adopting the cryptocurrency

Over the last few years, the cryptocurrency markets have been a rollercoaster of emotion. The hype that surrounded the 2017 bitcoin bubble was quickly followed by the ‘crypto winter of 2018’ Will 2019 be the year for global cryptocurrency adoption?

Why Cryptocurrency Adoption is Important

While it’s true that both blockchain technology and the Bitcoin cryptocurrency have been around for over 10 years, we are still yet to see mainstream adoption. Think about it like this; When you’re walking through town, how many stores actually allow you to use cryptocurrency as a payment method? The reality is, many of the people who currently own cryptocurrency are simply speculating. While this isn’t necessarily a bad thing, speculation can only last for so long. Eventually, cryptocurrency will need to justify its market value. This can only be done by achieving what that cryptocurrency initially set out to do. As a result, cryptocurrency must serve as digital cash.

The only way cryptocurrency can pull this off is by achieving it’s intended use. This is why adoption and the long-term success of cryptocurrency are so tightly related.

countries by crypto consumers.

Many people in the crypto space believe that developing nations (especially the ones with unstable currencies) are the most fertile locations for large-scale cryptocurrency adoption. The core of this argument is the simple fact that fiat currency (unless you disagree with the idea of it completely) actually works well in developed nations. Cryptocurrency markets often see swings of 10% in value in a day. To most people in developed nations, this is simply too much volatility for everyday currency use. This is why many people believe that fiat currency is a better medium of exchange and store of value.

Cryptocurrency in Developing Nations

Despite this, in some emerging markets, the country’s fiat currency makes the volatility of Bitcoin look like a stable coin. For example, in November 2018, the growing Argentinian inflation rate rose to a whopping 48% in just a month. In Venezuela things are even worse, ending 2018 with an inflation rate of 1 Million percent. With drastic changes like this happening all around the world, the crypto volatility pales in comparison. As a result, to some people, cryptocurrency is significantly more reliable than many local fiat currencies.

In fact, because of this, ground-breaking work has already been done by many cryptocurrency projects such as DASH in Venezuela. Dash attempts to partner up with as many merchants in Venezuela as possible in order to make Dash more readily available in the country. But could there be a better way of sowing the seeds of long-term cryptocurrency adoption in these new markets?

Introducing the World to Cryptocurrency

Nimiq is the worlds first browser-based blockchain. They have recently sponsored with an ambitious plan to increase cryptocurrency adoption in regions of the world that are economically challenged.

Many of the World’s problems are inextricably linked to human development issues. People limited with options, particularly when faced with banking challenges, are more likely to exploit the natural environment around them or turn to crime in order to provide for themselves and their family in the short term, which is why the idea of exploring this real world impact potential beyond the speculative value of cryptocurrency is so important. – Team Nimiq

This new cryptocurrency adoption plan implements a case study approach. They do this by targeting one community at a time. The key to pulling this off is by creating a repeatable and successful process able that they can repeat in other locations in the future. Success on this scale not only has the potential to elevate the status of the cryptocurrency markets in the mainstream media but also; it could disrupt the current models in place for charity and human development. The reason for this is simply because this new Cryptocurrency Adoption Proposal aims to achieve far more than just adoption.

Nimiq suggests that a cryptocurrency powered solution could kickstart the local economy, enabling locals to take part in this global digital economy.

Why this proposal is unique:

  • It’s Open Source: Both the wider cryptocurrency community and other cryptocurrency projects are able to propose changes to this plan or even use it for their own cryptocurrency-related initiatives.
  • Scientific Methods: Implementations of scientific research methods as well as case study techniques have been proposed for this project.
  • Collaborations: This project has collaborated with academic, entrepreneurial and charitable communities alike. This proposal suggests that onboarding other communities outside of the crypto space will strengthen the final process. As a result, the chances of cryptocurrency adoption’s success and the impact of the case study increase.
  • Methodology to foster economic growth: This proposal goes far beyond cryptocurrency adoption. In addition to adoption, it strives to bring positive social changes as well.

The Crypto Adoption Proposal

This cryptocurrency adoption proposal can be broken down into three different phases:

  • Additional Research: The search for case study locations. These locations must be the appropriate size in order to have the highest chances of cryptocurrency adoption. A proposal also arose for a collaboration with the wider cryptocurrency community and academics, further strengthening this process.
  • Forming Partnerships and Outreach: With the main focus on onboarding additional academics, local charities and entrepreneurs in order to increase the chances of successful execution. As well as this, it will enhance the academic value of this case study.
  • Deployment: All the steps necessary in order to make this adoption case study a reality. The deployment phase covers everything from operational processes up to safety precautions.

When looking at the main components of the cryptocurrency adoption case study, it can be broken down into three key areas:

  • Local Exchange: Enabling the conversion of local currency to cryptocurrency and vice versa. Infrastructure for the local exchange is in place in order to incentivize locals to purchase crypto. As well as this, there have been suggestions to make the exchange serve a dual function. This would allow them to act as cryptocurrency education centres for locals also.
  • Incubator: This is a method of stimulating the economy in the case study location. Locals should gain support. Done by giving the tools and knowledge to create their own online businesses and take part in the global digital economy. The key success of this initiative is to gain support from the entrepreneurial community. If this is a success, this could potentially act as a gateway for a new value to enter the economy, slowly trickling down to the locals.
  • Real-World Cryptocurrency AirDrop: This will be somewhat of a local stimulus package, sowing the seeds of free enterprise in the case study location. Everybody in the local community will be given a set amount of free cryptocurrency.

What’s Next?

If you’re thinking this cryptocurrency adoption plan by Nimiq is highly ambitious, you’re right. Currently, the Nimiq team are reviewing several levels of support for the proposal before deciding how best to go forward. For anyone interested in large-scale crypto adoption, there is the opportunity to actively contribute to the initiative with their own views and suggestions. If you don’t have anything to contribute, you can simply show support, helping to make this vision a reality.

At the end of the day, no one really knows how or if cryptocurrency adoption will happen. The important thing is considering different approaches, then pursuing the most promising concepts and ideas. Funnily enough, I don’t think the concept of “if you build it they will come” actually applies to cryptocurrency adoption. Or at the very least, it isn’t the fastest or most optimal strategy. Despite this, I believe that this proposal will work wonders for the crypto space. With better adoption, there is potential for cryptocurrency to disrupt a traditional sector or 2. This would show the media that cryptocurrency is not a niche, and is more than just money for criminals.

What do you think of this Cryptocurrency Adoption Proposal? Do you think it will make a difference? If not, why? Let us know your thoughts in the comments below!

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.