The Rising Influence of Rising Affluence

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Latin America’s Wealthy Families Are Buying Up Bitcoin

The cryptocurrency craze suddenly doesn’t seem so crazy in countries that know a thing or two about hyperinflation.
https://www.bloomberg.com/news/articles/2017-12-08/latin-america-s-wealthy-families-are-buying-up-bitcoin

Cryptobuyer transactions in Venezuela have tripled since the beginning of the year, according to Farias. And it’s not just about a young man in Madrid sending money to his mother in Caracas anymore. Farias’s clients include engineers, freelancers, and web designers who demand to get paid in crypto-currencies from their employers abroad, he says. It’s all been an important development for the so-called unbanked—those without bank accounts who keep their money in cash. Because of the growing penetration of smartphones in the developing world, crypto-currencies offer a mechanism for savings and money transfers outside the realm of the banking industry.

“There are countries today without potable water where everyone has a cellphone,” says Farias, who hopes to install 200 crypto ATMs throughout Latin America. “Anyone who has a smartphone can have a bitcoin account, which is something that couldn’t happen before. So its niche really is the whole world.” Farias says the appeal is widening to mainstream companies in places such as Panama, including hotels, as more and more of their clients inquire about using the cryptocurrency as an alternative to cash.