What Bitcoin, Tulip Mania and the Nigerian Stock Market Share · Global Voices

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By N. M. Bassey

Everybody desires more loan: beggars, trainees, thieves, workers, billionaires– everybody. Cash figures out the options offered to you, the locations you can live and the things you can or can refrain from doing. So humans are always attempting to get more cash, more resources. Financial experts call it the law of unlimited desires. People constantly want more and our desire is insatiable.To get more money, we

do a range of things: we work, we take, we beg. However more honourably, and sometimes more effectively, we invest. Investments have the capability to alter people’s monetary futures and raise them out of hardship. Businesses supplying products and services have done this for the longest time, however the paradigm has actually moved to show that the most important investments are those that require your time or guidance, the ones where your cash works for you.Enter real

estate, products, the stock market, forex trading and most just recently, as proof, they encouragedcountless people to buy the Nigerian stock exchange. Individuals started to speculate on a short-term buy and sell basis, pouring millions into stocks with little assessment of their success, asset base or previous dividend/ reward share records. Encouraged by the stock market’s rising graph, even more speculative financiers gathered cash, with some individuals going to far as to take loans to fund financial investments in a rash of dubious Preliminary Public Offerings.In less than a year, the Nigerian stock exchange crashed in incredible style. From a high of 13.5 trillion nairas in March 2008, the market capitalization crashed to 4.6 trillion Naira

in January 2009. Numerous stock brokerage workers lost their jobs, firms were shut down and pension funds were not able to fulfill their obligations.Notes and Lessons from our 3 Cases Early Adopters normally take advantage of speculation A product without intrinsic worth is exceptionally volatile People are always trying to generate income from others and will ride on any wave to provide dubious’investments’When something is in the news/at an all-time high, it may

  • not be the very best time to buy it The more you comprehend about your investment, the much better Don’t speculate with cash you
  • cannot afford to lose Know when to walk away– do not be greedy!BEWARE of the rash of coins flooding the Web, particularly those requesting for”a little donation “At the time of composing, Bitcoin is trading for$ 9,000-10,000, about half of its worth 2 months earlier. There is a lot of panic amongst investors
  • , with those who purchased lower rates– the price in January 2017 was$960– costing a profit and those who purchased above $8,000 gnashing their teeth.Experts are divided on the future of Bitcoin. In 2014 the World Bank compared it to a Ponzi scheme and others have actually called it an unsafe worldwide scam, while economic experts like John Lanchester have saw its future more hopefully. Personally, I am looking for ways to buy things with a clear intrinsic value, like power generation plants for Nigeria, instant weight-loss tablets, bikes created for fat people, and yes, blockchain, however for books. Anything with a clear unmet demand.I remain away from things I do not comprehend, and I am discovering how to recognize that when a thing is being hyped or in the news or being purchased up by everyone might not be the finest time to do very same. I am discovering to examine before I invest, rather of outsourcing my monetary knowledge base.When Bitcoin was selling at the all-time high of$19,783 in December 2017, I aimed to warn people of the possibility of a crash. Among the individuals I cautioned discounted the concept and called it impossible. I wonder exactly what he thinks now.N. M. Bassey is a Nigerian blogger and commentator. She blogs at The Naija Writer, and tweets at @StNaija.