How Crypto is a Financial Lifeboat in Developing Countries

Most people in developed countries see crypto as speculative assets used to make money. It’s hard to understand use cases for crypto other than speculation, but crypto is an essential tool for people in developing countries worldwide.

I’ll explain why crypto is a crucial technology to enable financial freedom for many countries.

The world is experiencing extremely high inflation right now. You’ve seen signs of inflation in food and energy prices.

Inflation is increasing for many reasons. The war in Europe, money supply expansion during the pandemic, and supply chain disruptions all contribute to high inflation globally.

This absurd amount of inflation can decimate people’s life savings.

In countries such as Argentina and Turkey, crypto is an escape for citizens from their countries’ currencies. They can store their assets in Bitcoin (volatile but not guaranteed to lose purchasing power) or stablecoins to access U.S. dollars with lower inflation.

Crypto can retain the life savings of millions worldwide which builds economic freedom.

To prevent money from leaving their countries, governments often implement capital controls. They set up barriers to keep money within their countries.

One example of this is gold confiscation at airports. Every year, millions of dollars worth of gold are confiscated at airports. Many people store most of their wealth in gold, so they can have their life savings seized at an airport when immigrating to other countries.

With crypto wallets, people don’t have to carry their wealth physically. They can remember their 24-word seed phrase to gain access to their wallet when arriving in a new country.

Crypto wallets give freedom for people to own their property without fear of confiscation.

Part of this problem stems from a lack of banking infrastructure. There aren’t financial institutions that can support these populations.

Crypto enables billions of people to join the financial system they have been left out of for years.

Being from the U.S., it’s difficult to grasp use cases for crypto outside of speculation. Inflation is high, but it’s not enough to evaporate life savings within a few years. Wealth is often held inside the U.S., so confiscation isn’t an issue. Most people in the U.S. have access to financial services, so they don’t see a need for blockchain technology. I understand why it’s hard for people in developed countries to understand why crypto is essential.

Crypto is more than just an investment. It’s a disruptive innovation that will change the world for the better.

Disclaimer: Any views or opinions expressed in this post are personal and belong solely to me and do not represent the views or opinions of my employer. You should not treat any opinion expressed by Josh as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. This article is for informational purposes only.

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