Let's be real. We see the headlines: Bitcoin surges, Bitcoin crashes. She’s not heavy into technical analysis, where analysts dissect charts, predicting the next bull run or doom. Behind the flashing digits and industry jargon is a human toll. Sometimes, there’s a more human triumph – one that seldom receives the attention it deserves in the media. What does this mean for the volatility that has been affecting people’s everyday lives? This is all the more salient in places where even monetary everyday life is a treat. We don’t mean those who use, not hoard Bitcoin. I’m not here to discuss the speculative value.

Remittances A Rollercoaster Ride?

Let’s say you’re Amahle, a young, single mother in South Africa. Your older brother works in a coal mine hundreds of miles away, sending money home to help support your family. Existing remittance services are costly, time-consuming, and sometimes even unsafe. Bitcoin offered a glimmer of hope: faster transfers, lower fees. Now, that optimism is overshadowed day-to-day by dramatic wild price swings.

One month the Bitcoin he remits gets you enough food to feed your kids for a month. What to expect next Read more → A quick drop cuts two thirds of its value. Now you’re stuck shuffling your budget around to cover the difference. This is not just a numbers game – it’s money for food, school expenses, and the heavy burden of insecurity.

As you know, we love to talk about Bitcoin adoption. More fundamentally, are we even thinking through the ethical ramifications of forcing a highly speculative asset onto communities that are already economically fragile? The promise of financial inclusion should not come at the cost of exposing the newly included to sudden, debilitating losses. It’s akin to giving an individual an invitation to the banquet, then pulling their chair out from beneath them as they sit down.

Think about the stock market. We have rules, circuit breakers and investor protections specifically aimed at preventing the kind of catastrophic losses that could wipe out the average American. Where are the protections against the potential abuse of Bitcoin users in emerging markets?

Small Businesses, Big Bitcoin Gamble?

It's not just remittances. It’s no surprise that small businesses in countries where their local currency is becoming unstable are resorting to Bitcoin as a medium of exchange. Sipho, a craft vendor in Cape Town, began accepting Bitcoin as payment to attract foreign customers and avoid high transaction fees.

At first, it felt like a stroke of genius. He would be able to reach tourists directly without having a huge cut taken for an expensive currency conversion. But then came the volatility. A price crash would potentially eliminate all of his profit for that week. He stays on top of the market, instantly exchanging Bitcoin for local currency. That’s compounded by the stress and complexity that his already challenging job has grown.

This isn't to demonize Bitcoin. It’s not about avoiding all risk. It’s about understanding what risks are present and how they can be minimized. Maybe stablecoins pegged to local currencies would provide a better hedging option. Or perhaps microinsurance products are a better way for businesses like Sipho’s to hedge against Bitcoin’s volatility.

Now it’s time to go beyond the hype. It’s time to work on real solutions that protect our children and other at-risk populations.

Think about farmers using futures markets to protect themselves from price fluctuations in their crops. If so, can we develop the same or similar mechanisms to leverage for Bitcoin users in other emerging markets?

Forgotten Voices Need a Louder Echo

As Julio Moreno of data analysis firm CryptoQuant notes, this is not a sign that long-term holders are losing their cool. Great. But what about Amahle? What about Sipho? Their opinions, unfortunately, are a mere pittance in the cacophony of the Bitcoin battle royale.

The story is usually framed through the lens of the institutional investors, tech gurus, and libertarian ideologues. We’ve all heard the stories of “hodling,” “decentralization,” and the “future of finance.” We don’t hear much about how the volatility and other various risks associated with Bitcoin play out on the ground for everyday folks.

We need to amplify those voices. We need to learn about their challenges, their dreams and aspirations, and their predicaments. Together, we can create a Bitcoin ecosystem that is more inclusive and equitable. We need to put the most vulnerable communities first.

I understand how technological innovation can be exciting. We can do that, while never losing sight of the human cost that accompanies it.

Think about the early days of the internet. As with so many technologies, there was a great deal of hype and promise, along with privacy, security, and access concerns. We're still grappling with those issues today. We should draw the appropriate lessons from those failings and prevent Bitcoin from deepening pre-existing disparities.

Together, let’s make sure Bitcoin does not become a tool of exploitation. If used intelligently, we can move technology’s promise to transform, innovate and improve the lives of many, while doing more to protect those most negatively impacted. The future of Bitcoin depends on it. It depends on us.

Here are a few actionable steps:

  • Support initiatives that provide financial literacy and Bitcoin education to vulnerable communities. Knowledge is power.
  • Advocate for responsible regulation that protects consumers without stifling innovation. A delicate balance is needed.
  • Invest in the development of stablecoin solutions tailored to the needs of emerging markets. Stability is key.
  • Share the stories of people like Amahle and Sipho. Their voices deserve to be heard.

Let's not let Bitcoin become another tool of exploitation. Let's harness its potential to empower and uplift, while mitigating the risks for those who can least afford them. The future of Bitcoin depends on it. It depends on us.