₦airaland Forum

Abeg these figures don dey give me headache o . I wan sleep well this night.

Ibime:
That's not the main reason. The main reason was the last one they gave - economic stability. No country will want a good portion of it's populace putting their savings into speculative instruments. Savings levels are how central banks set their monetary policies, reducing interest rates to incentivise spending when the velocity of money is low, and increasing interest rates when the economy is in danger of overheating due to inflation. Policy makers will not want too much savings invested in crypto rather than oiling the real economy.

I still dont get yiu. Yiu have banks settung up crypto desks. Traditional exchanges suxh as CME trading crypto futures, investment firma offering their clients the option of addung crypto to their portfolio. So how does " No country will want a good portion of it's populace putting their savings into speculative instruments" hold water when the traditional market makers are offering it as an asset to clients?
People invest in arts, vintage cars, baseball cards, penny and OTC stocks. Are those not speculative investments?

Ibime:
Come on man.

Your first link talks about percentage of population not value of money invested and shows 7% of Chinese use Crypto Vs 33% of Nigerians. First China population is more than 5 times Nigerias, secondly they don't do low value Naira transactions like Nigerians. I guarantee you that China is the second largest Crypto market after USA in dollar trade volume.

The second link is talking about Nigeria being the 2nd highest country on Paxful with $566m in trades in 2020. That's just Paxful, one application out of hundreds. Crypto trading volume over a year runs into the tens of trillions so Nigerians $566m in trades over a year on paxful is hardly worthwhile evidence.

As u wish.

SaintUlot:
That one is nobody's business, when everybody is shorting the market, you short with them, when everybody is longing, you long with them, when everybody exit the market, you exit with them and when it's time to resume the market, we all do meeting and we resume the market.

When everybody is shouting carry it, carry it and you didn't join them to carry it, definitely they ll dump it @ your backyard.

When you follow everybody how do u make money?

SaintUlot:
As far back as 2016,institutional investors have been investing in btc, they ll not tell you before them dump their bag and take profit.

Which wall street or traditional inveatment firm invested in crypro in 2016?

Ibime:
I seriously doubt Nigerians buy more crypto than China

Mining being banned is bullish - creates more scarcity

The China ban portends more Govt regulation around the globe. The reasons they gave are valid reasons and goals of any stable society and rhymes with warnings given out by other central banks

What valid reason? The same reasons of volatility, aiding criminal activites and enviromental effects. All these reasons have been countered appropriately.

The FUD narrative is been put in put faces. A country announced its adoption, another country announced clampdown, yet the market reacted only to negative news.

Then you have billionaires like Ray Dalio, Paul Tudor and other co adding to their portfolio. Microstartegy borrowed money to buy almost 500m worth of btc. Why are they buying more despite impending regulation?


for your comment on Nigerians not buying more crypto see the links below

https://www.statista.com/statistics/1195753/bitcoin-trading-selected-countries/

https://www.google.com/url?q=https://qz.com/africa/1947769/nigeria-is-the-second-largest-bitcoin-market-after-the-us/&sa=U&ved=2ahUKEwiIjrGXhqvxAhUEolwKHWQPCf4QFjAMegQIBxAB&usg=AOvVaw0vSwWCfYxYFmJamMCkjI73

Ibime:
The difference this time is that China are launching a digital Yuan and want no competitors. I'm sure China sees digital Yuan as a move to usurp the dollar as an international instrument of trade

You can't put the whole country on wallet and allow them to access speculative instruments through wallet. It can cause recession if BTC crashes having your whole population educated and familiar with using crypto wallets. They can easily go from using digital Yuan to buying Cryptos which no country wants for 100% of its population. It can cause a financial crisis and social instability for them.

In my mind, I just need to factor in how much of the current crypto marketcap is attributable to China and adjust my strategy accordingly.

We are missing a very important point. Who are the biggest buyers of crypt0? It is traders not miners that move prices. Nigerians trade more crypt0 than china. If China is clamping down on mining, miners would move to crypto friendly countries to continue their biz. Which would even decentralize mining further. Every nation is in a race to release a digital currency, but it does not guarantee the anonymity which crypt0s give. It is not developed on a blcokchain. So the demand for crypt0s would still be there. What i find interesting is that institutional investirs and billionaires are staking Beiteicee and Ethiy right now despite the price decline. That should tell u something.

China's crackdown on Bitcoin has been happening for years.

The narrative has always been the same.

Thisnut:
This long term bond is like a trap. When you want to eat with the devil, it's better to use a long spoon; In this case, the govt is the devil.

1. Why would someone borrow the govt money for an extended years when the govt can always print money to pay you back? Nigerian govt solicited for USD some months ago to pay 5naira for every USD; after they took all the USD, the crooks of a govt decided to print more money and devalued the naira. Just imagine some folks actually fell for that old trick. They gave treasure bill at 7% last year and naira went down 39% against USD the following year.

2.What would be the purchasing power in the next 20years following the trend in the last 6years? What if the economy gets better and naira becomes strong would it make your property value go down?

3. What is the value of a house bought 1m naira 20 years ago and what is the value of the money right now? Let say the money was compounded at 15% and the estate moved at 7% of the house value at every given point.

4. How fast can you flip a real estate vs a fixed bond and What do you risk losing breaking a bond?

5. Something just happened and I need my money now for better opportunities; shut up and comeback in 10yrs.


My take:

Real estate might not give a promising future, but always find a way to win in the face of inflation, deflation and recession. Right now the house market in the U.S has gone up more than 20% since the pandemic, while the mortgage rate has gone down more than 50%.

1. If that is the case why doesn't the govt print the money they need and fund their projects directly rather than borrowing money through bonds?

2. You can compound your coupon payments as a hedge against inflation

4. The only effect would be the prevailing intetest rate when u decide to sell. Better to sell when interest rates are low.

5. You can always sell your bond in the bond market.

Housing rates in US are only high because of rising lumber prices. This is not sustainable in the long term, at most 2-3 years. In the last 2 weeks, lumber prices have fallen by as much as 40%. Coupled with the reopening plus interest rate which the Fed would surely raise by 2022, mortgages would go up.

Tobex4realTobex234:
These compound interest calculations are giving me orgasms o but how does one achieve it with stocks? I currently never sell any of my stocks but I would like to know how one can leverage compound returns on equities apart from re-investing dividends which I already do.

This bonds seem like an alternate asset I should consider sha because to be honest na proper Island wey I for like to do real estate in Lagos, but my money no reach to buy lands for there

You compound by buying dips and DCA

Lazyyouth4u:
What if war happens? What if a military government comes in and refuses to honour the bonds? What if hyperinflation happens like what happened in Zim?

If war happens u invest in war bonds na if a military govt refuses to honour the bonds, thats bad news for the country

With hyperinflation, you would have seen the signs in economic indicators which qould give u time to adjust. Govt ceasing ur land is instant with little time to adjust.

But as u said each asset class has its benefits and demerits

400billionman:
I have been reading for long.

The response to your question should be affirmative.

When I see new buildings popping up, I hiss, because the poverty rate in the country is abysmal. Current landlords know 90% of their tenants cannot afford bills and therefore expect everything to be done for them free. The housing agents who are not in the landlord's shoes will even side with the tenants.

One landlord actually referring to his tenants called them parasites.

Yeah i asked because default on rentals is on the increase. Cost of maintenance is also in the increase. Also developers are concentrating on building for high income earners, (a section which i feel is saturated) rather than low or middle income earners where there is a housing deficit

Lazyyouth4u:
And then at the end of the 30 year tenor, the bond investor gets his 100m while the real estate investor sells his house/land for 1 billion

What if government collects the land

Nostradamu:
Finally! Today, I reached the top of this financial stock investment mountain (page 313) after climbing from the base (page 1). Congratulobia to me .

Gonna keep this short, my girlfriend & I have a very small " loose" change [$2k] to spare for investments in US stocks. Our risk appetite is medium to high, duration is for both:

1. Long term
2. Day trading

InaNla, 4Play, Oakpearl, Skymoore, YerYer, seyisanya, afroxy, Yazga, Nobody, thesilentone, lafuria1 (hope I got some names right), etc, Dan Allah, your advice, added to our own laid-out plans & DD, will be of high value. ABEG! We're between low to middle-income earners living in Nigeria.

Thanks.

Cybersecurity, financials, healthcare, commodity backed equities

emmanuelewumi:
Which of the assets are you looking at? You can only have a bubble after a prolonged bull.

Real estate. Rental apartments to be precise . Going by the increasing number of houses which are empty (Abj an ezample), and the fact that many people's income may not keep up with rising rental costs

Myhelper1:
AMC to the moon

A sign that the market may be topping.

Don't you think we may have an asset bubble in this country given rising inflation and poverty rates?

anungangampu:
Broke Girls everywhere trying to reap where they did not sow.
Imagine letting the girl know who you are and where you wife works, I swear 90% of this mainland girls with jealousy will kill you to get their share.. Rubbish.

How do u know she is a mainland girl?

sapphiere:
Did you know that without feminism, we wouldn't have gotten people like Ngozi Okonjo-Iweala, Kamala Harris, Angela Merkel etc? Feminisms open doors for equality and women empowerment. I spits on any women who rejects the movement.

So who opened the do for Funmi Ransom Kuti (Fela's mum), Margaret Ekpo, Grace Alele Williams, Aba women's riot, Queen Idia, Queen Amina, Amazons of Dahomey and others? Was it feminists? Study history and stop blaming men for your incompetency

wman:
That's what ya'll said that you lost Cristiano Ronaldo and started sinking. That's how you lost Zidane the second time.

We won the league without Ronaldo. Got to UCL semi finals which Ronaldo has not gotten to since he left.

We are Real Madrid, we make legends. If Raul who was married to the president's daughter and Casillas can be dispatched, then who?

Lazyyouth4u:
Don’t be surprised that he (or one of his companies) is the landlord/owner of that building (and other group buildings) and collecting rent from the Dangote Group. Many business men do this.

This guy eh. This is on point

Ruben225571:
Yea
See the rate here on Binance
Although am giving to someone and it’s urgent!!
So the person would be indeed lucky

Why don't you do a raffle draw and pick the lucky winner

LadyRosa:
Story...
Thieves dey torchlight thieves.

We southerners I swear we be big &fool. Our education is actually a waste.

Na to argue on twitter we sabi

The man sabi Nigerian banks and Nigerians wella. See the section in the interview where banks would appropriate your feasibility study and send to someone else. Or a factory manager setting up his own factory while working for you and running your biz down.

emmanuelewumi:
10 years keh. With dividend of over N200 billion from Dangote Cement in May 2021

The man wants to put his money to work. He would get greater returns from his industries than the appreciation of a corporate building. I heard he got portkabins as office for one his bisinesses while operation was going on. Why put operations on hold to build new office complex? I feel he is buying time by focusing on projects with higher returns

emmanuelewumi:
I read his interview published about 21 years ago, when he spoke about his landlord at Victoria Island in the mid 80s


I think he is weird sha, are you saying having a property for his head office will be more expensive than his private jet or hatch?

The private jet would buy him time to conduct deals. Time saved is money saved. The cost of a headoffice can be transferred to renting a property in the short term while he concentrates on projects that can bring him income. Let's assume what it would take for him to build and maintain a corporate headquarters would rent him an office for 10 years. That inflow can build him 2 corporate headquarters in 10 years time

StrafordSTONES:
oga ibime shebi you dey find entry, come and see dip o....


I think the statement the Feds are going to make today is contributing to the downward trend of P.A. I read any statement they make is gonna have a huge impact on the price of BTC for movement to either direction. So let's watch.
Trading this market really needs you to be upto date with news else you gonna be constantly caught off guard

Fed policy meeting has nothing on cryptocurrency

emmanuelewumi:
Do you know that the corporate headquarters of Dangote Group is a rented building.


I don't understand the man at all

Maybe he wants the biz to fund the building of a corporate headquarters from its proceeds. Also he has other caputal intensive projects that wpuld bring in money in the long term. So it makes sense concentrating on those rather than building a corporate headquaters that would not necessarily contribute to cash flow.

No matter where you go, remember the road that leads you home

Lexusgs430:
You don't know that this dictatorship regime,is simply against any means the lazy youths have explored to generate revenue.........

They don't provide for you and get upset, when you explore......

Their next target is youtube.........

Then after that the next target is DSTV abi?

HISSCRIBE1995:
That could be dangerous, you have to Stop it immediately or it could lead OCD (obsessive compulsive disorder)
I think you should search for OCD and its complications.

You must take control of your mind now or it could lead to What you never expect.
Especially if you are a christian you have to be careful or Satan could take that as an advantage and sneak blasphemous thoughts against the holy spirit into your mind, and you will (God forbid) then be battling with the guilt of committing the unpardonable sin, and the horror of eternal damnation.
I'm telling you this from experience.

Search for OCD christianity.Com

Be warned.


Check out my post concerning OCD click on this link - https://www.nairaland.com/6568244/obsessive-compulsive-disorder-satans-secret


You can also click on the link below to see for yourself how many Christians are suffering from this evil thing.

Please take the responsibility of guiding your heart serious or else you might regret it for the rest of your life.

https://ocdandchristianity.com/?p=235

If Isaac Newton thought he had OCD when pondering on why the apple fell to the ground, who knows the fate of physics today.

Lexusgs430:
Is twitter a Nigerian app........

Never underestimate this clueless regime..... They never fail to disappoint.......

Trading 212 never carry that kain weight. Don't worry