A comprehensive report by the New York Times in 2018 detailed the flourishing crypto movement and the opulent lifestyle of the crypto rich. The reporting by the New York Times exposes the stereotypical manner in which crypto enthusiasts are ignorantly perceived.
When ripple surged a record 1240% in a month, guess what was rocking the headlines? Company CEO Chris Larsen. It’s a common storyline for news feeds to state that only a few people benefit. Cryptocurrencies are not about becoming fabulously wealthy as you are made to believe. It is a limited narrative that pedals skepticism on the transformative potential of cryptocurrencies.
Traditional financial institutions may be happy to benefit from bitcoin derivative contracts that are bought and sold via their institutions. They are however continually dismissive of the cryptocurrency movement.
JP Morgan Chase CEO Jamie Dimon once referred to cryptocurrencies as a fraud and a good option for drug dealers and murderers. Meanwhile, former PayPal CEO described bitcoin a colossal pump and dump scheme suited for criminal activity only. Likewise, Charles Munger did not hide his detest on the crypto movement. They have a good reason to be mad.
Their invention of cryptocurrencies defiles the comfort zones these institutions have. Cryptocurrencies are a threat to centralized monetary systems. So they won’t just let them have it without a fight.
To some people, cryptocurrencies are just a way of becoming wealthy while for others, it is a threat to their business models. But many are who see them for what they are- a savior in turbulent and unstable situations. The unbanked have seen the benefits crypto is making in their lives. And this includes those in developing countries and those impacted by geopolitical turmoil.
Although Facebook’s new digital currency is yet unproven, it’s right on the mark. It targets the 1.7 billion adults with no access to financial systems. In the US alone, a quarter of the population are unbanked and are seeking a better option. Facebook Libra could fill this gap.
Crypto’s emergence transforms the way people relate to banks and how they extract value. The transformation is already taking center stage in countries like Venezuela where the inflation is 1.7 million percent. Crypto is allowing people to buy milk, food, and housing. Borderless money is making a difference in a collapsing economy.
People won’t depend on financial elites and established organizations anymore for relief. They can now do it themselves.
New Opportunities for Entrepreneurs
Besides use case in crypto, blockchain has also fostered a startup culture that is buzzing with innovation. A good example is the Matic network, a base protocol and India’s second layer solution for Ethereum. While Ethereum is struggling beyond 15 transactions a second, Matic uses a side chain scale to 65000 transactions a second.
Matic Network is establishing partnerships and is helping kick start India’s blockchain startup scene. This encourages other entrepreneurs to join the bandwagon.