Market Value vs Real Value
We've seen quite a few posts on Leofinance lately about how it has changed users personal finance. @fabian98 challenged me yesterday, to share my story about if I could cover my expenses with my earnings on Leo or/and Hive. In response to his invitation, today I'd like to showcase how much Leo token really worth in three continents.
@belemo - Nigeria, Africa
Can you pay your rent with your Leo earning?
The rent for my current place is 100,000 naira per annum, which is roughly $210. According to data from Hivestat, I earned $90 from my published posts and a further $9 from curation. This means that at this rate of earning, I should be able to pay for my rent in about two months time. source
@fabian98 - Venezuela, South America
What can you buy with the profits of Leofinance?
In total 300$ (doing the calculation in LEO 300$ ÷ 0.24$ = 1250 LEO) source
He means he would need 1250 Leo to cover his expenses which does not include traveling, clothing etc., only food, medicine, household and personal hygiene products. He earns only 222, so he would need another 1028 Leo to be able to cover these expenses. I don't know how much the rent would be in his city, but probably more than he can cover with his Leo earnings.
@erikah - Romania, Europe
For those of you who don't know me, I live in Transylvania, in the center of Romania, and for those who are not familiar with geography, Romania is in Europe :)
@belemo started with rent and he said he could cover his annual rent with two months of Leo earnings. I don't pay rent because I'm the owner but if I would have, I would need 400 euro, which is approximately $482. At the moment of writing, Leo is at 0.247 UDS, which means I'd need 1,951 Leo, just to cover the rent. Then there's the utility expenses, electricity, gas, internet, phone and so on, which could mean another 100 euro, which is roughly $121, which is 490 Leo.
Medical expenses are again something you have to consider as even though you have insurance if you're employed, you want the best care when it comes to your health and you can only get that fast at private practices. One consultation is usually 50 euro, which is roughly 200 Leo. A covid test costs 65 euro ($80), which is 323 Leo.
Food! Yes, food as you need food if you want to survive. The expenses can vary depending on you needs and you lifestyle. I cook at home and also make my own jams and canned food from the garden my dad has for health reasons, but if you are relying entirely on takeaways or restaurants, you can pay a fortune monthly.
I don't even want to know how much it would be my monthly total in Leo. I just don't as I know I could never cover my expenses at the current price, not even the basic ones. Maybe I could buy some food with it but that's all at the moment. Maybe one day if I keep working hard and staking and if the price of Hive and Leo goes up considerably, maybe then I would be able to cover my expenses.
Above you have three countries from three different continents that are not among the top 20 economies of the World and I see no chance for any on them to get there anytime soon.
In these countries the real value of Leo and Hive tokens is very different. Market value is the same for everyone, real value on the other hand is very different. Some can pay rent with what they earn on Leo or Hive, others can't.
We keep talking about onboarding, mass adoption and hoping to see new users flooding the platform. Two days ago I did a post about Mass Adoption Has To Start Somewhere, in which I showed how a small island is adapting to the new situation, by accepting Bitcoin Cash.
I see a similar situation at the individual level. The necessity of earning a living or just cover a part of the expenses is going to rush onboarding, however not at the same rate everywhere. People from less developed countries will join in a larger number. User behavior on the other hand will not be the same and will vary based on users' location.
Some of these users will sell a good part if not all of their earnings to be able to live. That is reality, we see that every day and even though we would like them to stake, they are forced to sell in order to survive. Hopefully their activity on the blockchain will improve their life.
Many of us see the future value of the token, which is kind of wishful thinking or hoping if you like, as no one can guarantee Leo will reach $5 or $10 or more, but we (yes, me included) think it's going to happen one day as things are heading into the right direction and we have every chance to get there.
It is obvious that in the US you can't live off your Leo earnings, but I'd like to see what's the situation in Africa, in a different country than Nigeria, so I'm tagging @cryptoandcoffee.
Europe is a different matter, in some countries life is so expensive, in others maybe less expensive. We have a few users from Italy but I know they can't pay rent with their Leo earnings, but I'd like to tag @bil.prag and @onealfa, who's the biggest stakeholder here, but I'd still like to ask him if one could pay rent in his country with a modest Leo earning.
This is just an invitation, those tagged have no obligation to reply and I hope me tagging them is not any trouble. If it is, then my apologies in advance :)
Also, anyone, feel free to jump in and share what's the situation in your country, wherever you are from.
Posted Using LeoFinance Beta
