Bitcoin will not be widely adopted as a result of intellectual curiosity or because it is theoretically the best form of money ever. Instead, people will start using it because it solves pressing problems in their lives.
So, if you’re looking to further boost Bitcoin adoption, show someone how they can use Bitcoin to solve a problem they have.
Hermann Vivier, co-founder of Bitcoin IcaseThe Bitcoin Circular Economy in South Africa received this advice from Mike Peterson, Director Bitcoin beachthe world’s first Bitcoin circular economy, continues to enrich its work.
The broader problem that bitcoin solves for disadvantaged South Africans is that it provides them with a way to save in an environment where many do not trust banks or do not have access to other investments. Part of the reason they don’t trust banks is that they often incur hidden fees from the banks themselves as well as local merchants.
Vivier told Bitcoin Magazine that many in the community often purchase goods via waiting programs (buy now, pay later) and are often tricked by terms in the fine print of deals.
“You can go in and buy something today, without paying for it at all, take it home and then the merchant starts charging you after the second or third month,” Vivier explained.
“These credit schemes are very exploitative. Fees will rise over time as interest accrues and residents give the company the right to withdraw money from their bank accounts, but buyers do not understand what they are signing,” he added.
“A year later, they see there’s still money coming out of their account, but in their mind, they’ve already finished paying for this thing, yet they’re still paying for it and they don’t know why.”
Vivier went on to explain that the simple fact that funds cannot be automatically withdrawn from a Bitcoin wallet as they can from a bank account provides members of the Bitcoin Ekasi community with a greater sense of control over their funds.
Rich Swisher, Founder a reasona non-governmental organization that works to develop circular economies for Bitcoin and helps its members Unbanked communities in Peru He has become more financially independent, and is also using Bitcoin to help the financially disadvantaged take more control of their money.
Swisher told Bitcoin Magazine that residents of the communities Motiv works with cannot save cash in their homes due to the high possibility of being robbed. Many of them do not use banks because they charge fees that this population cannot pay (if banking is available at all.) Bitcoin provides them with a way to bank themselves, which serves as a financial base for them to start their own projects.
“With Bitcoin, they can start a small business that they can run from their home or from their phone,” Swisher told Bitcoin Magazine.
“Over time they see that they can become financially independent,” he added. “Then, they begin to see that not only do I have a good path to go down now, but if it was all taken away from me tomorrow, I have the knowledge to give it back.”
“None of this would happen without Bitcoin.”
So, does this mean you have to exhaust the funds and start a full circular economy with Bitcoin in an underserved community if you want to see more Bitcoin adoption? Absolutely not.
But how difficult would it be to explain to your friend who runs a nonprofit how to accept Bitcoin for international donations to save on wire transfer fees or to show a family member how to send international transfers using Bitcoin instead of Western Union, which charges high fees for its service? Not that difficult.
If you want to see more people using Bitcoin, stop the habit of explaining to those around you how great it is, and start showing them the problems it solves.
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.