Most people think India is doing poorly in economic growth, but the truth is India is doing great in terms of Profit — GDP ratio. Still, the overall development of GDP is slower. Indicating that the country is doing great in improving the profits of earning people, most people are starving on the other hand. So the people’s income is generated at the cost of others sacrificing their food.
The primary reason for this is because India is creating a local economy rather than a globalized one. Most people in India earn their living from other Indians living around them. This doesn’t increase the local living standard because the total value in circulation remains the same.
On the other hand, countries like the US, UK & other EU nations have companies that generate income for their economy by creating global businesses. US companies make $2.1 trillion in income on foreign lands which is the GDP of India. So the US is earning the income that all Indians combined make from their foreign business. This would be a daunting task for companies in India to expand beyond borders; the average VC investment in India is far less than that of the developed nations. But these are all true if there is “no bitcoin.”
2008 — The most significant year in the human race, where people started to thrive on decentralization. Unknowingly the human race began to understand that the businesses and money markets are condensed. This condensed economy created a more accessible mechanism or flow of capital across pockets/nations across the globe.
When people realized its nature of scarcity, they thought it could be the gold of the digital world. In my opinion, gold is invaluable compared to Bitcoin. Gold didn’t impact lives in any way, and it just made rich stay rich. But Bitcoin & Blockchain could impact lives.
Blockchain & Bitcoin are two synonymous terms; obviously, they mean widely different things, but I am using them to represent the underlying potential of the condensed economy. The condensed economy could open up ways for more new things. So how come India or any other developing country could improve their livelihood with bitcoin or blockchain. The answer is simple, Learn about it.
When people start doing business internationally, the main hurdle is the flow of payments. Whether I’m making legal or illegal trade, the flow of capital takes months. Another important thing with business is a trust which is scarce and less through words.
So how does all this stuff linked to the development of an entire nation? As I said, the developed countries are a pool of globalized economies. Alibaba trades on NYSE, Infosys (Indian IT Major) trades on NYSE, Tata Motors (Indian IT Major) trades on NYSE. The mind behind these firms is not from the US, but from different parts of the world, but they could do business in the US and create a condensed economy. This proved a big hurdle in the development of a successful business.
Let me give an example. We’ve three stores in a village in remote India, and there is a Textile one, a grocery store, and a theatre. Everyone in the town uses all the three stuff. The textile owner earns money from the grocery store owner and the theatre owner and spends them on groceries and entertainment. So the net growth of assets remains 0; there is only flow of support, not incremental flow. So for an economy to thrive, it must play a vital role in increasing the nation’s value.
With blockchain & Bitcoin, it’s possible. People can open up many new avenues to flow the external capital into the local market, which will increase the money in circulation and lead to a better life. People get direct access to the international money markets, where there are opportunities to turn idle cash into more lucrative income. The more the people got involved, the more the opportunity.
Most of the cryptocurrency markets are controlled by the stablecoin industry, which represents USD on the blockchain. The developing nations can allow their businesses to have direct exposure to USD and enable enterprises to bring in more dollars to their market, which will improve the standard of living for the people.
The global economic condensation through blockchain is not just limited to the capital or money markets. Even in agriculture, the people can find new sources to supply their products to. The rise of DAO on the blockchain would pay the way for doing business efficiently without friction. The labor markets could turn their dreams into reality using blockchain. There is immense transparency and no need for doubt in doing business with anyone., moreover the blockchain comes with an internal financial eco-system that helps the system improve more than anything.
So this would ease the work of governments as people can work autonomously in generating their condensed economy and capital flow within the global business markets. The way how a country becomes rich is by developing products that are used by people globally. Blockchain would remove these borders and make the services/products accessible to people from every corner of the world and open up new ways of doing business. In the end, it will make everyone a global citizen without fighting for borders but for the globalized condensed economy. The revolution already started and the name is “BITCOIN”