Blockchain — can it power inclusion?
Part 1 — An Introduction
If blockchain comes up in conversation I’d wager a bet that most people tend to think cryptocurrency and in association many other spin-off words; volatile, ponzi, scam, speculative, exciting, future, security, innovation and hope to name a few.
Whether you’re a convert, a “crypto maximalist”, a casual retail investor or sceptic of digital assets — crypto in 2021 is hard to ignore.
Bitcoin the “Queen or King of crypto” is best known for its parabolic and volatile nature. There are no shortages of stories of those that have struck gold simply by buying and holding Bitcoin. Likewise, many other stories of those that held it, not really understood how to keep it nor its potential value and sold it before the price surged.
Infamously in 2010, the first Bitcoin transaction took place where a man purchased 2 pizzas with his crypto. This transaction was infamous not only because it was the first transaction but also because 10,000 Bitcoin was used to pay for 2 pizzas. At today’s price — even during the current bear period meant that this poor chap paid circa $400,000,000 for 2 pizzas.
Numbers of this scale undoubtedly grab attention and sensationalise the crypto industry. Getting rich in a very short period can do that sort of thing.
Doge coin made infamous recently by Elon Musk’s expressed preference of the meme coin over Bitcoin is another sensationalist example of extreme gains. In tandem with TikTok influencers, Musk’s tweets have made many Doge holders extremely rich. Notoriously including Ethereum founder Vitalik Buterin who made $4.3m from his $25k investment.
Meme coin or not, currently it has a market cap of $42,000,000,000.
This year, we have seen the total market cap of cryptocurrency exceed $2.4trillion with Bitcoin accounting for half. (At time of writing the market cap circa $1.5 trillion).
Whilst it may pale in comparison to say the established equities or bond markets — it is important to remember it is just over a decade old — in essence not even “a teenager” so plenty of room to grow.
In my opinion this is extremely exciting.
Investing or trading crypto is a very direct way many “retail hands” can access blockchain and probably for many it’s first and only point of contact.
However, blockchain is MUCH more.
From my own amateur experience of the crypto market, I’ve learnt user cases in blockchain that can transform multiple (and probably all) industries and organisations.
It shouldn’t be a surprise to know that blockchain technology is being explored by many companies all over the world on different industries such as health, education, supply chain management, insurance, financial and charity sectors.
Recently this year JP Morgan, the financial powerhouse posted 34 new blockchain roles on its career site across its office locations. Amazon posted a job just this month for an experienced Blockchain expert to lead product innovation within Defi (decentralised finance).
Most spectacularly, El Salvador has just passed a bill accepting Bitcoin as legal tender alongside the US Dollar. With the on-going narrative of inflation and a weak US economy reeling from the impact of Covid, this move from El Salvador is not only a brave forward thinking one but also strategic in hedging against the value of the dollar. With bullish forecasts of Bitcoin reaching values of $100–200k at some point in the next 12–36 months (based on many functional and technical trading theories), El Salvador’s first mover status, may prove to be an advantage.
There are of course no certainties and despite a focused and concerted effort from Nayib Bukele — the President of El Salvador to ensure adoption of Bitcoin in his country, the influence from institutions including the IMF, media scepticism around governance (or rather lack of) in crypto will mean success is far from guaranteed. Either way this is huge and perhaps be the first of many countries to do the same since blockchain has already been employed as technological solutions to an array of problems.
Presumably because blockchain is the technology of the future.
This is my belief anyway. It is also my belief that such technological capability has a big responsibility in access, inclusion and equity for not only a select few, or of means but for all.
Blockchain technology can create socio, economic impact which can transform the lives of billions of people throughout the world. Crypto tokens exist not only as a digital store of value but also for other strong utility cases. Some are creating a new digital and physical future for us all. Providing access in new ways, better experiences, ownership and security of data.
It has the global impact potential comparable to what the internet did for the world a few decades ago.
Whilst some may snigger or even laugh at such notion, I refer you to this video clip of The David Letterman Show, where Bill Gates was a guest explaining the internet to a mildly sceptical David Letterman. The show was recorded in 1995 — just 26 years ago. I don’t have a crystal ball, but I wouldn’t bet against blockchain.
So why I am writing about this? I wanted to document some of my own crypto, blockchain journey and through a mini series of short articles share some insight into interesting projects, communities and concepts that I have seen which can really impact and shape inclusion.
I want to disclose that I am a very small crypto investor. As such any projects that I invest in, will be made clear and is not an attempt to “shill” or entice you to invest in the same projects. None of what I’ll be writing should be interpreted as financial advice.
I am not a financial advisor. I’m just a guy trying to build a company in the inclusion space and have found that not only should cryptocurrency be seriously considered as the future for finance but that it can provide a much more positive influence to our world.
If you are interested in anything I write about, I encourage you to do your own research also and join in the discussion of what I think is a fascinating and key area of technology that we should all know about.
Written by Man Wong. He/His/Him
A husband, dad and co-founder of CandidateX
