In case you are unfamiliar, Bitcoin Beach is an experiment involving small impoverished beach communities in South America. A Bitcoin enthusiast donated Bitcoin to everyone in town and created a pool of Bitcoin to be used for goods and services to initiate the use of Bitcoin as the only medium of exchange for commerce and employment.
The donation and rules came with a educational project, which taught everyone about Bitcoin, blockchain, bitcoin wallets, and how to buy and sell goods and services denominated in Bitcoin. The Lightening network was used to make the microtransactions and to create microtransaction fees.
The result was an economic turnaround where businesses which existed at the start of the project increased in size and revenue, plus people created new jobs, new businesses, the community underwent a renasance of building improvements, the youth became heavily involved, and both gang activity and drugs declined a lot.
The cause of the turn around was not some sort of Bitcoin Magic, it was the economic reality of increasing the velocity of money, as in Bitcoin was circulating fast throughout the community. It wasn't hoarded in a wallet, it was spent every day.
Analysis of money flow showed money stopped leavng the community and just circulated faster and wider amongst the population.
The magic was economics, peer to peer transactions, and a unit of account, which was also a store of value, which had a tamper proof ledger.
Lessons for Hive
Utility; one of the most important aspects of money's value is it's utility as a medium of exchange, unit of account and store of value.
Bitcoins Peer to Peer transactions elminated banks and other middlement, the rules kept the money in the community, and Bitcoin became a a store of value, worth goods and services, because the people used it to buy goods and services.
Here on Hive we need to use our token HBD as a medium of exchange, by using it to purchase goods and services from other community members here on Hive.
We need to use it as a unit of account, with the blockchain ledger serving as a record of all transactions.
And if we use it in this way, it will become a store of value, worth an hour of labor or a pound of food.
Utility is the true killer app which makes people adopt tools.
Hive Business Center is dedicated to creating a list of all Hive Businesses accepting HBD and outside businesses accepting HBD. Plus promoting the use of HBD to purchase items.
Ultimately it is up to the community to create our own Hive Coin Beach. @shortsegments
