The economy is Sucre is the Hive economy.
As of last night, there are 21 businesses in Sucre, Venezuela that accept payment for goods and services in HBD and $HIVE. This is up from the 13 just a couple weeks ago.
While this might not be an overwhelming amount, we have to start somewhere. The key to transactions is getting the currency moving around. Unfortunately, these are first layer activities. The Hive economy will really start to thrive once we reach the second tier.
Sucre provides Hive coins with a powerful use case. We fill a need where there otherwise was not a terrific solution. HBD is shaping up to be something that can really help the residents in that region.
The advantage to Hive is we can build things organically. All of this is grassroots. We are completely dependent upon community. Regardless of the aspect of the ecosystem we focus upon, we can see where it is up to individual members to "take the bull by the horns". This requires a shift in mindset as most are accustomed to letting others do things for them.
With this, there are no others. If you have an idea, get it done. It is really that simple. Even if you, personally, do not have the talent, start talking to others. Writer about it and enlist those who might be able to assist in bringing it to fruition.
This is where Hive can excel. As we tap into more markets, we can see different components of the Hive ecosystem expanding.
The combination of social media and finance cannot be overstated.
HBD Penetration
With an area like Sucre, there are two factors to consider. The first is to get money into the local economy. After that, the key is to keep it there.
Here is where the two layers enter.
So far, the expansion is in giving people areas to use HBD. With 21 different locations accepting HBD, individuals are able to use the coin for payments. That is phase 1.
The question, however, is what happens after that?
Most likely, the HBD is moved to an exchange and swapped for another currency, either the Bolivar or [USD](https://leofinance.io/@leoglossary/leoglossary-usd0 (probably the former). Therefore, we see the money exiting the local economy.
We enter the second phase when the merchants realize the value of holding HBD as opposed to swapping it to the local currency. Of course, since bills have to be paid, this means these individuals have to be able to buy for the goods and services they require also.
Economists try to chart this through the idea of velocity of money. This is really a simple formula. It boils down to the amount of money in an economy and the number of times a unit of the currency changes hands over a certain period of time.
HBD changing hands once and then exiting the economy is not the ideal. For the Hive economy to expand in that area, it has to keep moving around through different generations.
People Open To New Ideas When Hurting
The reason why Hive can make a huge difference in developing economies is because of the circumstances that are present. Whether we are discussing Venezuela, Nigeria, Cuba, or India, many are struggling. The economies are suffering in different ways, especially when we break it down regionally. People are having a tough time with corruption, broken trust, and a lack of opportunities.
Hive can offer a solution.
In many ways, this ecosystem still abides by the core tenets of cryptocurrency. Dating back to the days of Satoshi and the Bitcoin white paper, we are carrying the idea of decentralization and removal of the traditional power players forward. This means reduction (elimination) of gatekeepers.
One of the biggest benefits to this is the ability to truly bank the unbanked. We can do this in a digital manner which means less dependence upon banknotes. It also gives people in these localities access to a larger, global economy.
In the developed nations, it is difficult to get people to look at Hive. People, for the most part, will not change unless they have to. Ultimately, much of the developed world is comfortable. This is not the target audience.
The people in areas such as Sucre are a different matter. They are willing to look at things and learn then, simply out of necessity. Human creativity and ingenuity is required since they tend to be failed by most institutions. It is where grassroot movement comes in.
This is Hive's target audience.
Low Barrier Of Impact
We tend to take for granted how much a single vote can make in the proper situation. There are people in this world where a couple dollars makes a major difference. It is a fact that many overlook.
There are many countries where the average salary is miniscule. When we have people making the equivalent of a few dollars per day, this shows the barrier of impact. Get a few dollars heading in that direction on a daily basis and we can see a marked improvement.
It we move this to the collective level, and push it to thousands of people, we can see a region transformed.
This is the potentiality of hive.
My view is that Hive will be an ecosystem that is worth billions in the future. That is a fair bit of value spread throughout the world. The effect in developing nations, if they are the ones who help build Hive, can be enormous.
For us to do this, the only requirement is for people to get involved. Social media allows entry with just a Hive account. After that, one simply takes part in online activity. Since we monetize most aspect of the ecosystem, there is value being captured in coins and tokens that end up in people's wallets.
As Sucre is showing, there only needs to be a few motivated people in the area and the movement can start.
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