CORVA: Want to Increase Bitcoin Adoption? Focus on Problem-solving.
Bitcoin’s widespread adoption will not be driven by intellectual curiosity or its theoretical superiority as a form of money. Instead, people will start using Bitcoin because it offers solutions to pressing problems in their lives.
So, if you want to promote greater Bitcoin adoption, show individuals how they can utilize Bitcoin to address the challenges they face. This advice was given to Hermann Vivier, co-founder of Bitcoin Ekasi, a Bitcoin circular economy in South Africa, by Mike Peterson, Director of Bitcoin Beach, the world’s first Bitcoin circular economy, and it continues to guide Vivier’s work.
In underserved communities in South Africa, Bitcoin solves a broader problem by providing individuals with a means to save money in an environment where banks are mistrusted, and other investment options are limited. One reason for this lack of trust is the hidden fees charged by banks and local merchants.
According to Vivier, many community members resort to layaway programs (buy now, pay later) for purchasing goods. However, they are often deceived by hidden stipulations in the fine print of these deals. Over time, fees accumulate, and residents unknowingly give the company permission to withdraw money from their bank accounts without realizing the implications.
Vivier emphasizes that the inability to automatically withdraw funds from a Bitcoin wallet, as is possible with a bank account, gives Bitcoin Ekasi community members a greater sense of control over their finances.
Similarly, Rich Swisher, founder of Motiv, an NGO that develops Bitcoin circular economies and helps unbanked communities in Peru become financially independent, uses Bitcoin to empower the economically disadvantaged to take control of their money.
Swisher points out that these communities cannot save cash in their homes due to the risk of theft. Additionally, traditional banking services charge unaffordable fees, if available at all. Bitcoin provides them with the opportunity to bank themselves and establish a financial foundation for starting their own enterprises.
“With Bitcoin, they can start a small business that they can run out of their home and run off their phone,” says Swisher. “They see that they can be financially independent over time. Even if everything is taken away from them, they have the knowledge to rebuild. None of this is possible without Bitcoin.”
Does this mean you have to initiate a complete Bitcoin circular economy in an underserved community to promote Bitcoin adoption? Absolutely not.
However, it is relatively easy to demonstrate to friends or family members how to accept international donations in Bitcoin to avoid wire transfer fees or how to send international remittances using Bitcoin instead of costly services like Western Union. By doing so, you showcase the practical problems that Bitcoin can solve.
If you wish to see increased Bitcoin usage, refrain from merely explaining its benefits to those around you and start demonstrating how it addresses real-world challenges.
(Note: The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.)