Hive Will Come To Dominate Developing Countries
We tend to look at the world through out own eyes. This is only natural.
Cryptocurrency has become a world of big money players. We talk in billions as evidenced by the FTX collapse. Wall Street is heavily involved and we know what they are capable of. Silicon Valley VC money totaled $30 billion a couple years ago. When they are calling the shots, big numbers are involved.
Most of the world is not like this. For many countries, the numbers thrown around in New York City and San Francisco are unimaginable. This is where the foundation of cryptocurrency and blockchain needs to focus.
To the wealthy, all of this is really nothing more than a game. As for the rest of the world, it is life.
Here is where Hive can help.
The Unbanked
This was a topic that was big within the cryptocurrency world a number of years back. After a couple bull markets, like most of the early focus, it was lost in the mooning and Lambos. Nevertheless, this is a valid topic to focus upon.
When Hive is reaching into countries such as Nigeria, Venezuela, Ghana, and Cuba, you know good things are happening.
This is a target rich environment and a great place to grow an ecosystem. This is likely to serve as a foundation for Hive although it has not received much attention.
To start, we have to understand that many of the unbanked are so by choice. The belief tends to be they do not have access to banking services. It is not always the case.
Instead, we see people opting not to deal with the banks whenever possible. This makes sense when the banking system resembles loan sharks and Mafia hitmen. In other words, the corruption of the system is so evident that people opt out when they can.
Here is where Hive steps in.
We recently wrote about the situation in Venezuela and how it is making HBD a reality. In reading the original article, it is evident that the people in Sucre are thankful to be able to deal in US denomination yet not to have to touch the banks (or banknotes).
If businesses can align themselves with a medium of exchange that contains a unit of account they understand, gives them pricing stability, and they can get a hold of the currency, that is a winner.
This is what HBD does.
Hive Distribution
Many attack the distribution system on Hive. We see a lot of discussions about doing away with the base layer reward pool. This belief is that we should only have layer 2 tokens for this. There certainly are some challenges and things are not perfect.
The challenge with this is you hear that from people in the developed countries. Notice it is not from those in the nations I just mentioned. Once again, see things through our own eyes.
Where Hive excels is that we have the ability to get base layer coins into these areas. Due to the Proof-of-Brain mechanism, individuals, regardless of where they are in the world, are able to get $HIVE and HBD. This is vital to the future of this ecosystem.
When people are provided the tools, they will build around them. The situation in Venezuela shows that. What is key is to ensure enough of the currency makes it into those people's wallets. Here is where the PoB enters.
Obviously, through the reward pool, a portion of the new coins are going to be targeting that area. Like any other community, they can support each other in whatever means necessary. At the same time, many from the developed world toss votes to many from these areas.
This serves to help distribute the coins throughout the world. The US, UK, Japan, or Germany are not going to make Hive. These countries, for all their flaws, have relatively stable financial systems. A 2% drop in a $5 trillion economy is a lot but it is not the end of the world.
The same is not true for some of these other nations who end up being disproportionately affected when economic conditions go south.
The Benefits to Hive
For this reason, we can offer a number of benefits that is not available in the rest of the cryptocurrency world. Bitcoin, as an example, is viewed by many as the solution. This theory starts to fall apart when we question how will to the coin get distributed into the poorer countries. Unless they are mining, a purchase has to be made.
Therefore, here are some of the benefits to Hive:
- coin distribution through PoB
- stablecoin to engage in trade which is USD denominated yet backed by $HIVE
- USD stability against a native currency without USD
- feeless transactions for both customer and merchant
- tap into the Hive economy which is global and not dependent upon local economic conditions in any one region
First world problems are on a much different level than what people in these countries experience. When it comes to success in cryptocurrency, this is the low hanging fruit.
Onboarding tens of thousands of people from these countries will make a major difference, to both Hive and in the lives of these individuals.
We have to understand the US Government is going to keep weaponizing the US dollar. This is going to have a negative impact on most countries throughout the world. Currencies outside the USD will fell the pain, as many already experienced.
HBD has incredible value because it enables people in these regions to piggyback the USD by operating outside the scope of the national legal tender. The fact that it is digital in nature means there is less threat from the local corruption. After all, it is hard to take money out of a wallet, especially if you don't know it exists.
Millions of dollars in transactions can take place a few HBD at a time. Over time, this will only grow as people realize the benefit to operating in a dollar denominated asset as opposed to the local ones.
The benefit from Hive's perspective is that most people in these countries are already aware of it. They would prefer to operate in the dollar but fear for safety since it usually means dealing in cash.
With HBD, we provide a solution in a digital form.
So when we think of places like Cuba, Venezuela, Nigeria, and Ghana, we see how the benefits only keep growing.
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