I long maintained that the poverty rates across the world will drop once cryptocurrency takes off. We are dealing with a new economic system that will help lift billions out of poverty.
The Age of Abundance is coming and @actifit is showing the way. It is a prime example of what crypto-economics is all about.
They posted a way to turn convert AFIT in Steem upvotes. As I played with some numbers, I came to the realization how powerful this is all becoming.
Before getting to what Actifit is doing, I wanted to toss out a couple of statistics. I believe they are a bit dated yet they do serve the purpose of what is taking place.
According to the U.N. more than half the world's population lives on less than $2.50 per day. At the same time, 1.3 billion live on under $1.25 per day.
https://www.dosomething.org/us/facts/11-facts-about-global-poverty
Keep these numbers in mind as I go through what Actifit is doing.
For those who are not familiar, Actifit is a Steem-based application that rewards people for moving around. Anyone can earn AFIT tokens by getting a minimum of 5,000 steps in per day. Essentially, this can serve as a form of a basic income for people, especially those in the dire circumstances I just mentioned.
Looking through some accounts, it appears that one who participates regularly can earn around 50 AFIT per day.
The team set a price of .036 STU per AFIT. Using a price of $.393701 per STEEM on coinmarketcap, that means the payout, per AFIT is $.014.. Earning 50 AFIT per day is roughly 71 cents.
While this is not a ton of money for most of the world, for the 1.3B people living on less than $1.25 per day, it is a 57% increase. How would you like to earn 57% more on a daily basis than you do now?
EDIT: @mcfarhat told me the payout is $.036 in USD, not STU. This means the 50 AFIT is worth $1.80. This makes a significant difference for those at the lowest level in our world.
We also must remember, this is one application on one blockchain.
This exemplifies the power of crypto-economics.
While the transition from AFIT to STEEM via the upvote is a bit of a pain at the moment, it does show the possibilities that exist. We are only going to see this get easier as exchanges are set up dealing with the conversion of the different tokens
The system Actifit set up is a three step process. I will not go through it all since it was spelled out in their post.
We are starting to see the potential of cryto-economics in action. One of the things I love the most about the Steem ecosystem is the ability for people to acquire tokens without having any fiat to invest. When dealing with the plight of most of humanity, few are in a position globally to buy cryptocurrency. Hence, we see the reward system as an entry point.
One of the strongholds of fiat currency is that it is what people are paid in. Therefore, people use it since it was given to them. As we see more applications rewarding people in cryptocurrency, that is going to be the mechanism people start to use. Eventually, we are going to see a portion of our monthly expenditures satisfied with cryptocurrency.
There is a lot of discuss about technological unemployment and ideas such as Universal Basic Income to solve the problems. Here we are seeing how cryptocurrency can serve the same purpose without beholding anyone to the government.
By providing an alternate system, we can start to take power away from those entities that have been enslaving humanity.
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