The cryptocurrency began to be used in social ways. Evidence for this can be examples of the emergence of bitcoin and the processes of its production in the everyday life of some people. With the help of mining and mining companies to revive industrial life of «dead» cities, and thanks to the blockchain technology can make transactions from those places where it is impossible to withdraw Fiat assets in the usual way.
Bitcoin for Ghost towns
September 4, Bloomberg published an article about the canadian city of ocean falls in British Columbia, which mining company Ocean Falls Blockchain intends to expand the farm for the extraction of bitcoin and other cryptocurrencies.
The settlement belonged to the mono, because earlier, in the 50s, the residents (about 5,000 people) worked at the same company — the pulp and paper factory. This production requires a lot of energy, so to produce electricity was built dam. It still operates and produces about 13 megawatts of electricity, 75% of which remains unused. The dam is not connected to a transmission line with the North American network, so to sell electricity only to the local communities.
Now the city is home to less than a hundred people are isolated from the civilized world to the nearest centre — Vancouver can be reached only by boat or plane. Cold winters and frequent rains in the offseason does not cause the entrepreneurs desire to move to ocean falls and to open up a business.
But miners who can be called nomads of the 21st century due to the constant moving and change the geolocation in harsh weather found benefit in the organization of mining-farms, for the successful operation of which requires a low temperature, a large room and a huge amount of power.
6 megawatts — more than half of the capacity functioning of a dam — want to buy Ocean Falls Blockchain, thereby reviving the economy in a Ghost town. The firm’s representatives have already begun signing contracts to purchase electricity from the local authorities.
In General, the population and the governing bodies satisfied with the deal, because it will bring «significant benefits and revenues to citizens.» The only thing you need to pay attention to the two parties to the contract — the constantly changing exchange rate of bitcoin and other cryptocurrencies, because originally, when the firm entered into negotiations with the canadian authorities, the price for the first digital asset was more than $11,000.
Bitcoin for remote areas
The use of untapped resources in Canada is not the first example of the exploitation of natural sources of energy and adaptation to climatic conditions. So, at the end of 2017 in the state Duma of the Russian Federation proposed to build a city for mining cryptocurrency in the cities and towns of Siberia, where it is possible to build a large room and suitable weather conditions for ostuzhennoy system of mining.
Then this initiative was made Deputy of the lower chamber of Parliament Boris Chernyshov. According to him, the mining town would help people make money. In addition, mining activity, its regulation at the legislative level, will be in addition to the state budget through taxes. Chernyshov sure if Russia will build such a settlement on the border, for example, with China, it will be of great interest, there will be flows of business travellers.
MP this year, in August, spoke at CryptoBBQ and said that the attitude of the development of the mining-cities has not changed. Mining cryptocurrency, according to Chernyshev, should occur near the largest hydroelectric power plants. This requires minimum support from the state, in this case, the population itself will enter the market.
In the future on the basis of the Russian objects can be created leading technology cluster, which will surpass Silicon valley. But, he added, mining activity is not enshrined in legislation and has no legal status.
Bitcoin for unrecognized States
In the two above examples, the first digital currency increasingly used as investment in promising activities. Contracts concluded via Fiat and represented work that can be realized (or not) in the future. In the case of territories that consider themselves independent but not recognized by the UN, such as Palestine, bitcoin becomes one of the few means of financial communication with all of the economic world.
Unrecognized state, or partly recognized as Palestine, de facto does not have sovereignty, do not have clearly defined boundaries, not fully belong to any territory, and thus they have no own currency. Palestine and the Gaza strip — the most significant and large territory area of the same city Gas, as a payment unit used the Israeli shekel is the official currency of Israel or the US dollar.
The Fiat currency of one country with the regular use of them in another, even unrecognized state, creating a dependency of the economic system. Therefore, in the Gaza strip to carry out transactions with the rest of the world started using bitcoin and other cryptocurrencies, which, in fact, have no Central authority and do not obey anyone.
Palestinian financial analysts estimate that in the partially recognized state now operates at least about 20 informal companies engaged in cryptocurrency and provide services to local users. Customers of crypto-firms use bitcoin to buy investment abroad. Shares are purchased for digital assets and, in some cases, being on the accounts abroad of Palestine, converted to us dollars or other currency. Furthermore, using bitcoins are made online purchases, transfer payments. Because the local system PalPay, according to its functions and name similar to the familiar PayPal, primarily serves customers of the Bank of Palestine, and offers a gateway for global trade.
Digital assets, according to the Palestinians, cheaper, safer and faster than Fiat money. Classic banks due to risks and uncertain status often refuse to work with people from unrecognized States, so crypto-wallets have become an alternative to traditional financial deposited money.
Palestine is not the only country that is in an uncertain political and economic status. But, according to local residents, whose number is steadily growing every year, they are more open to bitcoin. Palestinians in the scale of its territory is not faced with hyperinflation, such as the Venezuelans and the Iranians, who do not have the basic national currency (the inhabitants of these countries are using foreign stable dollar, and the Bolivar and Rial are the secondary currency). Due to the extremely rapid and uncontrolled inflation, for political reasons, crypto-enthusiasts of Venezuela and Iran are forced to keep coins in limited quantities, and Palestine will not think about the amount of digital assets.
In the Palestinian territories is especially important another fundamental property of networks blockchain resistance to censorship when any person, without limitation to carry out the transaction. The state, which in fact does not exist, can not pass a law on the prohibition or permission of the cryptocurrency activities. Therefore, when making the transaction may not be vetoed on the broker (it is necessary in this case as a provider, overcoming all problems of political questions).
It solves a real problem for the population with limited access to the global economy in the context of the ongoing conflict with Israel. Even the supporters in the West have closed their Bank accounts to send money to the Palestinians.
The main problem for digital coins in unstable areas is the constant presence of uninterrupted electricity. After all, cryptocurrency is directly dependent on energy and can’t work outside the network.
In General, the introduction of the blockchain and cryptocurrency allows local businesses to reach a new level of development, gain more confidence and to realize themselves fully. Digital activity implies indifference to social characteristics of the population, the state and other groups in the classic financial system play an important role.