Bitcoin vs HUH Token:Liberating Developing Nations from US Financial Hegemony

Bitcoin vs HUH Token:Liberating Developing Nations from US Financial Hegemony
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This article talks about how Bitcoin and HUH Token are liberating developing nations from US Financial Hegemony

In the US, the financial sector's size as a percentage of GDP inclined from a mere 2.8% in 1950 to 21% in 2019.

This 650% surge represents the recent phenomenon that has been coined "financialization". We might fail to comprehend the scope of this term – given that its use only began steadily rising in 2001, and was virtually non-existent before the 21st century, data from Oxford Languages reveals.

For clarity, financialization refers to the impact felt by both the macroeconomy and microeconomy by altering the structure and operation of financial markets. This process then goes on to shape corporate behaviour and economic policy.

Financialization has been influential in allowing foreign flows of capital. Thus, the inward investment provides jobs and aids the development of emerging economies. Moreover, a strong, well-functioning banking industry can contribute significantly to a country's economic growth. To finance investment, companies rely on banks and financial markets (although this is contingent on how the banking industry was established).

Nonetheless, financialization has caused incomes in the financial sector to rise faster than in other areas of the economy. Since 1980, workers in the US financial sector have seen a disproportionately large increase in their earnings compared to workers in other sectors. Therefore, it cannot be denied that financialization has resulted in greater wealth inequality, both within nations, and between nations (namely, developing countries at the expense of richer, developed nations).

In June 2021, Forbes reported on this detrimental effect of financialization, studying the case of Bitcoin as legal tender in El Salvador to tackle global inequality, and how El Salvadorians could invest in crypto to accumulate wealth robbed from them by US remittance fees. As the global remittance sector's average fee is 6.5%, that's a short-term gain from Bitcoin. In the long haul, however, crypto gives El Salvadorians the opportunity to hold a currency intended to appreciate, rather than depreciate, over time in value.

In contrast to rich Westerners, citizens of developing countries cannot allocate spare capital to nominally appreciating assets, like property and fine art, because it's not big enough to be invested efficiently. They even lose out on earning interest to protect their savings because they're more likely to be unbanked (for example, only 30% of El Salvadorians have bank accounts). Yet deflation would reward early adopters of crypto, such as El Salvador, with disproportionally high capital growth. Those who save some of their income in Bitcoin will be holding an asset class that improves their quality of living. It's no wonder other Latin American, Asian, and African countries are already expressing interest in crypto.

However, this doesn't acknowledge that Bitcoin already has its own elite (0.01%) that controls 27% of the circulating supply, according to The Wall Street Journal. Not much different from the US dollar, Bitcoin ownership is significantly skewed. That means Bitcoin isn't liberating developing nations from US financial hegemony – it's merely transferring inequality from fiat to digital.

Yet faith isn't lost for crypto to free the unprivileged – rather, we should expect utility tokens to do this far more efficiently than Bitcoin. And there's one specific token that has addressed this kind of disparity – HUH Token.

HUH Token is a "uti-meme" that incentivizes its members to hold for longer periods – which is a technique known to accumulate the most wealth. To encourage this, HUH created a two-tier referral system, which is described in the White Paper as "[enabling] everyone to generate HUH tokens: be they in a swarming metropolis like New York or a small African village if they have internet access, they can generate HUH tokens; and as part of the 'rebalancing process' HUH will be facilitating access to technology for everyone, everywhere."

Moreover, HUH's referral system is unlimited, meaning it can be utilized by holders to generate profits. For example, those who refer friends to HUH receive a 10% BNB redistribution on the referee's initial purchase. Both parties get their selling fees permanently reduced from 20% to 10%. Thus, HUH token holders are rewarded for growing the community.

Furthermore, gains from long-term holding are guaranteed via the vesting period. HUH locked in $1 million worth of liquidity over 2 years to prove to investors that the token has a long-term vision as opposed to short-term gains. According to the White Paper, "owners of vested tokens can't withdraw 100% of them directly and has its withdrawal ability limited to the allowance set in the vesting schedule. In our case, during our vesting schedule, gradually more tokens are allowed to be withdrawn prorated to the underlying block time. When the vesting period has been completed, the smart contract will allow holders to fully withdraw their tokens without limitation."

Lastly, HUH occasionally burns tokens to boost the token price. In contrast to traditional government-backed fiat currencies, the HUH Token is designed to present a deflationary trait through its ecosystem dynamics and is expected to increase in value over time owing to, among other things, scheduled token burns. The MPC will make the schedule of token burns and the number of tokens burned at each transaction visible to the community.

HUH Token's spot as #1 in Nigeria indicates that crypto could indeed combat financialization, and give developing nations the power to generate wealth outside of CeFi. As HUH Token is fairly new, we'll be watching closely to see the ways in which they continue to maximize holders' earnings.

Information on HUH gathered from here:

HUH Official Swap- https://swap.huh.social/

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