Ah, the problem for the poor isn't inflation outstripping wage growth, it is that the poor just don't have enough access to taking on more debt. This is why Buy Now, Pay Later (BNPLs) are such a service to society!! Now, you can buy all the things you can't afford because your salary is too low and your credit cards are already maxed, and not pay until later! Brilliant!
Note the sarcasm.
Now, while I am a huge non-believer in the "good" that these services do, considering that the people in financial distress are most likely BNPL users and, they are twice as likely to be under financial stress than credit card holders (they likely have credit cards too remember), there are some potential positives - namely, changing the way people think about banks.
Now, I don't know if this exists, but I was just thinking about how we in crypto have become our own banks and we can collateralize loans, for example of the like that is coming to Polycub through @leofinance soon. But, like many have realized, there still needs to be a host of services in order to use those earnings in the real world. So, is there a debit card attached to a DeFi pool?
For example, if I am "my own bank" this means that I should be able to use my value as I choose and when I choose, managing it myself. However, "managing" is not that easy. But, if I was for example able to pool my value into a DeFi pool where like normal I am able to earn interest, but I also have on-the-fly access to draw on that pool through a debit card, that would means I could use the card in a store and have the contract manage the payments. This could function like a credit card, but personally, would want debit card access, where I am using either the accrued earnings or portions of the principle.
Using Polycub as an example here, I have put a resources into the various pools and earn a bit each day on them. The fees on Polygon are very low, so transacting often isn't much of an issue. If hypothetically I was earning 100 dollars a day, I would be able to draw upon that 100 through card access, with the transaction costs and a "management fee" (say 2%) taken out, with all of the services between handled through various smart contracts, so that I get my goods and the seller gets their money. This could mean that the seller could also choose to immediately pool the profits and start to earn some interest on their account too, that they can use for their business running costs and inventory payments.
As said, this could also run on credit too, where people are able to collateralize their holdings to borrow against, or set up debt models (much cheaper) like a tradition bank, but the pool of resources are crowdsourced and the interest gets spread back through the staked users, that in turn increases their own earnings that they can use to purchase, pay a management fee on and increase the earnings of the pool again.
While we should be changing the way we consume, like it or not, we do need to buy goods and services to survive. However, we are mostly restricted to making purchase decisions from the enduser position, not the position of the bank. Do we consume differently when we are the bank as well? Most likely, but the first purchase decision to make is to winddown our bank consumption and ramp up our be the bank processes.
This is not an individual movement, it is a movement of individuals, which is why the pooling of the bank becomes such a strong strategic position. One of the reasons that banks have up until this point had such a stranglehold on us all is, they have been able to collect and pool their own resources to put themselves in a near unassailable position to play the middleman role. But now, they are increasingly under attack, as new service models are built to compete and, crypto is going to leverage this cultural shift to give ownership back to the people. It creates a distributed collective, not bound by location or border - two mechanisms that restrict our mobility and keep us economically corralled as financial cattle to be milked.
The entire world of finance is going to be disrupted and what I think a lot of people are not recognizing yet is, it is already highly fragile. We should know this already by the changing depth and frequency of collapse, but without alternative, we just have to grin and bear it, each time having the thumbscrews tightened a little more, to leave us with even less.
There are now alternatives.
And more to come.
Taraz
[ Gen1: Hive ]
Posted Using LeoFinance Beta
The biggest problem of the poor is that they are not brave or smart :)
The biggest problem of the poor is that it suits the rich to keep them poor. Whole communities in the UK have been used as labour reservoirs. When the economy expands people from those areas are taken into the economy, usually in low-paid, short-term jobs with poor terms and conditions (even worse now with zero hours contracts and the gig economy, although some workers are resisting that: legally, Uber drivers are employees in this country). When the economy contracts, they are the first people to lose their employment. Those economic circumstances are compounded by poor educational experiences, poor housing, huge health inequalities, racism and, increasingly, for newcomers, insecure immigration status.
Yep - they have to chase the money, but never are able to earn enough to generate their own.
Or keep anything they do get hold of. It's very expensive to be poor.
I totally agree with what you said.
😍
:D
Perhaps they are brave and smart, but their focus is on the wrong things.
$320,000 dollars (varying, of course, depending on the changing prices of the assets it holds) in 34 months and now pays dividends in HIVE. It's a wealth creation token.I'm wondering whether we have an embryonic system in Hive where we could test some of these ideas? I'm thinking of SPI (@spinvest) which is a kind of mutual fund where investors have clubbed their resources together which is then used to grow. The fund has grown in value from $13,000 dollars to
There are many reasons that I like it including that it is a managed fund: even if I do not have time (or other capacity) to investigate new opportunities as they arise, the fund is pursuing those opportunities on my behalf (eg Polygon). At the same time, the fund is transparent and accountable and I can ask questions or put my point of view and get a response (disclaimer: I hold 11% of the fund).
SPI has already set up a loan mechanism, Bear Bonds, more clunky than you are describing, but perhaps a step on the way?
I don't know much about SPI, but I assume that there are various ways for this to operate on and off Hive and yeah, the managed fund position is valuable. I think LeoF are slowly working their way toward building more "service" offerings, where they will provide low-fee management that benefits all stake pooled.
We are definitely heading into an interesting area, as this is a direct threat to a bread and butter service to which banks have held the reins for a very long time.
Thanks for adding your thoughts her and on the other comment :)
😁
It is really difficult to move out of that BNPL mindset. I think instant gratification plays a part of that, but I also think it comes down to convenience on some level. I think the key is just the fact that you have the funds to pay it off if you do buy now and pay later versus not having the funds and still doing it.
Posted Using LeoFinance Beta
Convenience might be the bane of our species in its attempt to be better :)
I see the comments being about why poor people are poor.. Well, in my opinion a lot of it is because there are so many conveniences that help you stay poor! There are all these ways in which the rich try and make you spend money inefficiently and if you're poor to begin with - chances are you're working hard and have a hard time finding time to do enough research to find out what's good and what's bad.
An average person tends to simply struggle to find a way to get out of being poor, because society in many ways "peer pressures" them into working hard.. But that often just means wasting your time on a job that brings little money home. In my language we call it "kultura zapierdolu" sometimes, which essentially means a culture of overworking (in a vulgar way).
!1UP
For sure - we are lazy by nature - so if we can satisfy our immediate desires easily, we do - even if it costs us down the road.
Globally I think that many people are working at the wrong thing - chasing a paycheck, not real independence.
There's this thing people say "If you know, you know". In this case, it's a bit of a "if you don't know, you don't know". On the example of my parents, I can tell that they're not necessarily dumb people - but growing up in communism/socialism-ruled Poland and then in the inbetween times, they did not have the resources to learn how to get out.
They work hard, they aren't at the lowest lows of the food chain, but still it is not like they know how to accelerate their savings - and they're reluctant to take the risk to do so while they're approaching 50+ years of life.
Your analysis is very accurate @tarazkp and I strongly agree that we all have an important role to play in being able to manage our own finances without being dependent on any party.
The cultural shift towards cryptocurrencies is a great opportunity to improve things and form a collective-distributive system, which will ultimately benefit each other without feeling "milked".
Perhaps, we in the #Hive community can be the pioneers to help our neighbors prepare for the new system.
Because this is something that is still new to some people, it never hurts to learn and try it together.
Are all of you who are professionals here willing to teach us?
The decentralization of ownership means that the expenditure is also offset by wide returns - which is a pretty good way to not be milked - or at least, get fed as well :)
It means, to me, that people will not need a bank or any financial instution to borrow or lend or to do the other transactions anymore. The position of banks, which so called is being the element of trust, can be implemented by smart contracts in DeFi.
Yes - cuts out a lot of unnecessary middle layer services that are skimming far too much for what they offer.
Oh I like this plan! It makes the future seem brighter. 🌞
I have no idea if it is being done, but it seems like a logical progression and potentially, through the usage of contracts to connect pools, the liquidity could be enormous and cover all kinds of things. I also see this is how things like decentralized insurance companies could operate their funding too.
The way you have explained it makes it seem very logical, indeed!
Indeed the financial world is very fragile. It amazes me they have been able to keep it going this long. At some point the balloon will burst. No one knows when... but it will happen. Welcome the great reset... or awakening... which ever comes first.
It is pretty amazing - and more amazing that we keep supporting it as a society without question as to if there is a better way.
One of the reasons why I invested in COTI but their card is only eligible for Euro investors (lucky you) at this time. The problem is all the regulations elsewhere preventing this and it will happen soonish. This has to be the way forward and makes so much logical sense as a real every day use case. Just think how great this would be and would like to think this is being thought of by someone besides COTI.
Posted Using LeoFinance Beta
I thought COTI was a S.Af exchange?
No. It is basically a proper crypto bank. Coin of the internet (COTI). Israeli start up with full banking rights and a trustchain wallet blockchain. The Treasury is an interesting staking concept with 4 levels of risk starting with a level 1 (no risk) up to a level 4 (can be liquidated). Each level has various ARP and time levels for staking which you select. The bank card is only available for EU right now and once they have passed all banking regulations for stable coins and crypto they will run out the rest.
The Enterprise token is a secondary token that will be released in Q4 and 2 major clients are involved. Who they are no one quite knows but info will be released in Q3. DJED is the Cardano stable coin which is ready for launching for Cardano DeFi. All fees feed back to treasury for Coti stakers. They are the only genuine banking crypto project around having IBAN and Swift numbers for your accounts. They are in discussions with Governments for rolling out their digital currencies in the form of a stablecoin and one reason why I have jumped in quite big with this one.
Posted Using LeoFinance Beta
https://coti.io/ https://medium.com/cotinetwork/everything-you-need-to-know-about-the-coti-treasury-b5fd09e1d82a
Posted Using LeoFinance Beta
Poor people are responsible for their own condition because they hardly work for overcome poverty. Our efforts can change our status sooner or later.
I don't know about that - I think a lot of people work hard at that things they think will help overcome poverty, not realizing that what they are doing is supporting their poor position, not improving it.
Yes sir I actually mean that. They work for livelihood and they hardly found trying to improve their condition. Mostly found having no goal, if some of them try seriously they can change their life in a positive way sooner or later. I believe!
The theory of being our own bank through use I think that's one of the propose of the platform, so the availability of a credit card would end up enhancing this further, I agree it is a great idea.
Posted Using LeoFinance Beta
I am not sure a HIVE card would get enough volume - but a liquidity pool of HIVE might :)
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Interesting plan. Something to mull over.
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I thought you weren't going to post here anymore? Just can't keep away.
You get more pathetic day by day.
In three years, how many hardforks has Blurt had?