Cryptocurrency has the potential to metamorphose the entire money transfer industry by helping the general masses transfer money all around the globe without any inconvenience and deal with currency exchange and monetary inflation.
Open source peer-to-peer cryptocurrency and decentralized autonomous organization, DASH is a fork of Bitcoin [₿] that was launched in January 2014 by Evan Duffield. DASH has been in demand in the hyperinflation hit areas of Venezuela and Zimbabwe.
Ryan Taylor, CEO of DASH core group said:
“Despite its volatility, cryptocurrency offers a stable alternative for people residing in hyperinflation economies. We are seeing this play out in Venezuela right now, which has rapidly become the second largest market for DASH.”
He further added:
“Zimbabwe’s challenges stem from both a distrust of the financial system and a lack of access to physical cash needed to facilitate transactions. Zimbabwe has also faced hyperinflation in the past, and that memory is a driving force for the adoption of cryptocurrency. ”
Hyperinflation in Zimbabwe in 2008 was a spell of currency instability after the private firms were seized from the landowners towards the end of the Zimbabwean involvement in the Second Congo War. Zimbabwean money had started to lose its value in the years prior to the hyperinflation and the country’s dollar was recalibrated three times.
It was required to use currencies like US Dollars to purchase international goods and services but this came with steep fees. Cryptocurrencies like DASH enable users to make transactions internationally through a secured, decentralized running on a blockchain.
Venezuela’s Bolivar is also experiencing severe inflation. Ryan Taylor claimed that there are thousands of user wallet downloads every month. DASH transactions that are taken by Latin American brokerage firms reported that eighty percent of the cryptocurrency’s volume is generated from Venezuela.
Ryan Taylor commented that all of this illustrates the immense value people see in switching to cryptocurrency when facing hyperinflation. Investing in unstable business environments such as Zimbabwe is infeasible for entrepreneurs without outside assistance.
He added further:
“In the case of Bitcoin and most other cryptocurrencies, the assistance would need to come from altruistic donors. This model suffers from the ‘coattail riding’ problem, since the benefits of expanded adoption would primarily extend to the network, not the donors.”
He also said that Dash’s treasury model ensures that when the network authorizes Treasury-funded grants, the entire network is diluted together and therefore share equally in the cost. No donors are needed in the traditional sense, doing away with the ‘coattail riding’ problem and enabling investments infeasible for other networks.
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