Third world countries play a major part in crypto adoption
A couple of days ago I read a very interesting post by @taskmaster4450. In this post he discusses the wrong perception that some people have of users from poorer countries that need the income from the blockchain to buy stuff to survive. People argue that this creates a sell pressure on the token and that it has a negative effect on its price.
What I found very interesting is that the author explains that if thanks to Crypto a user can provide for his family, this news will spread very quickly to neighbours and friends. For people in countries like Venezuela, to earn even 1$ can make a difference.
The average income is about 2$ per month in Venezuela
This means that a lot of Venezuelan people can change their financial situation simply by becoming active on the blockchain. At the beginning, they will probably cash out their earnings to buy food but later they will realise that they can actually save value by staking these tokens. Saving is something that is virtually impossible in a country with hyperinflation.
The value of a social media platform = the size of the network
When these Venezuelans and other people from poorer countries bring their friends to the blockchain, this is a huge added value for the blockchain. The network behind this token is actually growing and making the token and the blockchain more important. The size of the network is the currency of any social media platform and it has a huge impact on its success. It is therefore in the advantage of the blockchain to onboard people from poorer countries. If blockchain can change their lives, they will tell it to everybody around them. The number of users will grow, the network will expand.
Yes we need especially the people from these countries to develop this blockchain!
Crypto makes a real difference
I've seen the real impact of what the crypto world can have. Thanks to his earnings from crypto, my friend @fucho80 has managed to make a down payment for a new house and he plans to finish the payment thanks to his crypto earnings. I believe that this is an example that shows the extend of what crypto can do for people in poor countries.
The more people of developing countries seeing that crypto can make a real difference in their lives, the more the network will grow. This is the first step to mass adoption.
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Certainly saving is something impossible in a country with hyperinflation as it happens in my country Venezuela, however, if it can be achieved as we acquire the handling of the blockchain technology. In relation to the value we bring to the growth of this type of platform, it is something that is undoubtedly undervalued as you describe it. And experiences such as that of the friend @fucho80 serve as a stimulus for other societies to observe the potential that exists behind the crypto world. Thank you @achim03 for socializing these ideas
Thanks a lot for your comment. Third world countries play a major role in the mass adoption of crypto. I believe they will pave the way for the developped world.
@tipu curate
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Thanks a lot for the tipu tip!
There is a lot of suffering and homelessness going on in third world countries indeed and crypto has been able to help and there is a hope that more help is offered also.
Crypto can represent some level of hope for the less favourised countries.
I just received something in the mail that was made in a distant land. In America we tend to overlook a lot of what goes into a product. One day, blockchain will radically alter this perspective.
Blockchain makes the world a small place. It brings everybody together but what is on the other side of the screen is different. If somebody from a poor country can earn 1 $ with a post it has a totally different meaning than for somebody in the US.
Agreed. And as blockchain integrates with logistics, basic needs become less of a concern. The question is how long will this take and how many will suffer until the world realizes we have this potential to solve age old problems.
Venezuela is not the only country... In Indonesia any cryptocurrency that has DOGE pair is very popular due to low entry investment... Some cryptocurrency companies are giving cryptocurrency loans to third-world countries.
For a Proof-of-Stake coin to be usable in third-word countries, it requires staking pools, as most users don't have enough coins in the start to be able to stake alone.
It's not just Proof-of-Stake coins that are good for third-word countries, but also CPU minable Proof-of-Work coins as those can't be easily exploited with GPUs, FPGAs or ASIC miners due to design decisions. Basically you get less hashrate with more expensive hardware as the algorithm is not memory intensive like for example Ethereum.
It's common knowledge that OpenCL miners can only utilize two threads per GPU, and that means for some coins they can use only 512 MB of the GPU memory. Most common display adapters nowadays have at least 4 GB of display memory to allow 4K resolutions.
CUDA cards can utilize more threads than OpenCL but are still limited by memory bandwidth and operating system. For 4 GB card, up to 3.6 GB can be used for mining.
If a coin is minable from a phone or a basic Computer, this can increase adoption in developping countries. Some coins have an edge over others in this respect. Doge is a niche coin because of the very low transaction fees.
Thanks a lot for your quality comment!
As a cryptocurrency developer myself, one of the main guidelines for selecting algorithms was that the algorithm should be optimized for low-end CPUs... My coin can be mined with powerful Xeon CPUs with 32 or 64 cores, but it doesn't give more coins than solo mining on low-end CPU. Basically more powerful CPUs waste time finding even better solutions when less powerful ones only need to find one solution per block.
Having lower average block difficulty doesn't mean that already mined blocks are easier to replace in blockchain as rewriting blocks still need enough transactions or otherwise other nodes will just reject the smaller blocks.