What Can We Learn From 60% Bitcoin Premiums in Nigeria?

Nigerians are paying 60% above the spot price for Bitcoin. This is what happens when people lose faith in monetary policy.

Scott Debevic

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Photo by KOSTA MEDIA on Unsplash

I live in California, where everything is more expensive. Insurance, taxes, food, entertainment, gasoline, real estate…everything costs more than most of the country. In exchange, I haven't needed to own or wear a jacket for decades, and I can take walks outside 90% of the year. In addition, there are a variety of ethnicities, things to do, and places to visit. So (to me), even though I pay a premium to live in California, it's worth it.

I have a choice on whether I want to pay this premium in exchange for sunny weather, a large economy, and diversity. If I wanted, I could move to most other states and sacrifice some of the amenities I appreciate about California. It's nice knowing that I have a choice.

But what happens when we lose our choice? What if the government said that you have to stay in the same state for the remainder of your life and you have until a specific date to choose which state you want to spend the rest of your life in? You would see premiums rise significantly for real estate in certain states and slide quickly in other states.

Imagining the government enforcing a scenario like this is outlandish. The government has control, but it doesn't have absolute control. This applies to most things. Unfortunately, money isn't one of them. Regarding our fiat currencies, the government has 100% control of the monetary system.

Luckily, I live in the USA. Our money is the world's reserve currency, and we get to create money in which the world sees immediate value. However, it's not something I feel comfortable taking for granted. The world hasn't always viewed the dollar as the world's reserve currency, and arguments can be made that the dollar will only remain the world's reserve currency for a while.

Nigerians are losing their choice.

Nigeria is the largest economy in Africa. It's the seventh most populated nation, with over 200 million people. And although statistics vary, Nigerians are amongst the leaders in Bitcoin adoption. But…

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Scott Debevic

My goal is growing wealth and earning passive income. Mainly focused on Bitcoin and crypto. Feel free to contact me at: scottdebevic@gmail.com