of working controllable fusion reactors is the issue.

If we had a portable moveable sun we could access resources all over the solar system.

The argument then would be a time shortage casues inflation. If we could live to 1000 we woukd have cheap time.

you get the idea.
Title: Re: Crypto is causing fiat to lose value?
Post by: Mr. Magkaisa on March 10, 2024, 04:23:15 PM
Quote from: Jamal Aezaz on February 28, 2024, 07:29:39 PM
First thing is that if fiat is printing in a large number without any restrictions then it will gradually loss its value and other thing is that due to inflation fiat currency is losing money but still it is used widely and one cannot ignore its uses.

Cryptocurrency has its own place and success but if cannot devalue fiat because in our daily life we cannot use Crypto but we are using fiat. People are finding new ways of earning so crypto is in their way so that's why they are accepting crypto for earning but they are also using fiat for daily expenses.

         -   We know in this day and age that fiat or cash money is the king for now to get something we like in terms of assets or things. That's the truth. So I doubt that crypto can be the reason for fiat to lose value; as far as I can see, that's not what's happening now. Besides, cryptocurrency, or bitcoin, still stands second to fiat.

Digital currency has become an opportunity for many people around the world to believe in it, but for those who don't, we can't do anything because of their assessment of bitcoin or cryptocurrency.
Title: Re: Crypto is causing fiat to lose value?
Post by: Stompix on March 10, 2024, 05:39:00 PM
Quote from: philipma1957 on March 09, 2024, 10:15:39 PM
Oil is causing inflation. Same idea 💡

But ironically in this case, we're talking of a net exporter and oil producing country, so high oil prices would favor their own currency since they get more $ for the oil they sell, the problem is that demand for other stuff is high and the lack of local production to compensate that.
If it were just energy Nigeria would be fine, it's food and machinery needed for it as well as a hundred other things that are doing this to the forex rates.

Title: Re: Crypto is causing fiat to lose value?
Post by: Dr.Bitcoin_Strange on March 10, 2024, 08:09:57 PM
Well, Nigeria is not the only country in the world where cryptocurrency is being used by citizens, so I don't think their is any other country that have come up with that kind of claim that cryptocurrency is the cause of the devaluation of their fiat currency. Although, every country has it law and discipline, if the Nigeria government actually believe that cryptocurrency or binance is the cause of the devaluation of their precious Naira, they have already ban NGN/USDT on binance, so let's see what happens again since what they see as the root cause have been eliminated for now.
Title: Re: Crypto is causing fiat to lose value?
Post by: taufik123 on March 10, 2024, 11:27:23 PM
Quote from: Mr. Magkaisa on March 10, 2024, 04:23:15 PM
-snip-
Digital currency has become an opportunity for many people around the world to believe in it, but for those who don't, we can't do anything because of their assessment of bitcoin or cryptocurrency.
Yes precisely digital currencies make everything better, increasing many opportunities for advancement of Traditional currencies.
Those who do not believe and continue to oppose valuable digital currencies such as Bitcoin and top altcoins will only say that Cryptocurrencies are scammers.

But seeing how crypto has grown rapidly to date, those who oppose it will not be able to live in peace because crypto is getting bigger.
Title: Re: Crypto is causing fiat to lose value?
Post by: PX-Z on March 10, 2024, 11:57:36 PM
Quote from: SamReomo on February 25, 2024, 09:51:12 PM
Nope crypto isn't causing fiat devaluation. The value of fiat is losing due to various reasons and one of which is the corrupt politicians who hold leadership positions in a country.
Right, fiat have its own problem, governments are the one who are responsible why it got devalues overtime with so many reasons including importing, printing, international debts, etc. Crypto causing fiat to loose value is just so small percentage that it merely affect it or if it is. It only affect because of people using it to purchase goods nothing else.
Title: Re: Crypto is causing fiat to lose value?
Post by: Trongduy on March 11, 2024, 05:50:06 PM
Quote from: Dr.Bitcoin_Strange on March 10, 2024, 08:09:57 PM
Well, Nigeria is not the only country in the world where cryptocurrency is being used by citizens, so I don't think their is any other country that have come up with that kind of claim that cryptocurrency is the cause of the devaluation of their fiat currency. Although, every country has it law and discipline, if the Nigeria government actually believe that cryptocurrency or binance is the cause of the devaluation of their precious Naira, they have already ban NGN/USDT on binance, so let's see what happens again since what they see as the root cause have been eliminated for now.
I think this is just a political accusation rather than an official decision to apply in Nigeria. The spokesperson is the presidential advisor, not the president and maker of crypto laws in this country, so we probably don't need to care.

The purpose of this behavior may just be to divert responsibility for the rising inflation situation in this country, it makes the government immune from criticism by the people.

Other governments can absolutely learn to use crypto as a shield when blamed for the weakening of the domestic economy. Anyway, crypto has no one to argue or defend.
Title: Re: Crypto is causing fiat to lose value?
Post by: Gyrgen on March 11, 2024, 09:46:34 PM
Of course, no, you shouldn’t consider the statement of the president of such a country as something significant. I don’t want to offend Nigeria in any way, but in terms of a percentage of the world economy, it means nothing. And politicians are like that, the majority should speak in slogans because they can't do anything else.
Title: Re: Crypto is causing fiat to lose value?
Post by: MrSpasybo on March 16, 2024, 04:32:23 PM
Quote from: Gyrgen on March 11, 2024, 09:46:34 PM
Of course, no, you shouldn’t consider the statement of the president of such a country as something significant. I don’t want to offend Nigeria in any way, but in terms of a percentage of the world economy, it means nothing. And politicians are like that, the majority should speak in slogans because they can't do anything else.
As I understand it, they are accusing Binance of setting the USDT exchange rate with the national currency, causing the currency to depreciate. This sounds like a conspiracy theory that some force wants to attack Nigeria's finances with the help of Binance and other CEXs. It's really absurd, but I believe that many people still think it's true and are starting to blame crypto.

In fact, from a certain point of view, CEXs are the gateway for people to access USD more easily, through USDT, which causes the currency to depreciate. In my country, there is also a trend of people buying and storing USDT to avoid local fiat depreciation and also earning interest of about 10% per year from Binance or higher if adding LP on DEXs. However, the root cause of the currency depreciation is the weakening of the economy, and the government should act to revive the economy rather than blaming crypto.