The discussion about the potential and usability of cryptocurrency in the real-world environment is something that became a part of the crypto culture. Ever since the early years and the overcoming of any technical doubts about the variability of blockchain as a carrier of value, the concept of their usefulness has taken over.
Yet, the same discussions often take place in tranquil times and peaceful places. They take on a more academic assessment of potential scenarios where things like that could happen. However, in the real world, the realities of the 2019 showcase that this scenario is already developing in many places and not just the regular mentions of some failed or failing states.
All of them are situations where developments are daily and no one can know for sure what will the immediate future begin. But, in precisely those places, the actual future of decentralized cryptocurrencies might be ironing out in front of the world but away from the mainstream media coverage.
Global Financial Flashpoints
Recent weeks and months have, for the first time in many years, shows just how volatile and potentially dangerous cash savings can be. This lesson comes from two big nations, China and India. In the first case, the turmoil in Hong Kong is the one ongoing situation. In India, the banking crisis is underlining the same, even though in a somewhat different manner. For most in the crypto community, the possibility that bitcoin provides is the ideal solution, especially if with further adoption, the volatility would go down.
The mentioned situations are important because they present cases where physical cash is becoming an issue. In Hong Kong, the violence apparently continues to grow and escalate in the streets while at the same time, neither side appears to be ready for any compromise. Recently, it was reported that ATMs across the territory were running short of money. Previously, the leaders of the protest set up an action which asked their members and supporters to cash out and thus impact the local banks. Now, information from the territory is showing that the ATMs are both running out and that queues are forming around them.
The same has been confirmed by people on the ground via social media. Many are fearing that the local government will decide to freeze their assets under the pressure from the Beijing central government. Some suspect that there is a driven effort to devalue the currency and allow it to descend into complete anarchy. This is why analysts are warning that the seizure of assets could become more than a real scenario very soon. However, bitcoin as a currency is no stranger to Hong Kong.
It is already popular in the territory and even the Hong Kong’s Securities and Futures Commission accepted BTC as an asset on its crypto regulation agenda. This document provides guidance for those fund managers on all elements of handling cryptocurrency assets and also how they can deal with ICOs. Outside of this institution, the crisis is escalating and the same fears will make more people turn to bitcoin as a means of protecting their assets from potential seizures. While this comes from a dark place, it would still allow bitcoin and possibly other digital currencies to spike in adoption rates.
Banking Crisis in India
Unlike Hong Kong, the woes of Indians are related directly to their economic sector. Reports shows that the Reserve Bank of India once again this year slashed its growth forecast for an almost one percentage point. The same cuts happened as the economy slows down and this naturally leads to the rising concerns among over a billion of its citizens. As this often happens, there has been a rise in rumors that the general state of the banking sector in India is in a lot of problems.
The banks tried to stop the same rumors from spreading and they gave several statements on social media. Some were so blunt that they made announcements that the users’ deposits are safe, which only made even more people worried. Again, in that environment, like with Hong Kong, the ordinary citizens start thinking of alternative means to protect their funds and here bitcoin comes up as a more and more frequent alternative.
The principle of using bitcoin as a means of protection against instability has been examined often, but it always had the addition of being in an underdeveloped nation or some other place that the mass media easily paints as “troubled”. For example, bitcoin has been a regular occurrence on the streets of Caracas and other cities in Venezuela. However, this narrative was always painted as a dire necessity of people who have no other options or alternatives.
They are already in a completely messed up situation so it is no wonder that in their desperation, they reach out for bitcoin. While this is something the global, especially western audience can easily take in – the notion that cryptocurrencies are basically a step above black market barter – something different is taking place in India and Hong Kong. These locations are not in a state of perpetual strife, while the Chinese enclave is one of the true financial powerhouses of the world. But, situations like these show that cryptocurrencies can be valuable not just to the esports players and tech enthusiasts.
Instead, they provide an intrinsic value in the modern time and the same can wield incredible importance in the lives of ordinary individuals in extraordinary times. With more and more regions facing the prospect of those days – UK and Brexit come to mind immediately, the same potential will not be lost there either.
In fact, it is easy to see the environment where the UK pound starts to crash uncontrollably and people seek shelter. Some might go for gold bullion, but it can be argued that many more will begin to explore (with a lot of urgency and agency) what can bitcoin and other cryptocurrencies do for their cash savings. While not many in the crypto community wish for this kind of adoption environment, it will bring an increase nonetheless.