Our Nigerian Naira is not far behind the inflation of fiat currencies worldwide.
If we compare the price of Naira and Gold in 2015, we can see that -
In 2015, the average price of one ounce of gold was $1070, which means that in 2015, it would have taken about (1÷0.005059)×1070=211 500 Naira to buy one ounce of gold. [According to Exchange-rate.org, the exchange rate of Naira at that time was 1 Naira=$0.005059]
Exchange rate history/ngn-usdt
In 2015, the average price of Bitcoin was - about $300. That is, if someone wanted to buy 1 BTC at that time, he would have had to count Nigerian (1÷0.005059)×300=59 300 Naira.
Today, the price of gold is $3340 per ounce. If someone wants to buy an ounce of gold today, he will have to spend (1÷0.00065)×3340=5 138 460 naira in Nigerian naira. Today, the exchange rate for naira is 1 naira = $0.00065.
Central Bank of NigeriaToday, the price of a bitcoin in Nigerian naira is (1÷0.00065)×119 000= 183 076 920 naira.
That is, if someone had bought an ounce of gold in 2015, he would have made a profit from it today (5 138 460-211 500)= 4 926 960 naira. Which is 23 times more than the naira he invested.
And if he had bought Bitcoin then his profit would have been (183 076 920-59 300) = 183 017 620 Naira per day. Which is more than 3086 times the Naira he invested.
From the above, it can be understood how much the Nigerian Naira is being devalued.
In such a situation, to prevent this devaluation, we should keep converting our Naira into Bitcoin. Since the supply of Bitcoin is limited, the possibility of Bitcoin being devalued is very low. At the same time, Bitcoin is currently considered part of the strategic reserve by the whole world, so it is almost certain that the price of Bitcoin will increase much more in the future.
What is your opinion on this? Do you think Bitcoin can prevent inflation and protect our Naira from devaluation?