Impending economic crises could kick-start cryptocurrency adoption, according to Coinbase’s CEO Brian Armstrong.
In an interview with Bloomberg, Armstrong detailed the founding of the cryptocurrency brokerage giant. He went on to predict economic crises around the world taking place over the next 3-5 years. He believes that this could spur organic adoption of cryptocurrencies as the people flock to a store of value less prone to inflation and manipulation.
Dash is making massive inroads into developing countries
Dash is proving Armstrong’s hypothesis correct by making strong adoption gains in developing countries. This is particularly dramatic in Venezuela, a country experiencing severe hyperinflation. Because of this, the adoption of Dash as a currency has surged, with 864 businesses accepting it as payment at time of writing, with more added every single day.
Wow! Over 800+ @Dashpay accepting merchants now in #Venezuela 🇻🇪 listed on https://t.co/MrMqst80it. 🏆💪🚀 Thank you to @dashmerchant for your efforts. #Dash maintains record low transaction costs, extremely fast confirmation times, great security & consumer friendliness. pic.twitter.com/iKkeaeIOHu
— Mark Mason (@StayDashy) August 14, 2018
Significant growth has also been observed in other countries. Ukraine claims 75 Dash merchants, Colombia lists 50, and Ghana, a rural country with more limited access to technological infrastructure, lists 15. The global total of known Dash-accepting businesses as recorded by DiscoverDash is 2,232 at time of writing.
Advantages exist over first-world payment systems, but crypto shines most against depreciating currencies
While many cryptocurrencies like Dash hold inherent advantages over present currency and payment systems, they may not be stark enough to entice merchants and consumers in developed countries to undertake the risk and work to switch over. As such, the prime utility for cryptocurrency is speculative trading at present. Developing countries, on the other hand, or simply countries undergoing currency troubles, present much more fertile grounds for adoption and real use of cryptocurrency.
List of Countries with 10% inflation or more. This why Crypto! Protection against Governments inflating your wealth away! Developing countries are the first adopters! #Dash #Bitcoin pic.twitter.com/bf4sMWNO2m
— Token State (Tokenize the World) (@tokenstate) August 14, 2018
With a long list of countries experiencing significant inflation, cryptocurrencies not prone to inflation present a strong alternative, and users choosing to use them to transact and hold their savings in them can be spared from a sharp drop in purchasing power over the years. This inherent advantage makes pitching cryptocurrency to businesses and consumers relatively easy.