Economic Perspective

Now that we are in vacation time, and people usually seize the opportunity to travel, it is an excellent moment to gain perspective, experience other cultures, view the world from a fresh standpoint, conduct some introspection, and try to envision our future direction. Today, we will approach this from an economic perspective.

Those of us living in the first world are constantly bombarded by news from our own context. This week, there has been a rise in rates, which is undeniably important. The debate about avoiding a recession and the end of cheap money dominates the headlines and discussions. However, let’s step back and analyze this animated graphic:

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The Brics have recently overtaken the G7 in terms of % of world GDP, and projections indicate that this difference will continue to widen in the future. This presents new opportunities, including for the financial sector, which may witness a threat to the American hegemony.

Consequently, various aspects could change, including the adoption of cryptocurrencies. Let’s take a look at the countries with the highest crypto adoption rates today:

  • USA (46 million)
  • India (27 million)
  • Pakistan (26 million)
  • Nigeria (22 million)
  • Vietnam (20 million)

Now, let’s examine this GDP projection by country for 2075.

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Can you spot the relationship? Countries like Pakistan, India, Indonesia, or Nigeria, which are currently underestimated on the international scene, are the very countries where crypto adoption is remarkable. If their GDP continues to grow as expected, we may witness a scenario in which crypto adoption flourishes organically and sustainably, expanding to other promising countries.

While most of us are closely monitoring American regulation and the battle for ETF approval to allow significant capital inflows into the sector, we may be overlooking a crucial aspect – the millions of people who need access to financial services that are currently prohibited within the traditional system.

This week, with multiple spot #Bitcoin ETFs in the works, @Grayscale has urged the @SECGov to approve them all together to prevent any one of them from gaining a “first-mover advantage.” If successful, we might see a wave of investors entering through the ETFs. Something like the running of the bulls in San Fermin.

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Frankly, I am uncertain about what is better: a staggered entrance or all the doors opening at the same time. In any case, it appears that everyone assumes the doors will open sooner or later.

In conclusion, try to open our economics point of views to the vast wolrd and don’t forget that the potential impact of crypto adoption may open doors to new opportunities and financial inclusion for millions worldwide.

Yours in crypto and AI.