Abstract
The rise of cryptocurrency has introduced a dynamic shift in global financial systems, challenging traditional markets such as the Nigerian capital market. This study investigates the prevalence and growth of cryptocurrencies compared to the established capital market in Nigeria. By exploring the operational mechanics, market value determination, and investor participation in both systems, the research highlights key similarities and differences. While both markets derive their value from underlying ideas and are influenced by demand, cryptocurrency offers unique advantages such as decentralized control, 24/7 trading, and minimal transaction costs. However, it also faces challenges such as high volatility, manipulation, and ambiguous legal status in Nigeria. In contrast, the capital market, with its structured institutional backing, offers more stability but is constrained by regulatory oversight and operational timelines. The study provides a comprehensive evaluation of both financial instruments, guiding investors toward informed decisions about the opportunities and risks each market presents.
Keywords
Cryptocurrency, Nigerian Capital Market, Financial Systems, Market Value, Investor Participation, Decentralized Control, Market Volatility, Regulatory Oversight