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Our discussion today will premise the definition of money as promise with a claim. Whether we choose to use barter, cash, cheque or cards, unless there is a claim, we call it fake or dud. That said, cryptocurrencies leverage on same principles while using cryptography to producevirtual coins, which are basically exchanged on decentralized computer networks between individuals and organizationsthrough virtual wallets. Such transactions are publicly stored on distributed, tamper-proof ledgerspopularly known as blockchains.

The open-source framework stalls coins from being duplicated and alsoremoves the need for a central regulator or authority like a bank to validate each transaction. The Bitcoinwas created in 2009 by thepseudonymous software engineer Satoshi Nakamoto, and remains the most prominent cryptocurrency, with a total value exceeding $1 trillion. The Ethereum, which is the second-most recognized, has been widely accepted in recent years and operates on the same general principles. 

Users of cryptocurrency send valuebetween digital wallet addresses, whichare then recorded into “blocks,” and confirmed across the network. Blockchains do not store real names or physical addresses, but only the transfervalue between digital wallets, and thus allows anonymity of users.

Cryptocurrencies and blockchains have led to the creation of “decentralized finance” or DeFi businesses and projects. This is basically the cryptocurrency version of Wall Street, as DeFi aims to offer people access to financial services, such as borrowing, lending, and trading, eliminating the need for legacy institutions such as banks that take large commissions and other charges. Smart contracts implement transactions once certain conditions are met. DeFi is gaining acceptance as investors put tens of billions of dollars into the sector.

Moreover, there is growing need for cryptocurrency exchanges that allow people and organizations spot trade their cryptocurrencies for others. Some are even currently looking at offering second nature currency collection platform to give a wider acceptance and reach to these currencies. Some of the top cryptocurrency exchanges include:

Binance (www.binance.com – raised $35m in 10 funding rounds): is a cryptocurrency exchange platform that combines digital technology and financein their service offerings to platform users. Doing a volume of over $25b in a 24hr period, they have gone on to acquire CoinMarketCap for $400m and swipe.io among others they have completed. It only started in 2017 and currently tops the list of crypto exchanges. Imagine what a figment of imagination becomes in only 4 years! Indeed astounding!!

Coinbase Exchange(https://www.coinbase.com/about$547.4m in 18 rounds): Founded in 2012, it is currently doing over $5b in a 24hr exchange period. They believe in afair, accessible, efficient, and transparent financial system powered by crypto. They started with the radical idea that anyone, anywhere, should be able to easily and securely send and receive Bitcoin. Today, they offer a trusted and easy-to-use platform for accessing the broader cryptocurrencies to over 68m verified users.

FTX Exchange (https://about.ftx.com/ – has raised $1.3b in 5 funding rounds) is a cryptocurrency exchange company that develops a mobile trading platform.They started only in May 2019 and pride themselves as a cryptocurrency exchange built by traders, for traders. They offer innovative products including industry-first derivatives, options, volatility products and leveraged tokens. FTX strives to create a platform that is robust enough for professional trading firms and intuitive enough for first-time users.

KuCoin (www.kucoin.com – raised $20m is 1 funding round) is doing over $4b volume in a 24h period. The KuCoin Exchange opened for cryptocurrency trading in September 2017 and located in Seychelles. They place emphasis on the quality of the projects listed based on a research department that scours the blockchain industry for quality projects. The company provides an exchange service for users to conduct digital asset transactions securely and efficiently. Over time, KuCoin aims to provide long-lasting, increased value to its more than eight million registered users, in over 100 countries. In November 2018, ‘The People’s Exchange’ officially partnered with IDG Capital and Matrix Partners.  

Some other crypto platform providers are:

Yellow Card (www.yellowcard.io – raised $16.5m in 3 funding rounds): They offer a platform to buy and sellcryptocurrencies online with bank transfer, mobile money and cash. Yellow Card prides itself as the easiest way to buy and sell Bitcoin, Ethereum and Tether instantly at the best rates with zero fees.

Luno (https://www.luno.com/ – has raised $13.8m in 4 funding rounds) In 2013, they set out to empower billions of people across the world by upgrading them to a more open, efficient, and inclusive financial system. To do that, a platform was built to make cryptocurrencies such as Bitcoin and Ethereum easily accessible to everyone. Luno believes that decentralized cryptocurrencies like Bitcoin and Ethereum will fundamentally change how the world views and uses money. As early pioneers in the industry, theyfeel a sense of duty to bring theknowledge and excitement to the world as best they can.

Although, to assert sovereignty, severalcentral banks, including the US Fed, are considering creating digital currency, known as central bank digital currency (CBDC). It promises the speed and other advantages of cryptocurrency leaving out the associated risks. A lot of countries, representing over 90 percent of the global economy, are considering the creation of CBDC. China started a digital yuan in 2019, which is now used for billions of dollars of transactions.Such thought around a digital currency has led Facebook to announce it would come up with its own currency called Libra. This means that you too can create your own currency. All that the crypto does is to help humans realize how truly powerful and invaluable we are! We can either waste this potential or train it.

Considering the foregoing, it is worthy of note that the market in Nigeria is huge for cryptocurrencies, CBDC or whatever you come up with (your own currency); and the opportunities are almost endless when the entrepreneur decides to dream BIG. What position should one take in such a buzz that has come to stay? Digital is the future of money and has revolutionized how transactions are carried out, while ensuring high levels of security. In terms of ones posture, it is definitely always better to take calculated risks, as nothing ventured is nothing accomplished. If all one does is to store away the current equivalent of One million Naira (N1m), same could double even quadruple within the next three years. You could also start your own exchange as that allows a bit more control and access to trading fees among other charges. I recall buying 4 bitcoins four years ago. However, I got into trading with same and gained 2 more. At some point, I became careless and lost all 6. Imagine I had held it for just four years. At that time, it cost a little over N700 thousand per coin. Today, a bitcoin is worth over N25m, imagine that multiplication factor in only a space of 4 years.

In conclusion, I strongly believe that cryptocurrencies will continue to gain wider acceptance due to the cost savings and anonymity it affords users; and that one global exchange should be created out of Nigeria to serve the global space. Some hotels now accept crypto as a means of settlement and with more people filling up the gaps, acceptance will continue to grow. Businesses need to begin to tap into the future of money as they carry out their transactions. It is however, no news that Central Banks all across the world are trying to find ways to regulate cryptocurrency transactions. I am open to conversations that further on the foregoing and thank you for your time investment, yours in tech, Olufemi Ariyo.

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