Following the Nigeria Crypto ban debate a knowledge deficit becomes abundantly clear -not many people understand what Crypto really is.
(The same old arguments that obtained during the transition from gold standard to Fiat currency are rehashed). 1/
The foundation of Cryptocurrency or digital currency is blockchain technology which uses distributed public online ledgers based on strong cryptography to secure transactions (think a giant computer database secure to the Nth power and a million times more so than Fiat vaults) 2/
But don’t be confused by all the marvelous complexity and jargon. Just think of it as your company ledger but instead of only your CFO making the journal entries your entire staff members have their own set of keys to make entries. 3/
..(having validated their own records and being entitled to do so) and no single person has the power to change the entries so they’re there (ie persist) for all eternity) 4/
But how is Crypto currency created? Well every Bitcoin (a form of Crypto, there are various Cryptos- Ethereum, Litecoin, etc ) is mined. Mining? Yes. You solve complex cryptographic equations by using your computers which requires a massive amount of power 5/
Your output is added as a transaction block or record to the public ledger (Blockchain remember?).
Wow! You mine them? Yes. Much better than having your grandpa run a printer and print more and more cash to finance expenditures he cannot afford (giving the hot printing press fancy names like “Quantitative Easing”) which value depreciates the moment you receive it, isn’t it? 7/
The Naira cannot hold its pee. Everyone and their choir singing aunt knows that.
But be kind. It shares this incontinence with its counterparts- other currencies 8/
The mining process is so unbelievably complex only few tokens or coins are available so people trade the limited quantities available (just like people trade stocks but no one calls stock traders evil speculators, well, maybe only those of us who do not have blood red Lambos). 9/
You’re a busy person, so
just remember these two principles of political economy.
I) 4 properties make a medium of exchange:
a) Durable
b) Fungible
c) Divisible
d) Portable

II) Fiat currency is a product of the nation state.
Massive egos are involved.

That’s it. 10/END

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More from @ChifeDr

12 Feb
Has Fiat currency outlived its age?
A digital technology age requires a digital mode of transaction.

It’s tendency to depreciate rapidly makes it a poor medium of exchange.
It ruins nations and forces people into overnight bankrupt with loads of cash in their bank accounts 1/
2/ As an illustration, consider the Naira and the unbelievable erosion of value that has happened to it. N20 in my day was more powerful (more purchasing power) than possibly your N25k of today - all in one generation.
3/ All consensus realities are by their nature, fiction.
And Fiat is the greatest fiction ever invented. Why is N1,000 note worth N1,000? Because we say it is. That’s it.
Read 7 tweets
27 Jan
Even the most partisan amongst us will admit, without the blinders that those peculiar sentiments afford them, that PMB has neither the intellectual capacity nor the enlightenment and sophistication to meet the rigors of superintending a body politic as complex as Nigeria. 1/
And even in the fondest moments of their self conceit, they’ll concede that Nigeria is not presently governed.
Our age is modern, its currency technology. Wealth creation in the 21st Century requires a leader fit for purpose. 2/
But power produces a toxic high in Nigeria by which the lazy government-must-provide individuals who live at great public expense, the grifters and conmen and the poorest amongst us, i.e those afflicted with the poverty of intellect, swear by. 3/
Read 5 tweets
18 Dec 20
(For young men only)

I’m sorry if nobody taught you this earlier (if you were, great). Our own parents would not countenance discussing such a subject but I’m you OG and it’s important.

So, lets start with a simple routine: Shaving.
Not your face. The nether regions
Do you notice that from time to time (perhaps every week or two) your lady disappears into the bathroom and spends an extended length of time there? No, she’s not calling another man. She’s shaving her legs and privates.
Do you shave yours? (No, no not the legs pls).
Why not? 2/
Do you know how stinky your balls and the area are? (hair traps odor). So here’s the thing: you need to clean up down there at least once a month Grab a shaving cream and razor, bend over, hold your thing with one hand for balance and start mowing- the balls and area around it
Read 4 tweets
6 Dec 20
The Central Bank of Nigeria (CBN) released a regulatory bombshell on November 30 mandating that all dollar remittances into Nigeria will be received in dollars only.

The circular:

It’s brilliant. Let me explain:
The new policy means that ALL money transfer companies will now need to make completely different settlement rail arrangements.
Since all dollars transferred must be received by local banks only, they must setup and fund settlement accounts with the local banks. 2/
Whereas before they only needed to find a swap partner - a person or entity who will give them local currency and take their dollars offshore.
This meant the physical cash never made it into the country.

And this is the crux of the problem. 3/
Read 7 tweets
28 Nov 20
I believe “Eat the Rich” is a mere antique trope propagated to highlight the urgent need for action regarding the third member of the triumvirate of government’s traditional role, i.e:
3/ )To Promote Equality (the others are
1) Provide security 2) Provide public goods). 1/
Promoting Equality (for the purpose of social cohesion) has become a very important role of government and indeed an imperative in the last and present century since the introduction of technology greatly accelerated progress and at the same time reinforced inequalities.
Regarding your essay on Karl Marx and Adam Smith, the essential difference between their philosophies hung on whether to accord capital or labor a greater of parity of esteem (supremacy) in the determination of value (Capital vs Labor theory of value).
Read 27 tweets
29 Apr 20

“This is the time for the country to start talking about going back to regional government and slashing all the costs of a federal system which it clearly cannot afford.” 1/
“A country with a developmental agenda cannot go anywhere with over 500 federal MDAs, 36 state governments, 36 state houses of assembly and a unrepresentative national assembly all financed by crude oil money.”(FN) 2/
I believe the above viewpoint (which now ought to be the prevailing sentiment in the country) represents the best opportunity out of Nigeria’s current difficulties. What makes it so? It’s simple. The country is broke and the prospects for recovery are not fair. 3/
Read 13 tweets

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