I see that you are a newbie, welcome. To your question. If you were in a country where most businesses have no issues accepting Bitcoin as a payment option,then I would say you should go ahead but this is not the case in Nigeria.
In Nigeria one of the aims of the new cash redesign policy according to the Central Bank of Nigeria is a cashless economy. This hasn't been achieved because we still have people who are unbanked, our bank internet servers needs to be upgraded to handle several requests and many more. Besides not everyone uses or accepts Bitcoin I'm exchange for goods or services. In my estimation, it is about 0.1% of the population that do.
So before you make the big move, ask yourself
- how many businesses would accept Bitcoin for payment?
- would I need to convert my Bitcoin into cash, the Nigerian currency before I can make any purchase?
- can I pay the cab/Uber driver in cash?
The answer to the question will tell you what to do.
What I will tell you is to put some percentage in Bitcoin, some percentage in precious metals, in real estate and in stocks(if you wish). As a newbie remember, invest only what you can afford to lose.
Topic: I want to convert my money to bitcoin because of our current banking system in m - page 2. (Read 278 times)
March 03, 2023, 10:34:20 AM
March 03, 2023, 10:21:34 AM
Ops at the moment it's better to hold all your balance in bitcoin and in your personal wallet with private keys, exchange is not recommended.
Hold your balance in bitcoin and spendable amount on an exchange wallet where you can easily convert and send to any bank card for pos withdrawal, at this time were banking transaction both cash and online transfers in Nigeria is down decentralized finance is the way to go and at the moment quite a good number of Nigerians are already benefiting from all this.
Hold your balance in bitcoin and spendable amount on an exchange wallet where you can easily convert and send to any bank card for pos withdrawal, at this time were banking transaction both cash and online transfers in Nigeria is down decentralized finance is the way to go and at the moment quite a good number of Nigerians are already benefiting from all this.
March 03, 2023, 10:19:51 AM
Converting in Bitcoin is the best thing to do if you are uncertain on the future of your fiat money. But since your concern is the delay to access your funds is it will be just the same with Bitcoin if you will plan to spend it since Bitcoin is not a legal tender on your country while you still need to convert it to fiat when you will use it? The problem is your banking system delays of processing your cash which means this problem will be the same on crypto the moment you will use it to purchase goods in your country.
For safety precautions, Converting to Bitcoin is the right thing to do if you are scared that your fiat will be turn into shit right after the election.
For safety precautions, Converting to Bitcoin is the right thing to do if you are scared that your fiat will be turn into shit right after the election.
March 03, 2023, 10:07:44 AM
I want to convert my whole cash in my bank account to bitcoin but don’t know if is a good idea for me or not.
You can not convert your Naira to Bitcoin directly with your bank account. You must use your Naira to buy Bitcoin, it's not convert.If it is your first time to buy Bitcoin, let's try with small Naira as your first practice. If it goes well, you don't make any mistake, you can proceed a next one with bigger value.
Buying Bitcoin then storing it in non custodial wallet like Electrum wallet that is free and does not need big storage space in your computer. It is available for mobile devices too.
https://electrum.org/#download
[GUIDE] How to Safely Download and Verify Electrum
March 03, 2023, 10:02:59 AM
So now I want to convert my whole cash in my bank account to bitcoin but don’t know if is a good idea for me or not. I know in crypto world, it will be easy to access my money but the issue is, will my money be same value when I invest all of it in bitcoin .
I don't know how the adoption of Bitcoin is in your area but mine is quite low so if I should convert all my money to Bitcoin I'll end up not being able to purchase anything because no one accepts Bitcoin as a payment method in my side, so I'll advice that you look for a means to withdraw your money from the bank we have POS services that does that without you having to visit your bank although some charges are added it will be better to have cash than to put your money in banks that restricts how you go about with your spending.
If not for online business, to receive funds from P2P trades and also because I need to debit card to buy coins online I don't see any use for bank.
March 03, 2023, 08:07:44 AM
Do not forget that the only restriction here is on physical cash use, you can use mobile transfer to nearly an unlimited amount, but the banking network is usually a problem and quite a lot of merchants prefer payment with cash.
Is there no other channel for payments over there? In my country, we have various digital fiat wallet that doesn't necessarily rely on banks to process the transaction. I'm somewhat surprised that it is not the same there since online payment has become popular. Not the ideal solution but can be an alternative for small spending, definitely don't use them to store most of your money though. If Bitcoin stores are easily accessible, this would be the best time to use them for daily needs.Bitcoin doesn't work like that because Bitcoin isn't Proof Of Stake, it's Proof Of Work where there's a maximum supply. The price is determined from demand and supply.
Whether a coin use PoS or PoW has no correlation to its max supply afaik, as it's a number that can be changed. How easy or hard it is to change will depend on many things, including but not limited to community consensus, how distributed the network control is, etc. Even if you hold PoS coins/tokens, you also need to do something if you want passive income.
March 03, 2023, 07:41:17 AM
I'm not aware of what's currently happening in Nigeria. However, banks rejecting you access to your money is one of the biggest motivations I'd say to finding an alternative. At least, with Bitcoin they'd never be rejected their right to their money. Obviously, paying with Bitcoin, and using Bitcoin really does depend on your local situations. Although, cities tend to offer a decent amount of services, and goods for Bitcoin. So, if you live somewhere which Bitcoin is popular in you can probably get by. Potentially, renting or mortgages would be the only limiting factors.
The CBN recently rolled out new cash/withdrawal policies, this created cash scarcity and restrictions to physical cash use, not to get into too much details but it has resulted in hardship for the people of Nigeria. Of course this is a very good reason to use Bitcoin, because with Bitcoin no institution can restrict your money: it is permissionless, but how do you spend Bitcoins in Nigeria, it is almost impossible, you can't find merchants that accept Bitcoin for payment, and if you want to convert your Bitcoin to cash through P2P, you receive your fiat in your bank account, and face the same problem over again. OP is considering converting all their money to circumvent this problem, but it doesn't solve it because they still do not have cash. What OP should is to convert a part of their money to Bitcoin and leave the rest of it in their bank for spending.I think I'd prefer to hold my wealth in my hands, than a bank that's rejecting access to your money. If you can't withdraw your own money, then that's a red flag too me that the banks struggling or abusing it's power. You should always be able to access your own money.
We share absolutely the same view, i was only pointing it out to OP that converting all their money into Bitcoin doesn't solve the issue of available cash for spending in Nigeria. Do not forget that the only restriction here is on physical cash use, you can use mobile transfer to nearly an unlimited amount, but the banking network is usually a problem and quite a lot of merchants prefer payment with cash. 
March 03, 2023, 07:39:49 AM
Because literally in banking system for example, if you have $5000 that will be the value in 3 to 5 months and will add a little interest in it so my question is- I don't fully know how bitcoin works. Is it the same way with the banking system? Will I get more value or less value in future times?
Even you get little interest from your saving account, but if you calculate with the inflation rate, I believe the inflation rate is higher than your interest. In the next year your will earn $20 interest from your $5,000, so it would be $5,020. But the value of your $5,020 isn't same like $5,000, it might already become $4,970. So it's mean you're lose the value.Bitcoin doesn't work like that because Bitcoin isn't Proof Of Stake, it's Proof Of Work where there's a maximum supply. The price is determined from demand and supply.
March 03, 2023, 07:29:31 AM
This does not solve your issue in anyway: what you lack is physical cash as it has become difficult to withdraw cash from the bank due to the recent CBN policies on the naira, thus even if you exchange all your naira for Bitcoins, you still do not have physical cash, but Bitcoins in your wallet.
Since you don't know how Bitcoin works, i'd advice you hodl your money in the bank until you understand what you are doing to avoid loss.
I'm not aware of what's currently happening in Nigeria. However, banks rejecting you access to your money is one of the biggest motivations I'd say to finding an alternative. At least, with Bitcoin they'd never be rejected their right to their money. Obviously, paying with Bitcoin, and using Bitcoin really does depend on your local situations. Although, cities tend to offer a decent amount of services, and goods for Bitcoin. So, if you live somewhere which Bitcoin is popular in you can probably get by. Potentially, renting or mortgages would be the only limiting factors. Since you don't know how Bitcoin works, i'd advice you hodl your money in the bank until you understand what you are doing to avoid loss.
Since you don't know how Bitcoin works, i'd advice you hodl your money in the bank until you understand what you are doing to avoid loss.
I think I'd prefer to hold my wealth in my hands, than a bank that's rejecting access to your money. If you can't withdraw your own money, then that's a red flag too me that the banks struggling or abusing it's power. You should always be able to access your own money. March 03, 2023, 07:27:12 AM
This does not solve your issue in anyway: what you lack is physical cash as it has become difficult to withdraw cash from the bank due to the recent CBN policies on the naira, thus even if you convert all your naira for Bitcoins, you still do not have physical cash, but Bitcoins in your wallet. It even becomes worse in this case because you can hardly find any merchant accepting Bitcoins for payment in the country.
I don't fully know how bitcoin works. Is it the same way with the banking system? Will I get more value or less value in future times?
Since you don't know how Bitcoin works, i'd advice you hodl your money in the bank until you understand what you are doing to avoid loss. March 03, 2023, 07:25:15 AM
Nope, you won't get any interest. However, if you anticipate the Bitcoin price to go up, then technically you would gain more in terms of converting it back to fiat. However, if you have 1 Bitcoin, and don't add to that it's going to stay at 1 Bitcoin forever.
Technically, Bitcoin is deflationary in the long term, and you could probably make the a somewhat confident assumption that it will continue to rise in terms of Bitcoin to fiat valuation. However, most interest on fiat currencies isn't worth it anyway, and usually the inflation rate is higher than the interest rate so you aren't gaining anything to begin with. If interest rates is what's keeping your money in the bank, I'd reconsider as it's worthless. Interest rate means absolutely nothing unless you have a ton of money which can make a whole lot of money in a year or so.
Technically, Bitcoin is deflationary in the long term, and you could probably make the a somewhat confident assumption that it will continue to rise in terms of Bitcoin to fiat valuation. However, most interest on fiat currencies isn't worth it anyway, and usually the inflation rate is higher than the interest rate so you aren't gaining anything to begin with. If interest rates is what's keeping your money in the bank, I'd reconsider as it's worthless. Interest rate means absolutely nothing unless you have a ton of money which can make a whole lot of money in a year or so.
March 03, 2023, 07:24:18 AM
The amount of bitcoin you have in your wallet will remain unchanged. 1 BTC will be always 1 BTC, but the value of your bitcoin in fiat currencies may change over time.
Take note that what you get as interest from the banks isn't really a profit if you consider the inflation rate.
Take note that what you get as interest from the banks isn't really a profit if you consider the inflation rate.
March 03, 2023, 07:05:47 AM
I live in Nigerian and since our presidential election,the our local fiat became scarce due to change in the newly redesign of the currency which makes it difficult for most people here to get physical cash for business and daily transactions because the banking system is overloaded with too many internet transactions making it hard for me to access my cash. So now I want to convert my whole cash in my bank account to bitcoin but don’t know if is a good idea for me or not. I know in crypto world, it will be easy to access my money but the issue is, will my money be same value when I invest all of it in bitcoin .
Because literally in banking system for example, if you have $5000 that will be the value in 3 to 5 months and will add a little interest in it so my question is- I don't fully know how bitcoin works. Is it the same way with the banking system? Will I get more value or less value in future times?
Because literally in banking system for example, if you have $5000 that will be the value in 3 to 5 months and will add a little interest in it so my question is- I don't fully know how bitcoin works. Is it the same way with the banking system? Will I get more value or less value in future times?
Jump to: