Hello everyone...
Since seeing the destructive power of the volcano that caused so much havoc in tonga and other parts of the world, many people have been looking at how they can donate to the kingdom of tonga. A former Tongan lawmaker, Lord Fusitu'a has set up a bitcoin wallet for people around the world to donate in bitcoin to help families affected by the disaster and repair the country's infrastructure.
But this crypto-donation initiative has taken the idea of recovery even further, following the example of the world's first country to turn bitcoin into legal tender. Plans are being made to use the thermal energy from the 12 volcanoes throughout the kingdom of Tonga to mine bitcoin and make bitcoin the legal tender of the kingdom.
Made by me in canva
Thinking beyond the charity that the people affected by the tsunami may receive, I think that the ideas they are proposing to recover the kingdom of tonga using cryptocurrencies are something that can also set a precedent for all those small nations or developing countries.
For example, other countries that have also suffered natural disasters, have had a huge economic impact on their economies, amounting to billions of dollars in disasters and billions more in the direct economy of the country. If we look at Japan and its terrible earthquake in 2011, it cost more than $200 billion. Another very costly natural disaster was Hurricane Katrina in 2005 which cost more than $125 billion. And finally, we have the Haiti earthquake of 2010, which is estimated to have caused a lot of destruction and a huge economic impact of more than $10 billion.
But the big difference in these three examples I have mentioned is that the U.S. and Japan can recover more easily from the economic impact they have done so so far. But Haiti was never able to recover from that terrible earthquake almost 12 years ago, to this day it is very common to see the havoc caused by that earthquake, and even more so when last year there were more tremors.
Also, like Haiti and any other developing country that suffers major disasters, they go into debt with the IMF or other countries borrowing money to try to help lift the country's infrastructure from the ruins, and these debts in some cases prove to be unpayable.
But what if a country has the power to generate its own money from different energy sources, as is the case with Tonga? Well, we would have a nation willing to improve the infrastructure of the country as they wish without the need to enter into unpayable debts with other countries or the IMF. And I say that this will set an important precedent, since other nations that also suffer from natural disasters, will see cryptocurrencies with better eyes instead of an economy that indebts nations and impoverishes them more.
