Sunday, April 21, 2019

Bitcoin and other cryptocurrencies will continue to be relevant since 2.5 billion people still function in black market economies

With the OECD reporting that nearly two and half billion people, or a good 50% of all those eligible to be part of the global labor pool, work in jobs that aren't readily regulated by various governments, it would not come as a shock that one day soon cryptocurrencies could play a much greater role in the financial system.

Nearly two billion people work in it. And it accounts for perhaps 20% of the world’s total economic activity. 
“It” is the black market, or System D, a slang phrase adapted from the French word débrouillard. A débrouillard is a resourceful and self-reliant person. A débrouillard figures out how to get what they need regardless of the obstacles. The obstacles are usually the laws or price controls put in place by the state. 
There are a lot of débrouillards in the world. In 2009, the Organization for Economic Co-operation and Development (OECD), estimated that around 1.8 billion people – at the time, half the world’s working age people — had unofficial jobs that weren’t registered, regulated, or (in many cases) taxed. The OECD estimated that by 2020, two-thirds of the world’s workforce would be part of System D. 
The OECD considers anyone between the ages of 15 and 64 to be “working age.” As of mid-2018, about 65% of the world’s 7.7 billion people were working age; that’s about 5 billion people. If half of them rely on System D to support themselves and their families, that comes to 2.5 billion people. – International Man
 Additionally, the World Bank reported back in 2017 that approximately 1.7 billion people do not conduct business using a banking institution.

What this means of course is that as the internet grows to connect the entire globe together, those needing to, or even simply wishing to stay off the radar will have to find some form of payment system which will allow them to function financially as everything eventually becomes digital.  And these systems appear likely to include Bitcoin or another of the myriad of cryptocurrencies available now, or coming in the future.


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