This is an editorial opinion by Haider Rafique, global chief marketing officer for cryptocurrency exchange OKX.
As we look back on a wild and bad year in the market, it’s easy to overlook the fact that we’re living through the next technological revolution. Anyone who doubts this just needs ChatGPT to play and imagine how artificial intelligence will change society in the coming years. Market cycles come and go, but innovations built today carry the eternal potential to revolutionize the way we live in the future.
But the unappreciated tragedy of this technological advancement lies in the people who don’t benefit from it. Almost 1.5 billion people around the world are unbanked – cut off from the modern financial system. In times of economic decline, they face steep odds to improve their living standards, let alone take advantage of the latest technology that can improve their lives.
The majority of the unbanked are in developing countries which will be affected by rapid inflation in 2022. This will not go away – the International Monetary Fund (IMF) estimates that inflation in emerging markets and developing economies will be almost twice the rate of development. in 2023.
This past year produced several examples of horrific inflation – in Turkey, annual inflation peaked at 85%. In Lebanon, annual inflation will exceed 100% throughout 2022. Harsh interventionist monetary policies have led to a political crisis, and access to trusted banking services has been disrupted.
It is clear that the systemic risks built into the legacy financial system as well as the policy responses of many governments have failed miserably to serve those most vulnerable to economic shocks.
Bitcoin can help fix this. There is no panacea, but if we are to have any chance of bringing economic equality and financial inclusion to those who need it most, we need the financial revolution led by Bitcoin to be part of the solution.
I know that Bitcoin can help create that revolution. That’s because Bitcoin is:
- Money that does not require an intermediary is transferred anywhere in the world
- It is programmed to be deflationary
- An open, decentralized and permissionless protocol
However, there are massive information gaps that need to be filled before Bitcoin can reach its potential. That’s why first, we need to teach people what Bitcoin is, give examples of what Bitcoin can do for them, and fight for a crypto policy that keeps the unique benefits of the technology intact. This is how we can create the best ecosystem for Bitcoin to be an effective catalyst for change.
Increasing Bitcoin Adoption Through Education
Right now, the global financial climate seems like the perfect storm for Bitcoin advocates to call for greater adoption of bitcoin as a store of value and payment technology.
However, ask the average person on the street what Bitcoin is, and you won’t get a positive answer. We have the bear market, the Three Arrows Capital implosion and the FTX debacle to thank. This highly publicized development has set Bitcoin adoption back several years and has damaged the reputation of the technology that underpins the asset.
In my capacity as chief marketing officer at OKX, I focused on finding a platform that not only markets our business but builds understanding of Bitcoin among a key audience that can become the next wave of adopters. Through our partnership with Manchester City FC, McLaren Racing and the Tribeca Film Festival, we hope that the rising tide will lift all boats.
But awareness is only half the battle. User adoption occurs when people become convinced of a real-world use case for a technology. Theoretical arguments are fine, but this is the world you have created for me. Fortunately, the practical argument for Bitcoin has become very clear after the events of last year:
- Transfer money without intermediaries, fast, cheap: The protocol allows bitcoin transfers anywhere in the world, at any time, without the need for expensive money service providers or complicated bank processes.
- Avoid censorship: There is nothing to prevent others from using the protocol, which has real implications for those in need during traditional banking disruptions, conflicts or rights movements.
- Anti-inflationary store value: The absence of a central supervisory authority means that no one can change the supply of bitcoins or deplete assets through inflation
It takes a lot of work to spread awareness of these benefits and eliminate the distractions. For every Bitcoin advocate, the hard work starts now. Every journey has setbacks and difficulties. But those of us who truly believe in Bitcoin must do everything we can to expand access and awareness of this technology so that it can realize its revolutionary potential.
This is a guest post by Haider Rafique. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.