Why hasn't crypto taken over the developing world?
We've all heard the hype, that crypto banks the unbanked, and so on. But largely, we've seen the developed world take up the lion's share of attention and investment in crypto.
This isn't to say it isn't making inroads into the developing world. It definitely is. It just isn't (yet) on the same level of financial inclusion as what we'd like.
Here's some of the biggest reasons this hasn't happened yet:
1️⃣ The developing world can't afford to lose money on volatility
If Bitcoin or Dash (or whatever) goes down 15% over the course of a week, a US or western European merchant can handle that risk on a few small payments.
But a merchant in the developing world may not be able to make bills. Their position is much more precarious, and volatility is a real adoption killer.
2️⃣ The developing world doesn't have on-ramps/infrastructure
In the US and Europe for example, it's super easy to buy crypto: link your bank and debit card and you're good to go. You can also spend it on bills and more through many companies that make this convenient.
Elsewhere, the same infrastructure just isn't there. Fewer on-ramps, fewer users have access to banking services to buy it in the first place, fewer cash on-ramps, and so on. It's much harder to acquire a new user this way.
3️⃣ The easier money is in the developed world
Sad truth, but the crypto world has chased easy gains, and the easier gains are from high net worth individuals who can grow capital in the project.
The value you get out of an acquisition in the developed world is much higher for roughly the same cost, especially in this heavily-speculative world. Reaching the unbanked is the hard path forward.
But, we don't think this state of affairs is good enough. Dash is money for the world. We're working on some solutions:
🌐Stablecoins solve the volatility problem
A stablecoin denominated in the US dollar (for example) is a valuable anti-volatility tool. We're working hard on getting some stablecoin options on the new Evolution chain. This will make our job of reaching the developing world a lot easier.
Yes, being tied to fiat valuations isn't ideal, and longer-term (or right now for those who can take the risk), Dash as the base currency unit is the way to go. But stablecoins can onboard the more risk-averse until Dash starts to lose its volatility.
🌐 We're working on tools for bill pay etc. in the developing world
We're in open conversations with infrastructure providers who could help us service the developing world. Stay tuned as we onboard more!
🌐 We're working on ways to earn Dash
We're working on partnerships that would allow people to earn Dash natively, without having to buy with fiat first. We believe this will be a killer app which would allow users everywhere to start participating in the Dash economy today.
It's a long road to service the whole world, but we're committed to it. Dash is freedom money for everyone.
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Hey @dashpay, just wanted to let you know this comment here is meant to reward the person who shared your post on Reddit. By registering on hiveposh.com with hive keychain and reddit login we'll know who the sharer is and which hive account to send the rewards of this comment to + some POSH tokens on the hive-engine side-chain!
Hope the comment being at the top of your post won't bother you and that you like the project enough to let your readers know about it! It should be a win-win for everyone involved as the project doesn't take a fee from the comment rewards. ^^
Interesting, what does the token do?
Nothing aside from rewarding sharers currently, it stands for proof of sharing.
And there's a monetary value behind it?
Yes, post rewards of @poshtoken buy up POSH so it maintains value, as the activity to share benefits all front-ends on hive and attempts to drive traffic to them the community doesn't mind the rewarding of automated posts in this case.
The top-two coins yes.
I think that lot of people have yet to see how it can be a financial tool. The majority of crypto's launched in the past ten years no longer exist.
Rug pulls, scams, memecoins, nft's.
How many legit projects can you name that is easily accessible to users and has a real purpose?
How many can earn them some money that they can spend instead of being gambles if they exist in a years time?
We've a long way to go before people have trust in any of these projects as very few have been shown to be legitimate businesses.
Absolutely, but when people see that it just works and start building habits, over time they will.
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STOPFirst, I think this is a good synopsis of the issues at play in the developing world.
Second, I htink one really good solution which Dash was a part of was SMT Text wallets used to transfer crypto from person to person and person to vendor. This was uniquely designed with infrastructure shortcomings in mind. It did depend on the internet service provider participating, but I suspect that could be replaced with someone running a node connected to the internet and the phones through a third party App, so if it doesn't exist perhaps I will work on inventing it. LOL
Third, welcome back to Hive and Welcome to Inleo,
It's great to have you hear and also great to see you taking advantage of all three platform areas Longform Posts, Short Form Threads and Video Shorts!
I am sure lots of people have offerred to answer questions, and help you out, but I will still offer; I would be happy to answer questions or help you around our ecosystem, so remember I am only a comment away.
Interestingly enough, we did have some text wallets in Venezuela in the past.
I thought I remembered writing a post on Steemit about that technology and it's impact on areas where the internet was scarce, but cellphones were not, and Dash was one of the tokens available...