The effect of cryptocurrency on the Naira, Nigeria's currency, is multifaceted and subject to various factors. Here are some key impacts:

1. **Volatility**: Cryptocurrencies, like Bitcoin, are highly volatile. This volatility can affect the value of the Naira against cryptocurrencies and other fiat currencies. Investors may opt to invest in cryptocurrencies, leading to fluctuations in the demand and supply of Naira.

2. **Capital Flight**: Cryptocurrency provides Nigerians with an alternative investment avenue, especially in times of economic uncertainty or currency devaluation. This could potentially lead to capital flight from the Naira to cryptocurrencies, impacting the Naira's stability and foreign exchange reserves.