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The suspended Minister of Humanitarian Affairs and Poverty Alleviation, Dr Betta Edu, has threatened to file a lawsuit against the British Broadcasting Corporation (BBC) for allegedly defaming her personality. Edu disclosed this in a letter dated April 9, 2024, sent ...

Socio-Economic Rights and Accountability Project (SERAP) has approached a Federal High Court in Abuja seeking an order to compel President Bola Tinubu to investigate the missing $3.4 billion loan. The rights organisation noted that the loan was obtained from the ...

In recent years, the financial landscape has witnessed a remarkableshift with the rise of cryptocurrency, particularly Bitcoin, as a viableinvestment option. As traditional assets such as stocks, bonds, andreal estate continue to dominate investment portfolios, theemergence of digital cryptocurrencies have sparked a debate abouttheir role in diversification strategies. While traditional assets havelong been the cornerstone of investment portfolios, the uniquecharacteristics of cryptocurrencies offer compelling reasons whythey could be the key to achieving true diversification. Volatility and Risk One of the most notable differences between cryptocurrencies andtraditional assets is the level of volatility. While stocks and bondstypically exhibit moderate volatility, cryptocurrency pricemovements can be highly erratic, with significant fluctuationsoccurring within short time frames. This heightened volatility hasled many investors to view cryptocurrency as a risky asset, prone toextreme price swings. However, it’s essential to recognize that volatility does notnecessarily equate to risk. In fact, some investors argue thatcryptocurrencies’ volatility presents opportunities for profit,particularly for those with a high tolerance for risk. Additionally,cryptocurrencies’ decentralized nature and limited supply of bitcoinparticularly provide protection against inflation, making it anattractive hedge against traditional assets’ inherent risks. Correlation and Diversification Another critical aspect to consider is the correlation betweencryptocurrency and traditional assets. Historically, stocks and bondshave exhibited a positive correlation, meaning they tend to move inthe same direction. While diversifying across different asset classescan help mitigate risk, it may not provide sufficient protectionduring periods of market turmoil when correlations betweentraditional assets rise. Cryptocurrencies, on the other hand, have demonstrated low tonegative correlations with traditional assets, particularly duringtimes of economic uncertainty. This lack of correlation makes theman appealing addition to investment portfolios seeking truediversification. By including uncorrelated assets likecryptocurrency, investors can potentially reduce overall portfoliorisk and enhance long-term returns. Store of Value and Hedge Against Inflation One of cryptocurrency’s most compelling attributes is its potential toserve as a store of value and hedge against inflation, especiallystable coins. Unlike fiat currencies, which are susceptible tomanipulation by central banks and governments, cryptocurrencyoperates on a decentralized network secured by cryptographicalgorithms. This resistance to censorship makes cryptocurrency anattractive alternative to traditional currencies, particularly in regionsexperiencing hyperinflation or economic instability. Moreover, cryptocurrencies, particularly bitcoin’s fixed supply oftwenty one million coins ensures that its value cannot be dilutedthrough excessive printing, making it an effective hedge againstinflationary pressures. As central banks around the world continueto engage in unprecedented monetary stimulus measures, the appealof cryptocurrency as a safe haven asset is likely to grow, furtherbolstering its role in diversified investment portfolios. Technological Innovation and Future Potential Beyond its role as a speculative asset or store of value,cryptocurrency represents a groundbreaking technologicalinnovation with the potential to disrupt traditional financial systems.The underlying blockchain technology enables secure, transparent,and decentralized peer-to-peer transactions without the need forintermediaries. This innovation has far-reaching implications forvarious industries beyond finance, including supply chainmanagement, healthcare, and digital identity verification. As adoption of cryptocurrency and blockchain technology continuesto expand, the potential for growth and innovation in this space isimmense. Investors who recognize the transformative power ofblockchain technology now view cryptocurrency as more than justan investment asset but as a strategic allocation with long-termgrowth potential. In conclusion, while traditional assets have long been the primaryfocus of investment portfolios, the emergence of bitcoin and othercryptocurrencies offers a compelling opportunity for diversification.With its unique characteristics, including low correlation withtraditional assets, store of value properties, and technologicalinnovation, cryptocurrency has the potential to enhance risk-adjusted returns and protect against inflationary pressures. However, it’s essential to approach cryptocurrency investment withcaution and conduct thorough research to understand the risks andopportunities involved. As with any investment, diversification iskey, and investors should carefully consider their risk tolerance andinvestment objectives before allocating capital to cryptocurrenciesor other digital assets. Ultimately, by incorporating cryptocurrenciesinto a diversified investment strategy, investors may unlock newavenues for growth and position themselves for success in theevolving financial landscape.  (LEADERSHIP)

In order to stem annual N180billion capital flight from the country, the Nigerian Maritime Administration and Safety Agency (NIMASA), on Tuesday, set to deploy its N50billion modular floating dock for dry docking of vessels operating on the nation’s waters. LEADERSHIP ...

Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos has ordered the federal government to fix the price of goods and petroleum products in Nigeria in accordance with Section 4 of the Price Control Act within seven days from ...

Nigerians living in South Africa have been warned of possible threats of xenophobic attacks ahead of Wednesday’s top flight semi-final clash between the Nigerian Super Eagles and the Bafana Bafana of South Africa in the ongoing African Cup of Nations ...

Socio-Economic Rights and Accountability Project (SERAP) has threatened to drag state governors in the country and the minister of the Federal Capital Territor1y, Abuja, Nyesom Wike, to court if they fail to account for the funds allocated for local governments ...

A Federal High Court in Abuja, on Thursday, ordered the remand of Prof. Cyril Ndifon, the suspended Dean of the Faculty of Law at the University of Calabar (UNICAL), in the Kuje Correctional Centre. Justice James Omotosho also ordered the ...

Justice Abubakar Hussaini Musa of the Federal Capital Territory (FCT) High Court has vacated an earlier order of the court directing the Inspector-general of Police to arrest the executive chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, ...

The apex northern sociocultural group, Arewa Consultative Forum (ACF), has said the management of the Central Bank of Nigeria’s (CBN) recent announcement of plans to relocate some of its key departments from Abuja to Lagos has sparked a wave of ...