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Headline is hyperbolic as the article itself states crypto usage in Cuba is on par with other countries, about 2.5%. There may be some variance in use cases and
by altacc 5y ago
Headline is hyperbolic as the article itself states crypto usage in Cuba is on par with other countries, about 2.5%. There may be some variance in use cases and good future potential in Cuba but it's certainly not yet an active "revolution". There are certainly good use cases (and existing solutions) across the world for alternative banking systems, especially for international remittances.
The problem with positing Bitcoin as the solution is something that this article highlights as the problem with the Cuba's currencies - both Bitcoin and Cuba fiat are incredibly unstable. People living on tight margins in poor economies cannot afford to gamble with their daily cashflow. Every currency fluctuation has a direct effect on their daily living standards, including what they will be able to afford to eat. In the past few months we've seen massive drops in the value of Bitcoin, such as 25% over 10 days and 40% over 14 days. These are the kind of currency devaluations that poor people on very low incomes cannot afford.
The article would have been better if it had talked about cryptocurrency in general, not specifically the one used for financial speculation by millionaires (speculation in which Bitcoin Magazine plays a part in and it's founders & CEO financially benefit from).
Centralized financial networks and stable coins (if we insist on using a blockchain) are more likely to be the answer for these use cases any maybe the hype around Bitcoin helps that but as-is, it's not a good solution for those who would actually benefit from alternative financial networks.
- Clewza313 5y agoI think even 2.5% sounds incredibly optimistic. Cuba's internet system is famously dysfunctional, for a long time the only form of access was to stand around a few overloaded public wifi points. Mobile data is available now, but prohibitively priced unless you're one of the moneyed elite.
- mat0 5y agoThe piece comes from a site called "Bitcoin Magazine" lol. Of course they have an interest in seeing these "revolutions" all over the globe