There are a large number of new Bitcoin startups popping up on what seems to be a daily basis these days; however, only a few of these companies are actually helping people in the developing world gain access to the Bitcoin ecosystem. BitPagos is one of these companies, and their goal is to help merchants gain access to bitcoins by selling their goods and services to people all over the world. They market themselves as the opposite of BitPay where merchants can allow their customers to pay with credit cards and then have that fiat converted into bitcoins.
Where Bitcoin is Needed Most
Although Bitcoin has definitely been able to take the developing world by storm, the fact remains that this new form of digital currency is much more necessary in places like Argentina, Venezuela, Kenya, and Southeast Asia. Although the United States and Western Europe have had their economic troubles in recent history, both the dollar and euro are still relatively stable currencies over the short term. In certain developing countries around the world, inflation is in the double digits and there are a large number of economic restrictions placed on people who just want to get their money out of the country. Bitcoin will thrive where there is the most friction in the areas of payments and finance because the new ecosystem it has created is frictionless and censorship resistant.
Lack of Bitcoins in the Developing World
The ironic thing about the need for bitcoins in the developing world is that there aren’t really many bitcoins in these parts of the world right now. Bitcoin mining was not very popular in these countries a few years ago, and most of the bitcoins in existence today can be found in the United States, China, or Europe. Getting bitcoins into these countries is trickier than it sounds, which is why Sebastian Serrano from BitPagos is building an entire company around the idea. Although most people think that the best way to get bitcoins is to buy them off an exchange, the reality is that the best way to attain bitcoins is to barter for them. In other words, people should be selling their goods or services for Bitcoin. After all, the bitcoin is supposed to be a currency, so it may be time for people to start treating it like one.
Immediately Selling Fiat
One of the main criticisms that people make when it comes to Bitcoin is that the vast majority of merchants are actually selling their bitcoins for fiat as soon as they receive them. The one thing that many people in the developed world do not realize is that there are plenty of places around the world where merchants would like to immediately sell their pesos or bolivars for bitcoins. In reality, every government around the world now needs to be a bit more conservative when it comes to printing money. The citizens of the world now have a new way to escape any kind of currency crisis in the form of Bitcoin, and it would seem that there are some merchants who are already looking for a way out of their problematic local currencies. If BitPagos does succeed, it is going to be in those countries where the fiat currencies are the weakest.