The pandemic will change everything – not just the way we live, but the way we spend money.
Governments everywhere are trying their best to make good of the global crisis – handing out cash payments, introducing billion (and even trillion) dollar stimulus packages and resorting to the age-old tactic of printing money.
The gap between rich and poor, however, is still on the rise. The World Economic Forum highlighted four ways the pandemic is increasing inequality, and found that the global health crisis only made the world’s wealthiest billionaires richer.
It’s no wonder that the world is now thinking about two things:
But wait – investing in cryptocurrency and a UBI? Do those two things even go together?
With the concept of the UBI having its origins as far back as the 16th century (Thomas More’s Utopia published in 1516) and decentralised cryptocurrencies really only taking off with Bitcoin in 2009, can we join the two concepts together to thrive after the economic crisis?
The Basics: What’s a Universal Basic Income?
The concept of UBI is nothing new – it’s been debated humanity since before you were born.
The idea is simple: everybody should be a guaranteed a basic, regular income, even if they don’t work.
The arguments for and against a UBI really boil down to either:
But the arguments can get a lot more complicated than that – a UBI raises dozens of issues relating to economics, philosophy, governance, political science, power relations, gender equality, labour markets – the list goes on!
In fact, the World Bank in 2020 published a massive 337-page report on navigating the concepts and practices of a UBI.
It’s hard to say how much a UBI would cost – it would differ country to country. In the United States, some say it would cost over $3 trillion per year.
So, how does cryptocurrency get involved?
Put aside the arguments for and against a UBI.
Cryptocurrency provides one of the best ways to fund it – and it would cost national governments either very little or nothing at all.
No, it doesn’t mean the government gives everybody bitcoin.
It involves the private distribution of very specific UBI cryptocurrencies to anybody who wants them. It means providing members of the public a specified amount of these currencies over a period of time – for free.
Yep, they won’t have to pay a dime.
Instead, a cryptocurrency holder can trade in UBI “tokens” for actual dollars. Or, rather, they could hold on to them, ride out the waves, and hopefully make some more money later on. Every crypto UBI works differently.
In what could be called “tokenised UBI”, tokens could be transferred from one person to another – those with more could offer them to those with less.
Remember what the crypto market fundamentally is: it’s rooted in the concept of a financial network that everybody can participate in.
It’s not a gentleman’s club, it’s not ‘invite-only’ and you don’t need to know someone who knows someone.
Just go online or download the app – and you’ll be instantly of the new financial architecture.
But what UBI cryptocurrencies would we use?
There are so many new and untested UBI cryptocurrency projects that are making waves in the blockchain economy right now.
Check out some of these amazing new currencies, which we’ve listed right here.
GoodDollar was launched at the height of the COVID-19 pandemic (September 2020) by well-established e-trading platform eToro.
The whole purpose behind GoodDollar was to create a UBI product not controlled by government but could still sieze the benefits of the public network of blockchain.
The project offers everyday citizens cryptocurrency for free – the G$ coin (also known as a ‘GoodDollar token). Anybody can get their hands on the G$ coin, and then convert it over to a local currency.
The platform supports itself through – that’s right – “supporters”.
It’s basically crowdfunding – these are individuals or organisations who fund G$ supply through staking their own resources in it.
GoodDollar’s goal? To reduce the rampant wealth inequality we are seeing in the world, and create a baseline living standard for people (referred to as “Basic Income”).
Yoni Assia, the Chief Executive Officer of eToro stated:
“If the interest rate and system is not controlled by a country, how is it governed and how can you trust it eventually? Blockchain is a very clear answer – decentralized finance enables us to build this as something which is a common good, which is open source, which is public, transparent, governed by smart contracts in the code, and therefore could potentially scale globally”.
It’s basically the opposite of trickle-down economics: placing the money in the hands of those of the poor (rather than have it fall down from the pockets of the rich).
The results have been mesmerising: in only a couple of days, GoodDollar now has thousands of users and counting. People in Nigeria, Ghana, Venezuela and Senegal have even taken advantage of the new currency.
This blockchain platform is also fresh into the market, emerging from the pandemic in 2020.
Run by a small team in Berlin, Germany, the platform says that:
Anyone who joins Circles receives a basic income regularly, without conditions.
Although there is one catch: once you join Circles, the value of your currency only increases when you become more connected within your community.
It is a “trust” based currency, valued based on the reputation you have built up. You’ll have a small circle you’ll trust (complete with people you have ‘verified’), with whom you’re able to exchange tokens.
If there is no trust, the platform wouldn’t work. You don’t need to be somebody’s best friends – you just need a loose connection with someone (and don’t trust everybody you meet!)
MyUBI is another crypto-based Basic Income program located in Sydney, Australia – with, again, the purpose to eliminate poverty from the world once and for all.
The vision is simple: create a transparent way to deliver “MyUBI tokens” to those people who need it most through blockchain technology. It’s set to be released over a 20-year period.
You’re given a ‘cryptocurrency wallet’ from which you can engage in transactions.
You’re given a very small amount of money a day, but the ‘on the ground’ results looking to be achieved include everything from easing the overspending burden of governments to establishing fresh water projects in developing countries.
In short, MyUBI gives people modest incomes as a stepping stone towards colossal goals.
Forget cash payments – today is the best time to invest in Crypto UBI
Soon will be gone the days of one-off cash direct cash payments and posting cheques in the mail.
Now is the era of new finance: blockchain and distributed lender technology as a new option for future generations to achieve financial security and freedom.
The COVID-19 pandemic has rapidly accelerated the world’s necessity for a unique solution to the unexpected global economic crisis.
In the midst of the chaos, we have the time, the money, the resources and the opportunities to invest in these new finance networks that will form the bedrock of our future.
We must be patient. Nothing is an instant fix, and it’s only through trial and error that we’ll work out the best way forward.
But we owe it to ourselves, and to the next generations, to try.
Invest in Crypto UBI – and be part of the digital finance revolution.
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