Bitcoin and Blockchain development over the years has been observed to occur in cycles. Focus within the industry has always shifted between Bitcoin and Blockchain in a repetitive cycle.
We are in the midst of a Bitcoin price rally that also has an impact on many altcoins and sparks a new level of awareness and intrigue within the general public. The media plays its role in this cycle and eventually, governments and the businesses take notice and get involved at a deeper level.
The recent increase in awareness has spread to new territories and countries like Nigeria which has hitherto appeared unconcerned about happenings within the crypto industry and has begun to show visible interest.
Government has been cornered
Ayodeji Odusote, the data architect at the Central Bank of Nigeria, thinks that the sudden awakening in Nigeria reveals an irrefutable support drawn from a mixture of fear, anxiety, politics and hope.
According to Odusote, nothing has really challenged the powers and authorities of financial regulators like this before. At one turn or the other, they have always found ways out of financial competitions in the past. Either by policy or by fiat, financial regulators have always found a way out.
This time around, unfortunately, they are in a cul de sac and naturally they must be afraid of losing all they had guarded - their authority and power.
However, Odusote notes that the political appeal to protect the interest of the government is not out of place, as this is obtainable with all financial regulators around the world.
“There is nothing peculiar about the actions and/or reactions of the CBN. We have seen similar things play out across the globe. Just as other financial regulators explore to see the benefits they can derive in times like this, it is also not out of place that the CBN would do the same. It is timely and appropriate as well. You don't want to be left behind and alone should the world decide to go full-fledged cryptocurrency.”
Jason Cassidy, president of Crypto Consultant, tells Cointelegraph that governments and financial institutions focusing on the currency aspect of this new, emerging asset class are to be expected right now.
He says that when Bitcoin's price is lower, so tends to be the interest level from an investment perspective. Analytics like Google tend to bear this out, as is the same story with altcoins, to a lesser extent.
However, Cassidy points out that once the price action dissipates and Bitcoin goes into a period of stability or a downturn, public interest tapers off. Governments and businesses do not stop paying attention, however, the narrative switches back to the underlying technology - Blockchain.
Cassidy concludes by saying:
“Expect this hot and cold treatment to continue over the coming years. The growth of both Bitcoin and Blockchain technologies will continue, however, the attention and focus will shift based on the ebb and flow of the Bitcoin price.”