Bitcoin is useful and not just a speculative medium
Hi Read.cash readers!, today we will cover an aspect of BTC that is very interesting but underestimated.
Unfortunately, in the vast majority of opinions, BTC, is considered a speculative means to get rich.
Others, insiders, but entrenched in traditional finance, consider it a bubble.
All evaluations that I can not say are wrong, in fact the volatility to which cryptocurrencies are subjected, may partially confirm these perspectives.
But let's try to dwell on some aspects that can make a difference in some socio-economic scenarios.
Let's imagine we are inhabitants of Venezuela, where inflation has reached astronomical values.
Obviously there are immense difficulties to be able to live, as a salary could be used entirely to buy a piece of bread.
A tragedy!
It is obvious that credit institutions become accessible only for a few people.
In these situations, cryptocurrencies can be of help to citizens as banks are no longer needed while transactions remain traceable.
As we know, the Venezuelan government has "coined" the Petro: a stable-coin anchored to crude oil.
In some ways it has not brought the desired results, as citizens have preferred to exchange it with Bitcoin and use it later as legal tender.
On this basis, understood as Bitcoin's usefulness, Data Scientist Matt Ahlborg has covered the topic in depth and in a rigorous manner.
Let's see what it's all about.
Ahlborg bases his studies on data derived and processed from the LBC Exchange (Localbitcoins.com).
Through the study of this data, in particular on transactions, the scholar was able to represent in a diagram the volumes of bitcoin exchange: this diagram is a rectangle within which each state is represented by another rectangle.
The size of the rectangle is determined by the volume of exchanges
Analyzing this diagram we can notice a very important thing: the Eurozone has exchange volumes that are almost half of those of Nigeria.
In fact, what Ahlborg has extracted from his studies is that developing countries have a greater use of BTC than more "advanced" countries.
The study highlighted the possibility of mathematically expressing the value per person transferred.
In order to have a good reliability of the values, it is not sufficient to relate the exchange volumes with the inhabitants of the country under consideration.
In order to refine the result, the formula created by Ahlborg also takes into account the internet penetration among the people living in the country under consideration and the purchasing power parity.
The formula is as follows:
The variables considered are:
V = Volume of BTC
Pr = Equivalent price in USD on the day of trading
IP = Internet penetration in the country under consideration
Po = Population of the country under consideration
E = PPP Purchasing Power Parity of the country under consideration.
Ahlborg called this value Usage per (Online) Economic-Person.
The results of this formula are beyond astounding and we can link back to the colored diagram I gave at the beginning of the article.
Venezuela has a BTC exchange that almost doubles the Eurozone, Russia is even more than doubling the US.
I wanted to dwell on this analysis by Ahlborg, because it numerically proves that Satoshi Nakamoto was right:
Bitcoin will set us free!
The important thing is to understand it!
Have you understood it?
If you haven't figured it out I want to give you a tip, watch this video!