CRYPTO MYTHS BUSTED #6

#6. CRYPTOCURRENCY IS NOT USED FOR ANYTHING OF VALUE

When discussions about cryptocurrencies come up, one of the things that is often said is that cryptocurrencies have no use in the real world. This is not accurate, and is becoming increasingly inaccurate as cryptocurrencies find more and more real-world uses.

Cryptocurrencies are used to bank the unbanked; all anyone needs to use cryptocurrency is a cellphone and an internet connection. A staggering amount of people in developing countries don’t have access to banks, but they do have cellphones.
“Surveys conducted in 11 emerging and developing countries across four global regions find that the vast majority of adults in these countries own – or have access to – a mobile phone of some kind. And these mobile phones are not simply basic devices with little more than voice and texting capacity: A median of 53% across these nations now have access to a smartphone capable of accessing the internet and running apps.” – https://www.pewresearch.org/internet/2019/03/07/mobile-connectivity-in-emerging-economies/

“Fully 2.5 billion of the world’s adults don’t use formal banks or semiformal microfinance institutions to save or borrow money, our research finds. Nearly 2.2 billion of these unserved adults live in Africa, Asia, Latin America, and the Middle East. Unserved, however, does not mean unservable.” – https://www.mckinsey.com/industries/financial-services/our-insights/counting-the-worlds-unbanked#

Cryptocurrencies are used to send remittances back home by expats with low fees, fast processing times, and low barriers to entry. Sending cryptocurrencies around the world takes minutes, and costs pennies. Some countries have a very high rate of people sending money back home – Tonga, for example, has a GDP that is made up of 39% remittances. “The IMF reports that Tonga received $191 million in remittances in 2019. These represented 39% of the country’s annual GDP.” –
https://www.practicalethicsnews.com/the-most-remittance-reliant-countries-in-the-world/

Cardano (a proof-of-stake blockchain platform) is being used for identification for students and teachers in Ethiopia. “The identity solution…will be used to “digitally verify grades, remotely monitor school performance, and boost education and employment” across Ethiopia.” – https://dailyhodl.com/2021/04/29/cardano-to-roll-out-blockchain-based-ids-to-millions-of-students-in-africa/

Crypto games reward players in cryptocurrencies that can be converted to fiat currency. For example, players in the Philippines are living the dream and getting paid to play video games. “John Aaron Ramos, a 22-year old Filipino, revealed on social media that he has amassed enough profits playing Axie Infinity to purchase two homes in the Philippines.” – https://pinayteenvestor.com/axie-infinity-philippines/

You can earn real interest on your cryptocurrencies (known as “staking”), instead of the extremely low interest banks are paying. Some banks are actually charging you to deposit your money with them – for example, Denmark has negative interest rates at this point – https://danskebank.dk/en/personal/ratechange.

With cryptocurrencies, you can store your wealth in a form governments can’t seize, like they did in Cyprus in 2013.
“On 25 March 2013, a €10 billion international bailout by the Eurogroup, European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF) was announced, in return for Cyprus agreeing to close the country’s second-largest bank, the Cyprus Popular Bank (also known as Laiki Bank), imposing a one-time bank deposit levy on all uninsured deposits there, and possibly around 48% of uninsured deposits in the Bank of Cyprus (the island’s largest commercial bank)…No insured deposit of €100,000 or less would be affected, though 47.5% of all bank deposits above €100,000 were seized.” – https://en.wikipedia.org/wiki/2012%E2%80%932013_Cypriot_financial_crisis

A lot of emphasis in the cryptoverse is placed on the price of coins and tokens to buy and sell them, but cryptocurrency has far-reaching implications beyond buying a coin on which to turn some quick profits.

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