bitcoin
Bitcoin is the first and largest cryptocurrency, a digital asset with a fixed maximum supply that no government controls.
In plain English
Bitcoin was created in 2009 by someone whose real identity is still unknown, which tells you something about how strange and how serious this thing is at the same time.
Its central idea is scarcity. There will only ever be 21 million bitcoin. Nobody can decide to make more, because the rule is written into the software that thousands of independent computers run. In a world where governments print money freely, that fixed limit is the entire argument for it.
This is why supporters call it digital gold. Something whose supply cannot be inflated away by anybody's decision.
The counter argument is equally honest. It produces nothing. It pays no dividend, earns no rent and generates no profit. Its price rests entirely on what the next person will pay, which is why it can fall 70 percent and has done so more than once.
In Nigeria it has been used to preserve value against the naira and to move money across borders, and those are real uses by real people.
If you hold it, hold a small portion, hold it for years, and never hold money you will need.
You put 5 percent of your investments into bitcoin. It falls 70 percent in a year. Your total portfolio drops by 3.5 percent and your life is unchanged. It then triples over three years and adds meaningfully. Both outcomes were survivable, which is the only reason the position was sensible.
Questions people ask
Why is bitcoin valuable?
Because its supply is fixed and cannot be increased by anyone, and because enough people agree it has value. Both parts of that sentence matter, and the second is the fragile one.
How do I buy bitcoin in Nigeria?
Through regulated exchanges, mindful that the regulatory position has changed several times. Check the current rules before you begin.
Can I lose everything?
Yes. Through price falls, through losing your keys, or through using a fraudulent platform. Never hold more than you could lose entirely.
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