As the month of September comes to a close, Nigeria’s Security and Exchange Commission
(SEC) recognizes cryptocurrencies as securities while the Bitcoin network passes 18,500,000 in
circulation and a Canadian software firm put 40% of its cash reserves into Bitcoin.
Nigeria Securities and Exchange Commission Regulates Cryptocurrency
Nigeria’s Securities and Exchange Commission (SEC) in a landmark announcement recognized
cryptocurrency and digital currency as securities. The regulatory body will use its regulatory
powers to decide on the future of cryptocurrency use in the nation.
According to SEC,
“Digital assets offerings provide alternative investment opportunities for the investing
public; it is therefore essential to ensure that these offerings operate in a manner that is
consistent with investor protection, the interest of the public, market integrity and
SEC plans to register and approve all digital assets as commodities but will not hold
responsibility for spot trading and related transactions involving tokens.
“The general objective of regulation is not to hinder technology or stifle innovation,
but to create standards that encourage ethical practices that ultimately make for a
fair and efficient market.”
Bitcoin Passes 18,500,000 in Circulation
Meanwhile, the Bitcoin network passed 18,500,000 in circulation. Charts show that there may
be only 2.5 million BTC left to mine on the Bitcoin network with half being mined over the next
four years. Experts suggest that 1,500 BTC is lost every day and that less than 14 million coins
will ever circulate.
Three halving events have already taken place since the genesis block in 2009. The previous
halving event in May 2020 was followed by increases in the price of Bitcoin. Miners on the
network will continue to be rewarded until the final Bitcoin has been mined. After the final Bitcoin
is mined, prices of the cryptocurrency are expected to rise further as demand for it pushes up.
Mining is a process that allows for transactions to be added to the blockchain. It serves as the
engine room of the Bitcoin blockchain, dictating the tokenomics and security for users. Speed
and cost of transactions are critical factors that determine the demand for Bitcoin. For this
reason, it is really important for users of Bitcoin to understand how miners affect the Bitcoin
With adoption rates for Bitcoin on the rise and the introduction of Central Bank Digital Currency
(CBDC) across the world, use cases for Bitcoin could increase, allowing for new markets to be
created where the cryptocurrency is traded. For example, The Bitcoin supply on Ethereum
network topped $1 billion as the amount of the cryptocurrency tokenized on the platform
Canadian Software Firm Converts Cash Holdings to Bitcoin
A software firm based in Canada, Snappa joined the growing list of companies converting their
cash holdings to Bitcoin. The startup announced that it would convert its cash reserves to
Bitcoin (BTC). Economic uncertainty was a significant factor behind its decision to convert its
holdings to Bitcoin.
According to the co-founder of Snappa, Christopher Gimmer,
“This means that the purchasing power of our Canadian and U.S. dollars is actually
decreasing after adjusting for inflation. Fortunately, I believe we now have a far
superior savings technology available to us. That technology is Bitcoin.“
Cash has lost its appeal to many businesses that are facing increasing economic pressure.
With inflation rising across different regions and less consumer demand due to the COVID
pandemic, more businesses have had to make the jump to Bitcoin.
The stability of Bitcoin has been put to the test since its creation. It continues to exhibit signs
that it can be relied upon in the long-term. However, it remains relatively volatile in the
short-term due in-part to the depth of liquidity in the markets. As liquidity in the markets
increases, it is expected that the cryptocurrency could gain more stability.