This is an opinion editorial from Haider Rafique, the global marketing director of the OKX cryptocurrency exchange.
As we reflect on a wild and miserable year in the markets, it’s easy to overlook the fact that we’re in the midst of the next great technological revolution. Anyone who doubts this need only take ChatGPT take a walk and imagine how artificial intelligence will change society in the coming years. Market cycles come and go, but innovations built today provide lasting potential to revolutionize the way we live our lives in the future.
However, the underappreciated tragedy of this technological advancement lies with those who will not benefit. Nearly 1.5 billion people around the world are unbanked — isolated from the modern financial system. In a time of economic downturn, they face daunting odds to improve their standard of living, not to mention take advantage of the latest technology that can improve their lives.
Most of the unbanked are in developing countries that have been hit hardest by rapid inflation in 2022. This isn’t going away: International Monetary Fund (IMF) estimates that inflation in emerging markets and developing economies will be almost double that of advanced ones in 2023.
There were some terrifying examples of runaway inflation last year: in Turkey, annual inflation peaked at 85%. In Lebanon, annual inflation was well above 100% throughout 2022. Heavy-handed and interventionist monetary policy led to political crises and access to reliable banking services was disrupted.
It is clear that the systemic risks embedded in the legacy financial system, as well as the policy responses of many governments, have failed spectacularly to serve those most vulnerable to economic shocks.
Bitcoin can help fix this. Nothing is a panacea, but if we have the chance to bring more economic equality and financial inclusion to those who need it most, we need a Bitcoin-led financial revolution to be part of the solution.
I know that Bitcoin can help bring about that revolution. That’s because Bitcoin is:
- Money that does not require intermediaries to be transferred anywhere in the world
- Programmatically designed to be deflationary
- An open, decentralized, and permissionless protocol
However, there is a huge information gap that needs to be filled before Bitcoin can reach its potential. That is why first, we must educate people about what Bitcoin is, provide 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
Currently, the global financial climate looks like a perfect storm for Bitcoin advocates to demand 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 probably won’t get a positive answer. We have the bear market, the Three Arrows Capital implosion, and the FTX debacle to thank for that. These highly publicized developments have set Bitcoin adoption back by several years and have greatly damaged the reputation of the technology that underpins the asset itself.
As OKX’s CMO, I am focused on finding platforms that not only market our business, but build understanding of Bitcoin among core audiences that could be the next wave of adopters. Through our alliances with manchester city fc, McLaren Racing and the Tribeca Film Festivalwe hope that a rising tide will lift all the boats.
But awareness is only half the battle. User adoption occurs when people become convinced of the real-world use cases for a technology. Theoretical arguments are good, but this is a world of what you’ve done for me lately. Fortunately, the practical arguments in favor of Bitcoin have become abundantly clear after the events of last year:
- Money transfer without intermediaries, fast and low cost: The protocol enables bitcoin transfers anywhere in the world, at any time, without the need for expensive money service providers or cumbersome banking processes.
- Avoid censorship: No one can stop someone else from using the protocol, which has real-world implications for those who need it in times of traditional bank outages, conflicts or rights movements.
- Anti-inflationary store of value: No central supervisory authority means that no one can change the supply of bitcoin or devalue the asset through inflation.
A lot of work will be needed to spread awareness of these benefits and reduce the noise. For all you Bitcoin advocates out there, that 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 fulfill 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.
