Who Benefits the Most from Defi & Yield Farming?
"Incredible. Generally speaking, the people who are going to benefit the most from DeFi yield are the ones living in 3rd world/developing countries, especially those with a weak currency against the dollar."
In 2015, The average exchange rate of dollar was 197 Naira. In 2022, Which is this year, the rate is 560 Naira for a Dollar. Crazy right?
Who knows what the rate would be in the next 10 years. Many are curious to know why the Naira is always falling, while others are more concern with leaving the country for greener pastures. It's funny because someone asked me if I'd leave Nigeria if i became a billionaire. And i said No.
Honestly, I don't know what it feels to be a billionaire. However, I know it doesn't cost the same if i were a citizen of the United states or some developed countries.
At the moment, it cost less than $2M to be a billionaire in Nigeria.
Yes, $2M is alot, But tell me, How much do you need to be a billionaire in your country?
Are the Values The Same?
When we compare money, we do so in terms of value. If one dollar equals 560 Naira, can i get the same value with the same worth? For instance, if $1 gets me a bottle of water in America, can 560 Naira get me the same in Nigeria?
Let's take a look at this image
Now what if i told you that a chicken over rice would cost you a equivalent of $5.3 which is 3000 naira.
Yeah, I'm certain you get my point now. The cost of living in Nigeria is expensive. However, the cost of living in America or any where besides Africa is way expensive.
The Ability To Earn In Dollar($) And The Luxury Of Spending In Naira(N) From A Nigerian Perspective
On a regular basis, we wake up to business news informing us about the depreciation of the naira in comparsion to the dollar, due to
A Global Dropping in the price of Oil, which serves as our country's main source of exportation and revenue.
An Unknown Direction in the movement of the Nigerian Economy.
And the poor availability of Dollars in our Foreign Reserves.
In the post above, I shared some of the reasons why the Naira keeps falling. I emphasized on the need to earn in dollars as a Nigerian.
Defi is the future and alot of people are going to benefit alot from it. The rate at which you can make money, save money and also invest in decentralize finance is mind blowing.
Take for instance, Polycub that was introduced some weeks ago has provided lot of profits and investments opportunities too.
Who benefits the most?
The rich gets richer and the poor buys bitcoin
Defi helps bridge this gap as it gives opportunities to the poor. Buying $Cub for example on pancakeswap. Anyone can buy with little money. And you can stake it forever. That's the power of decentralized finance. Not everyone can buy Bitcoin or hodl some random coin on binance.
I recently wrote about how edicted's 2.5 polycub yield helped me get a generator. Polycub is an opportunity that many are taking advantage of. Even With the Yields dropping, it still offers a long term opportunity with Xpolycub.
Hive goes a long way to prove my point. A decentralized Place with alot of opportunities. As a Nigerian, I don't need the same Payout an American needs, as it requires way less to survive. Khal plans to integrate HBD and Hive to Polygon network via Polycub. If that happens, the price of Hive would go up and alot of wallets will look bigger. That certainly means that with just Hive alone, there is so much opportunity and financial growth as a Nigerian.
Who benefits the most from decentralized finance? Is it the Europeans whose cost of living is high but have a good financial system? Or the Africans/developing countries suffering from Bad government?
It would be interesting to read your thoughts.
I am @samostically,I love to talk and write about chess because i benefited alot from playing chess. sometimes i share my thoughts on life in general and i write about my love for hive!
I love to engage with others and i love communication.I believe life is all about staying happy and maintaining peace.
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I can't agree more. Despite it all, the cost of living is what makes Nigeria sweet. I've thought about it, my life is in Nigeria (till or if God says otherwise) because it's so easy to maximize profits and leverage reward pools.