Nigerian Naira is Drastically Devalued and news came that it is because of the redesigning of the Naira by CBN and those who had stored a lot of money in their houses are depositing the money in the bank and transfering or converting it to dollar for safety.
Will the devaluation of the Naira have bad effect in the Bitcoin exchange market?
So here's my thought, for the past 1 year I never use my Naira buy Bitcoin or USDT mainly because e dun too cost to buy (asin the exchange rate) and na only sellers dey benefits. I mean to get just common $1.5k na like 1 million plus person go dey spend oh. This massive increase in exchange rate fit dun discourage people from wanting to invest new Naira into the market and this fit be one of reason the trading volume for Nigeria dey decrease. The bear market also follow but the fact say more money is leaving the market than those coming in also get e impact.
Wetin I dey try talk be say, with increase of a currency, e dey normally encourage selling instead of buying so the more the naira dey increase the more e dey encourage people to cash out instead of buying with the hope of rebuying when market crash. This one come mean say new money no dey enter the market and the average trader dey find am hard to buy into the market due to too much increase in exchange rate. Na the only negative effect I dey see be this.