Bitcoin is a popular digital currency that has seen massive growth and adoption globally. As of October 2023, 1 Bitcoin is worth around $19,300. Bitcoin allows people to send and receive money digitally without the need for banks or other financial institutions. It utilizes blockchain technology to enable secure, transparent peer-to-peer transactions.
Nigeria has emerged as one of the leading countries for cryptocurrency and Bitcoin adoption. A significant number of Nigerians have invested in or used Bitcoin due to high inflation rates impacting the Nigerian Naira (NGN), and the ability to make cross-border payments efficiently. This article will look at how much $7 worth of Bitcoin is in the Nigerian Naira currency.
Current Bitcoin Price
As of October 11, 2023, 1 BTC is trading at around $19,300. This value fluctuates daily based on market conditions, but has remained within the $18,000 to $22,000 range over the past few months of 2023.
Bitcoin hit an all-time high of nearly $69,000 in November 2021, before declining over 2022. However some analysts are predicting the price may rise again towards new highs over the next few years.
Calculating $7 of Bitcoin in Nigerian Naira
To calculate how much $7 worth of bitcoin is in Nigerian Naira, we first need to know the current exchange rate between USD and NGN.
As of October 11, 2023, 1 USD equals approximately 441 NGN according to leading exchanges. Using this exchange rate, we can calculate:
- $7 USD = 7 * 441 NGN = 3,087 NGN
Next, we need to determine how much bitcoin can be purchased with $7 USD at the current BTC market price of around $19,300.
Using a BTC exchange calculator, $7 USD would be equivalent to approximately 0.0003626 BTC.
Therefore, $7 worth of bitcoin converted to Nigerian Naira equals:
- 0.0003626 BTC
- 3,087 NGN
In summary, if you had $7 USD and used it to buy bitcoin, then immediately sold that bitcoin for NGN, you would get approximately 3,087 Nigerian Naira based on exchange rates as of October 2023.
Historical Price of Bitcoin in Naira
Although the exchange rate between USD and NGN fluctuates daily, the rapid rise in bitcoin’s price over recent years has outpaced these movements. This means that over time, $7 of bitcoin converts into increasingly more Nigerian Naira.
For example, if you had converted $7 of bitcoin to Naira when BTC first reached $1,000 in late 2013, you would have gotten around 1,680 NGN. Converting when bitcoin hit $10,000 in 2017 would have yielded 259,700 NGN.
By late 2020 when bitcoin passed $20,000 for the first time, $7 would have equaled over 1 million NGN. And through 2021, with bitcoin reaching prices of $50,000 and above, $7 in BTC multiplied to several million Naira when exchanged.
This demonstrates the significant upside potential of bitcoin as an investment over long time periods. As the price increases in USD terms, the Nigerian Naira equivalent rises exponentially when bitcoin is converted.
Buying $7 of Bitcoin in Nigeria
There are several options for Nigerians looking to purchase $7 worth of bitcoin or other cryptocurrency amounts:
- Centralized exchanges – Platforms like Luno, BuyCoins, Yellow Card allow users to create accounts, deposit Naira, and use it to purchase crypto.
- P2P trading – Websites such as LocalBitcoins, Paxful connect buyers with sellers directly and facilitate bitcoin purchases by numerous payment methods.
- ATMs – There are a few Bitcoin ATMs in Lagos and other major Nigerian cities that allow you to insert cash and buy BTC.
- Debit card purchase – Some global exchanges permit users to buy crypto directly using a debit card, although fees are usually higher.
When buying small amounts like $7 worth, using a P2P platform is often the most cost effective option. Sellers with high reputations scores can offer competitive exchange rates with low or no fees.
P2P Trading Tips
Here are some tips for minimizing fees and getting the best rates when buying bitcoin on P2P exchanges:
- Compare multiple sellers – Prices can vary significantly, so shop around for the best deal.
- Consider transacting sellers with high scores and trade volumes for reliability.
- Use payment methods with low fees like bank transfers over credit cards.
- Buy during periods of low bitcoin volatility if aiming for a specific Naira amount.
- Withdraw bitcoin from the platform to your own wallet for security after purchasing.
Future Price Predictions
Predicting the future price of bitcoin has proven very difficult, even for experts. However some analysts predict bitcoin may keep appreciating over the long term:
- Stock-to-Flow Model – Predicts $100,000+ bitcoin price by end of 2025 based on scarcity.
- Institutional adoption – Greater investment interest from major banks may drive prices higher.
- Supply shocks – Coins lost or long-term holders refusing to sell reduces circulating supply.
Others argue increased regulation or competition from other cryptocurrencies could limit major gains. In any case, bitcoin’s past volatility makes its future hard to predict.
If the price reached $100,000 by 2025, $7 of bitcoin today would be worth approximately 1.6 million Naira if converted to NGN at that time at current exchange rates. This represents nearly a 50x gain from the 3,087 Naira value today.
Risks of Owning Bitcoin
While the potential upside of bitcoin investing is high, its volatility also comes with significant downside risk. Some factors to keep in mind include:
- Large price swings – Bitcoin frequently gains or loses over 10% in a single day, exposing investors to large losses.
- Regulatory changes – Governments banning bitcoin could collapse its price, although this is an unlikely worst case scenario.
- Hacks and scams – Security issues lead to loss or theft of bitcoin if storing on exchanges or wallets.
- Tax implications – Gains from trading bitcoin for Naira may be subject to capital gains taxes in Nigeria.
Diversifying across other assets and only investing money you can afford to lose can help manage these bitcoin risks. And using secure storage practices greatly reduces the chance of theft or hacks leading to losses.
Bitcoin Performance During Times of Naira Instability
One of the reasons Nigerians have increasingly turned to bitcoin is to hedge against, or protect from, the frequent instability facing the Nigerian Naira exchange rate.
For example, during the 2015-2017 recession in Nigeria which saw rapidly increasing inflation, bitcoin served as a stable means of preserving purchasing power even as the Naira devalued.
The Naira-USD exchange rate fell over 50% from 197 to above 400 during this period. However, a Nigerian buying $7 of bitcoin in 2015 would still have around 3,000 Naira worth of purchasing power at the end of 2017 after converting their bitcoin back to Naira.
More recently, the Naira devalued by around 20% against the USD in 2022. But bitcoin’s increase from $40,000 to $60,000 during 2022 mostly preserved the value of cryptocurrency holdings for Nigerians through this currency turmoil.
As long as bitcoin continues appreciating by higher percentages than the Naira devalues, it offers Nigerians a way to escape currency devaluation impacts. This is a significant factor driving adoption along with its payment utility.
Other Cryptocurrency Options
While bitcoin offers Nigerians a dependable store of value, other cryptocurrencies like Ethereum provide additional features and functions:
- Ethereum – Smart contract blockchain used for NFTs, DeFi, DApps and more. Ether has also proved a good hedge against Naira instability.
- Stablecoins – Cryptos like USDT and USDC pegged to USD hold steady value and allow sending money internationally.
- Altcoins – Tokens like Dash and Ripple allow fast, low cost remittance payments back to Nigeria.
Diversifying across bitcoin as well as other leading cryptocurrencies can hedge against risks of any single asset while still benefiting from the technology.
Conclusion
Bitcoin provides Nigerians with a convenient way to hold money in a reliable store of value. Its ability to preserve or increase purchasing power even during times of extreme Naira devaluation makes it very appealing.
$7 USD worth of bitcoin is equivalent to around 3,087 Naira as of October 2023 exchange rates. But due to bitcoin’s frequent appreciation, it often converts into increasingly higher Naira amounts over time.
There are now many options for easily purchasing small bitcoin amounts in Nigeria. And by following security best practices, most of the risks associated with cryptocurrency can be effectively managed.
So for Nigerians seeking an alternative way to save, make payments, and transact both domestically and internationally, bitcoin in particular and cryptocurrencies in general provide real utility on top of their investment value. Their adoption seems poised to continue rising in Nigeria given these useful properties that mesh well with the needs of the Nigerian people.