A former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has compared the fall of cryptocurrency in recent weeks to the crisis in the Nigerian Stock Exchange (NSE).
The cryptocurrency market has been experiencing a torrid time since Tesla founder, Elon Musk, announced that the company would no longer accept Bitcoin as payment option.
Musk’s comment in mid-May led to a sharp decline in the value of Bitcoin, the most popular cryptocurrency in the world.
It has since dropped from $50,000 to below $35,000.
Bitcoin lost about $15,000 in asking price in three weeks and currently trades at $36,030.
The development had caused sentiment against Bitcoin to spread across.
The CBN governor, Godwin Emefiele, had continued to blame the crash on fraudulent activities.
However, Moghalu likened the crash in Bitcoin to regular occurrence witnessed in the stock market.
He said same outcome has been recorded in other financial assets as investment remains a risk.
He said: “Cryptocurrency is taking a beating in financial markets. This is the case for most financial assets such as company shares on stock exchanges. It’s always a risk, but in Nigeria it remains a hedge against inflation and naira devaluation for many. This dip may be time to buy.” Moghalu said.
The stock market in Nigeria has been on a decline since the beginning of the month with over N900 billion wiped off the bourse, according to the month’s market analysis.
Join the conversation
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...
INVESTIGATION….N.3bn down the drain: Why water projects for Enugu communities don’t work
In this concluding part, ARINZE CHIJIOKE talks about some of the projects that are serving the people and how various WASH programmes have failed to tackle...
INVESTIGATION…PARKVIEW ESTATE: Exclusive images of how billionaire property developer incurred Lagos govt‘s anger
Many have seen the demolished building, but not many know the circumstances that led to the teardown of the about...
INVESTIGATION… N.3bn down the drain, as Enugu communities suffer from dry taps
In November 2020, three organizations and the Enugu State government celebrated the completion of N300 million worth of projects that were expected...
INVESTIGATION… How herdsmen crisis compounds woes of already deprived Ogun communities
Earlier in January, the Nigerian media space was awash with reports of violence between herders and farmers across the country....