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I’ll start this week’s article with a quote that I want you to remember every time you find yourself questioning crypto and the whole Web3 sector:
Most people overestimate what can be achieved in a year and underestimate what is achieved in ten years.
People get scared when they zoom out to the last year in crypto and see a token that had an ATH of $69,000 now struggling to break the $20,000 resistance. This is cyclical, and what most people forget to analyze is what’s going on behind the ticker price fluctuations.
Let’s recap what has already happened this year so far that could indicate a macro change caused by Web3.
It’s been almost 15 years since the implementation of blockchain technology. In 2008 Satoshi Nakamoto published the Bitcoin whitepaper, introducing Bitcoin and its underlying technology. One year later, the first Bitcoin transaction- “Genesis block” — was made. Those were small steps at that time but were vital for what this industry has encompassed in the following years.
In 2013, Vitalik Buterin published Ethereum’s whitepaper, also introducing the concept of smart contracts. A few years later, some of the current major exchanges were founded, such as Binance, Coinbase, and Gate.io), and the crypto sector took its first mature steps and attracted more users and investors. A thousand-dollar market turned into a trillion-dollar industry. Blockchain is one of the most disruptive technologies today. It can potentially reshape the way people shop, work, settle, and bank. Bitcoin’s adoption at a global level is happening right before our eyes, and it is a matter of time before it reaches mainstream and fully merges with traditional finance.
BTC as an official national currency
According to the local government, the Central African Republic (CAR), one of the poorest countries in the world, adopted Bitcoin as its official currency along with the CFA franc. This is the second nation to adopt the measure. On September 7, 2021, El Salvador became the first country to adopt bitcoin as a legal exchange currency alongside the US dollar.
Adopting Bitcoin in those countries represents a decisive step toward opening up new opportunities for them. Among the motivations and benefits:
- The adoption of Bitcoin as the official currency could facilitate the receipt of international transfers.
- Bitcoin could be an instrument for the unbanked to access digital payments and other transactions in the financial system without relying exclusively on cash.
- Bitcoin could attract international capital, combining its acceptance with the absence of taxation on property and smoother regulations in those countries.
Bitcoin and the crypto sector are improving people’s lives outside the US
Axie Infinity, a play-to-earn game, helped thousands of people struggle with poverty in unwealthy countries such as the Philippines. By playing this crypto-related game (and others), individuals from those countries were able to earn crypto while playing and converted the gains to Bitcoin as a store of wealth since their currency is getting more undervalued year after year.
This is one use case of how Bitcoin and the crypto sector can improve people’s lives. For example, if people are struggling through a hard financial time, they might be able to get an extra income by playing.
Bitcoin battling government restrictions
Governments can put restrictions almost as they wish so. So it becomes even more apparent that they can take control of citizens’ assets at any time. Bitcoin has proven to be a way to battle the centralization of your assets:
- Self-sovereignty Canada truckers: “freedom convoy” protesters received more than $1 million in BTC donations from supporters, while the local authorities sought a freeze on those money donations.
- Russian Oligarchs: Russia’s elite is converting their wealth to Bitcoin to evade economic sanctions.
We are witnessing the adoption of Bitcoin in several cases and scenarios, which suggests that this represents a path to a more globalized and decentralized economy. The first signs of how far BTC can go and how useful it can be in different situations are already here, and it’s just a matter of time until more clear signs of it are presented.
We might soon see broader access for the unbanked population into crypto, instantaneous and low-tax international transactions, payment acceptance in BTC, and many other use cases. As said before, most people overestimate what can be achieved in a year and underestimate what is achieved in ten years.
Joe Robert is currently the Chief Executive Officer of Robert Ventures, with over 20 years of asset management experience. Since he started Joe has created predictable double-digit returns for investors & Partners. Joe has invested in seed rounds with equity and tokens, along with a portfolio of Bitcoin, Ethereum, and other top cryptocurrencies.
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