One of the most crucial components to a quality life is “security” and that spans through a lot of areas of a person's existence.
Being physically secure is no doubt the most important - frankly one we mostly pay attention to, however, “being secure” isn't limited to the physical safeguarding of oneself.
Secured finances is an underrated form of security that is pivotal for a quality-filled life, comical enough, even in a world run by money.
Similar to physical security, which requires access to tangible materials, tools, etc, with finances, to be secure, one needs access to specific tools and right now, crypto and blockchain technology is at the top of the list of tools one needs for a secured future.
But microloans, where does that even come in? Let's explore.
Debt is an instrument for growth
When used right of course.
We constantly see people make statements like: I am working so I could live a debt-free life.
Trust that everybody understands where that idea comes from but it is not, however, right to say and build towards, regardless of how we have romanticized it over the years.
How? Well first off, it's not the “debt-free” life we should be gunning for, but a life free from terrible debt - there's a difference!
And secondly, there's really no such thing as a debt-free life because debt is the base layer of everything built in this world, at least since we stopped killing neighboring states and claiming their lands as a hobby.
So long as we continue to rely on a medium of exchange such as “fiat”, we will always be in “debt”. Study the history of money, ignore all that “backed by faith” bullcrap, it's all a front, the reality is that fiat is debt.
To paint a clear picture of what I mean, if I own a piece of land, and someone comes up to me and offers to buy it for $300k. Fundamentally, he or she is making a promise that if I take that money in-exchange for the land, he will in future also accept that money for some other tangible material, whether from me or anyone else, so in essence - he or she is in-debt to trade labor or tangible material for a piece of paper.
Surely, it could sound stupid, especially for people with no knowledge of the gold-age, but that changes nothing as it remains that fiat is a debt instrument that we all trade value for.
Moving along.
Having that picture, we can explore how one should not aim for a debt-free life on a more technical level.
Here's where we look at how debt is an instrument for growth. One of the hard to ignore examples of how “debt” is crucial and powerful is by simply looking at billionaires.
Are there billionaires by cash or assets?
Truth is, they are billionaires by assets and debt.
What debt? The one they consistently acquire by using their assets value as a collateral.
But let's not talk about the rich but rather, more common areas that prove the value of “good debt”.
Inflation, change in product and service demand
Now, this is the reason you should not aim for a debt-free life!
The governments of the world are quite the experts when it comes to fucking up it's people. Look at the numbers, it's really sickening in some nations.
Building your finances with the mindset of being debt-free puts you in a position of “high-risks” to the negative impact of inflation.
Inflation hits on your stacked up wealth, you begin to spend more to maintain a quality life and next thing you know, you're down a handful of value.
And, it doesn't stop there.
Here's where people usually think: I'll have a business bringing in some income or a job.
That is good, trust me. But there are no guarantees that it will be “enough.”
Look at all the strong companies in the world, how many are built and maintained by the funding of “one man?”.
I frankly cannot name any. The first fact is that your business can take a hit in an economic environment stormed by inflation as people like yourself will need to adjust where they spend their money and how much.
And your job? Well, as businesses get hit, some will lay off some workers and others could cut down on salaries. This is all effects of change in public demand which can be influenced by inflation or simply trends.
Having a strategy for building and maintaining one's finances and wealth that includes acquiring good debt is crucial to navigate the world and have a quality-filled life.
Debt enables you to allow your investments such as your business profits and capital to grow, cut back on spending, pay less taxes(Americans favorite) and a lot more.
Microloans with Crypto and Blockchain Technology
This is already a reality, even though not vastly adopted. I looked up some numbers on the size of the microloans industry and I find that it's a hundreds of billions of dollars ecosystem. The reported numbers were not uniform, but all were above $100 billion in estimation with the highest being $177 billion.
This is vastly dominated by the centralized banking system at the time and thus, has its own flaws, majorly rigidity as access is limited and risks are high due to control being central to a few bodies that are most times foreign.
Crypto and blockchain technology will revolutionize this space as we continue to build cheaper and more scalable economies. Recently, USDT on Tron surpassed VISA’s daily volume of $42 billion by hitting $53 billion in 24hrs.
Surely not the best of ecosystem to use as an example for obvious reasons but it gives us a picture of where we are headed.
I heard that USDT on TON enables feeless transactions, well, Hive has been doing it for years too. By capitalizing on growing development of more cost-efficient products, we can have a sustainable ecosystem for building Microloans economies.
Evident in how such services have aided people around the world build, grow and maintain their businesses with projects such as Kiva, by investing in that industry with crypto and blockchain technology as the playing field, we would be enabling global access to value for building profitable businesses and improving global quality of life.