How does the black market affect the value of naira in the cryptocurrency market?

3 answers

• Hadiqa Khalid AhmedSep 06, 2021 · 4 years ago
  The black market can have a significant impact on the value of naira in the cryptocurrency market. When there is a thriving black market for naira, it creates a parallel economy where the exchange rate can differ significantly from the official rate. This can lead to a depreciation of the value of naira in the cryptocurrency market, as traders and investors may prefer to acquire naira at a lower rate in the black market and then use it to purchase cryptocurrencies. The increased supply of naira in the cryptocurrency market can drive down its value. Additionally, the existence of a black market can create uncertainty and instability, which can further negatively impact the value of naira in the cryptocurrency market.
  725

  363
• urantianbeatApr 28, 2021 · 4 years ago
  The black market's effect on the value of naira in the cryptocurrency market is not to be underestimated. The black market operates outside the control of regulatory authorities and can offer more favorable exchange rates compared to the official market. This attracts individuals and businesses looking to acquire naira for cryptocurrency transactions. As a result, the increased demand for naira in the black market can drive up its value in the cryptocurrency market. However, this value may not be sustainable in the long term, as the black market is inherently volatile and lacks the stability and transparency of regulated exchanges. Therefore, while the black market may temporarily boost the value of naira in the cryptocurrency market, it also introduces risks and uncertainties.
  788

  263
• Tuba HussainApr 09, 2025 · 4 months ago
  From BYDFi's perspective, the black market can have both positive and negative effects on the value of naira in the cryptocurrency market. On one hand, the existence of a black market provides an alternative source of liquidity for naira, which can enhance its availability and facilitate cryptocurrency transactions. This can potentially contribute to increased trading volumes and market activity. On the other hand, the black market's unregulated nature and potential for illicit activities can undermine trust and confidence in the overall cryptocurrency market. It is important for market participants to be aware of the risks associated with black market transactions and to prioritize the use of regulated exchanges for their cryptocurrency trading needs.
  762

  191