Cryptocurrency | A Good Concept Of Supply And Demand For Developing Countries

in LeoFinance6 days ago

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Living in a developing country, or a so-called third world country, you see and experience certain things differently than others that are in a slightly better situation. One of those things is the regulation of pricing on normal items. Or the lack of regulation I should say. I'm sure my country is not the only one that has this problem, so don't get me wrong. The prices only tend to go up, as inflation goes up. And there's rarely a correction downwards. Or maybe if prices increase by 30%, they correct by 0.5%.

This is obviously not a healthy economy. Whether supply and demand are balanced or not, people tend to not want to budge on their prices. Some farmers at the market would rather let their produce rot and throw it away rather than sell everything for a cheaper price. If I have 20 tomatoes, is it better to sell 4 for 5$, make 20 bucks and than throw 16 tomatoes away. Or would I rather sell all 20 for 2 dollars and make a total of 40 dollars. The answer is not that hard to guess for me, and yet some have trouble with the concept.

The bigger picture is often too difficult to see for those that are heavily focused on small-minded goals and have a narrow perspective.

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Cryptocurrency changes that perspective a bit for some people in situations like this. This is because crypto is a more accurate representation how supply and demand should actually work. Without the small-minded or greedy middleman to decide the price, people decide what they want to pay and what they want to earn, rendering a logical peer-to-peer balanced economy.

This is one the reasons in my opinion why it is important for cryptocurrency to be embraced by different people all over the world. Not only does it offer financial opportunity, but it also offers a broadening of economical perspective and mindset.

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Or maybe if prices increase by 30%, they correct by 0.5%.

I've seen in the "media" that the government is trying to monitor and regulate the sector and instruct the sellers to correct the prices. Not happening for all products though (read for baby food, oil and some other products).

It's also not happening on a large scale, but it's progress.

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There is a liquidity issue with the dollar because of all the QE done by the Fed. So I think the crypto system as a payment system will really help to bring in more funds from outside the country in and that will help them develop.

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Yes, the crypto systems enable anyone to partake in global economy, and nobody can do anything about it.

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