Bitcoin is a decentralized digital currency or virtual currency that only exists on the internet. It is actually a file on a computer that is stored in the digital wallet of the owner. The ownership of bitcoin can be transferred from one wallet to another and a record of each transaction is kept in a public list called a blockchain.
New Bitcoins are generated as a reward for record-keeping of a public ledger called the blockchain. The process of generating bitcoins is called mining. Apart from mining, bitcoins can also be obtained by exchanging products, services, and physical or fiat currency at prevailing rates. The fluctuating prices of bitcoin allow traders to speculate on the price of bitcoin by buying at low and selling at higher prices or vice versa.
The Securities and Exchange Commission of Nigeria announced in September 2020 that it will be regulating the trades of cryptocurrencies in Nigeria. The Nigerian SEC has come up with regulatory standards to promote ethical practices in cryptocurrency trades while enhancing the transparency and security of the traders. Earlier, cryptocurrencies like bitcoin, Ripple, Litecoin, Ethereum, etc were not considered as money. Due to a rise in demands and increasing trading & transaction figures in Nigeria, the SEC has implemented regulations to promote cryptocurrency trading and transactions.