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Actually, my understanding is that cryptocurrencies are having impact in developing countries. They can address hyperinflation, access to financial services, ge

by bo1024 5y ago

Actually, my understanding is that cryptocurrencies are having impact in developing countries. They can address hyperinflation, access to financial services, general friction in exchanging money etc.

dadoge 5y ago
More people need to appreciate this
- icelancer 5y ago
  They never transact with people in countries that have strict financial controls, so the problem does not exist for them. I pay people in Venezuela in cryptocurrency because nothing else is a viable option.
  - pessimizer 5y ago
    There's an assumption that people should think evading currency controls and taxes is somehow heroic. I'm happy that crypto allows people to violate US sanctions, but that's because I'm specifically against US sanctions, not the rule of law.
    - dadoge 5y ago
      A lot fewer people use crypto for ill motives than you think. Paper USD is a lot easier to hide than a Bitcoin transaction on a public ledger
    - dadoge 5y ago
      Have you thought about what effect 40% inflation year over year does to you like in Argentina? Or over 1000% in Venezuela.
  - dvfjsdhgfv 5y ago
    Which cryptocurrency do you use for it?
delaaxe 5y ago
But of course hyperinflation will never ever come to the first world
- 542458 5y ago
  With all due respect, people have been predicting that “$thing will (finally) be what leads to hyperinflation in the US” for decades and decades, but it has never happened. That’s not to say it can’t happen... but that predictions of imminent hyperinflation have historically been a poor bet and that extraordinary claims require extraordinary evidence.
shafyy 5y ago
Do you have a source for this? For example, Erdogan flat out banned businesses from accepting cryptocurrency when he saw that people were putting their money in cryptos because of the inflation of the Turkish Lira. It's not like cryptos are a stable currency, either. Question: Wouldn't it make more sense for people in develping countries to buy more stable assets or currencies, or is it not possible to that because of a lack of access?
- Allezxandre 5y ago
  One example from last month: https://decrypt.co/69205/cardano-developer-iohk-strikes-partnership-with-ethiopian-government https://decrypt.co/69205/cardano-developer-iohk-strikes-part...
- heurist 5y ago
  One of the most common arguments used against Bitcoin is "it's only good in black markets." That's essentially what OP said. Do black markets not operate when Bitcoin is banned by government? Is this not the essential function cryptocurrency exists to serve? The outcome in Turkey for Bitcoin will be indicative. I have a timeline of 5-6 more years before I count it out.
- rockemsockem 5y ago
  Venezuela was using Bitcoin a lot when they were experiencing hyper inflation. I just Googled this again for an update and I saw that they may have dropped their former currency altogether? I think access is a major problem here, although I haven't dug into the issue enough to know for sure.
ArkanExplorer 5y ago
The people who have the capability to use and exchange cryptocurrencies in developing countries are those who already have local or foreign bank accounts denominated in USD or EUR. These same people then mine coins in those countries, utilising cheap or subsidised electricity, resulting in power shortages. As we have seen in Turkey, these exchanges can be easily shut down, or the founder can simply disappear with all the cash. These are not really long term solutions, and the existence of cyrptocoins is probably making the individual lives of people in the 3rd world worse. I think its more likely that if these grey-market coins didn't exist, the local tech bros in the 2nd/3rd world would actually be pushing Governments to improve general financial regulation and stability, and building a proper series of banking companies themselves.
HarryHirsch 5y ago
M-Pesa and SMS banking in general had an immense impact in African nations. Bitcoin - not so much.
lobocinza 5y ago
Dollar or any other strong fiat does this role better. Crypto is just not accessible in those countries and the opposite of friction-less.
SideburnsOfDoom 5y ago
> Actually, my understanding is that cryptocurrencies are having impact in developing countries. Which country specifically would be a good example of this? If there are in fact any examples of this.
ffggvv 5y ago
yes because it’s so easy to get stable internet access, electricity and, translate fiat to crypto (without an equivalent to coinbase and without a credit card) do you have any idea what’s it’s like to be in a developing country? do you know the literacy rates? do you think crypto things are in their languages? do you see all the exit scams? these tech people are in such a myopic bubble
quickthrower2 5y ago
USD cash can do this too.

by bo1024 5y ago

Actually, my understanding is that cryptocurrencies are having impact in developing countries. They can address hyperinflation, access to financial services, general friction in exchanging money etc.

dadoge 5y ago

More people need to appreciate this

icelancer 5y ago
They never transact with people in countries that have strict financial controls, so the problem does not exist for them. I pay people in Venezuela in cryptocurrency because nothing else is a viable option.
- pessimizer 5y ago
  There's an assumption that people should think evading currency controls and taxes is somehow heroic. I'm happy that crypto allows people to violate US sanctions, but that's because I'm specifically against US sanctions, not the rule of law.
  - dadoge 5y ago
    A lot fewer people use crypto for ill motives than you think. Paper USD is a lot easier to hide than a Bitcoin transaction on a public ledger
  - dadoge 5y ago
    Have you thought about what effect 40% inflation year over year does to you like in Argentina? Or over 1000% in Venezuela.
- dvfjsdhgfv 5y ago
  Which cryptocurrency do you use for it?

delaaxe 5y ago

But of course hyperinflation will never ever come to the first world

542458 5y ago
With all due respect, people have been predicting that “$thing will (finally) be what leads to hyperinflation in the US” for decades and decades, but it has never happened. That’s not to say it can’t happen... but that predictions of imminent hyperinflation have historically been a poor bet and that extraordinary claims require extraordinary evidence.

shafyy 5y ago

Do you have a source for this? For example, Erdogan flat out banned businesses from accepting cryptocurrency when he saw that people were putting their money in cryptos because of the inflation of the Turkish Lira. It's not like cryptos are a stable currency, either. Question: Wouldn't it make more sense for people in develping countries to buy more stable assets or currencies, or is it not possible to that because of a lack of access?

Allezxandre 5y ago
One example from last month: https://decrypt.co/69205/cardano-developer-iohk-strikes-partnership-with-ethiopian-government https://decrypt.co/69205/cardano-developer-iohk-strikes-part...
heurist 5y ago
One of the most common arguments used against Bitcoin is "it's only good in black markets." That's essentially what OP said. Do black markets not operate when Bitcoin is banned by government? Is this not the essential function cryptocurrency exists to serve? The outcome in Turkey for Bitcoin will be indicative. I have a timeline of 5-6 more years before I count it out.
rockemsockem 5y ago
Venezuela was using Bitcoin a lot when they were experiencing hyper inflation. I just Googled this again for an update and I saw that they may have dropped their former currency altogether? I think access is a major problem here, although I haven't dug into the issue enough to know for sure.

ArkanExplorer 5y ago

The people who have the capability to use and exchange cryptocurrencies in developing countries are those who already have local or foreign bank accounts denominated in USD or EUR. These same people then mine coins in those countries, utilising cheap or subsidised electricity, resulting in power shortages. As we have seen in Turkey, these exchanges can be easily shut down, or the founder can simply disappear with all the cash. These are not really long term solutions, and the existence of cyrptocoins is probably making the individual lives of people in the 3rd world worse. I think its more likely that if these grey-market coins didn't exist, the local tech bros in the 2nd/3rd world would actually be pushing Governments to improve general financial regulation and stability, and building a proper series of banking companies themselves.

HarryHirsch 5y ago

M-Pesa and SMS banking in general had an immense impact in African nations. Bitcoin - not so much.

lobocinza 5y ago

Dollar or any other strong fiat does this role better. Crypto is just not accessible in those countries and the opposite of friction-less.

SideburnsOfDoom 5y ago

> Actually, my understanding is that cryptocurrencies are having impact in developing countries. Which country specifically would be a good example of this? If there are in fact any examples of this.

ffggvv 5y ago

yes because it’s so easy to get stable internet access, electricity and, translate fiat to crypto (without an equivalent to coinbase and without a credit card) do you have any idea what’s it’s like to be in a developing country? do you know the literacy rates? do you think crypto things are in their languages? do you see all the exit scams? these tech people are in such a myopic bubble

quickthrower2 5y ago

USD cash can do this too.