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Richard Boase and his Kenya Experiance

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• davidareallen

  

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  For a few years my wife and I have helped support a student that lives in the area Richard described. We have watched her grow, through photographs and letters, from a shy young girl to a confident young woman. Even though we know how difficult it might be to live there, we really don't understand how incredibly fortunate we are to live here in North America, especially Canada.

  I hesitated to listen to this show at first, because from the title I knew it was not going to be what I wanted to hear. In my mind I had created a fantasy that Bitcoin was going to fix all of the ills of the world, if we simply could send them cell phones and some digital currency. I see now, after this reality check, that this "save the world" stuff, is going to be a much bigger project and I am grateful that Richard Boase made the effort to bring back this story, regardless of how hard it was to hear.

  Posted on August 7, 2014 at 3:26 PM
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• davidareallen

  

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  @davidareallen For a few years my wife and I ....t and I am grateful that Richard Boase made the effort to bring back this story, regardless of how hard it was to hear.

  And then I run across this article.

  http://blogs.cfr.org/development-channel/2014/08/05/banking-with-bitcoin/

  Posted on August 7, 2014 at 4:08 PM
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• Myshadow

  

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  I feel like I need to say this, its probably not a popular opinion and I realise this might start some kind of flame war, but here goes... Richard was incredibly naive to not expect people to be skeptical of a westerner with magic internet money and to think people would care about bitcoin as a return on investment when they can't afford clothes or food.

  The fact he was shocked by this skepticism and the issues faced by people living in third world countries shows a profound misunderstanding of the world we live in. I guess this is the view that most have, having never lived in a third world country, things aren't that bad really and that foreign aid helps third world countries... People like the feeling that they're indirectly helping by supporting their governments who provide foreign aid when this couldn't be further from the truth.

  That said, I have the utmost respect for him, and my heartfelt sympathies go out to him, it sounds like he's having a rough time dealing with the stark realities of life and I can't commend him enough for trying to do something about the situation and bringing back his valuable story.

  However, he paints a bleak picture for crypto's changing things in third world countries which is IMHO completely inaccurate.

  Adoption patterns of tech in third world countries is really no different to a first world country and theres no point in trying to change that coz you couldn't anyway. The early adopters are the entrepreneurs and the tech savvy and most importantly, the people who have disposable income! These people exist in all third world countries, though they are much fewer than in first world countries and generally have alot less capital (though it generally goes alot further so its somewhat relative).

  The best example of tech adoption would be the spread of electricity. In places like Africa, Indonesia and South America electricity is still in the process of spreading, and only the wealthy(comparatively) have access to it, same with Mobile Data, this doesn't mean that electricity won't help the poor of these countries when they manage to get access to it.

  The vast majority of the problems caused in these countries is caused by rampant corruption of government officials, as well as completely unfair distribution of foreign aid (which is usually given to the IMF and World Bank which they then lend to corrupt governments/central banks). Which in turn ruins their economies on a regular basis and prevents people from acculmulating wealth and trying to dig themselves out of the economic hole they're in. Bitcoin will stop this.

  Once the more affluent members of third world countries become aware of this and entrepreneurs start to build businesses around it your average person will see the benefits and we'll see some absolutely incredible changes for the better.

  Posted on August 7, 2014 at 5:16 PM
  Last Edited: August 7, 2014 at 6:57 PM
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• jlg222000

  

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  Great interview. I appreciated Boase's insights into the limitations of Bitcoin, and Boase's perspective that tablets seem unimportant when kids don't have food. I wish there were more programming that discussed the limitations (as opposed primarily to the possibilities) of Bitcoin. The two go hand-in-hand and there is often a reservation about discussing the limits of cryptocurrency.

  One thing that I didn't understand from Boases's interview is the problem that he hoped to solve by donating Bitcoin. From what I gathered, Boase intended to donate Bitcoin so that the Kenyan recipients could have long-term (10+ year) financial investments. This setup seemed doomed to failure. Why expect poverty-stricken people who worry about their next dinner to engage in long-term saving? And, as Boase pointed out, if Kenyans are concerned about the volatility of their local currency, then they'll use US dollars. Why should they go through the technological hoops of figuring out Bitcoin when US dollars are more accessible? And Boase pointed out the problem with asking charities to rely upon a volatile (even if promising) investment such as Bitcoin. It wasn't clear that Boase had identified a problem that Bitcoin could solve in the Kenyan communities that he visited. That's not to say that Bitcoin or the protocol doesn't have potential in Kenya. It's just that donating Bitcoins to charities or individuals in Kenya with the expectation that they would treat it is as a savings account didn't seem wise.

  Again, great interview and thanks to Boase for his insights.

  Posted on August 8, 2014 at 8:59 AM
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• wildjo

  

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  I thought the interview was refreshing. Too many people in similar situations try to sugar coat their success to please supporters, funders, granting institutions. As a result, the same naive mistakes get made.

  It was also interesting to hear the point about value and volatility. Hardware is expensive while wages are low. The smart move is to sell donated hardware to put food on the table. And, we can't expect low income individuals to invest in a technology whose volatility could wipe them out.

  I agree with the posts that we need to focus on the technology, keeping the 6 billion in mind, and make it possible for everyone to adopt it when it's right for them.

  Posted on August 8, 2014 at 6:52 PM
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• dsmalone

  

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  So many people miss the root cause of poverty: Government corruption.

  I think Richard expects Bitcoin to solve the poverty problem when it really is a government problem.

  During his interview he cited several examples of government corruption: 1) He stated data plans for internet usage are 20times more expensive in Africa --> Gov't monopoly of telecom 2) He stated tablets are typically very expensive to purchase --> High gov't tarriffs on imports

  If you want to end poverty, start by taking power away from governments. Bitcoin is the greatest tool that puts power back in the hands of the governed and out of the hands of inept or corrupt governments.

  Posted on August 8, 2014 at 7:32 PM
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• lizardflix

  

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  I didn't find the piece depressing at all. In fact I would describe it as refreshing. My concern about a lot of the rhetoric surrounding bitcoin has been that a lot of users and promoters are so invested in its success (and theirs), that they tend to ignore harsh realities that are always going to come along.

  As much as I admire Andreas and his obvious brilliance, I have to say that some of his pronouncements about the inevitability of bitcoin come across as naive as well. Naivety and brilliance can be a deadly combination. People in Kenya or in any similar situation don't give a damn about empty promises, no matter how much confidence is behind them and aren't going to waste their time with technology that is so undeveloped that it takes hours and hours just to comprehend, much less actually use it.

  I don't know exactly how my computer works but I use it every day. Really smart people spent a lot of time and effort to make this very complicated technology easy for me and my elderly mother to use. We shouldn't need to know exactly how bitcoin works in order to safely and comfortably use it.

  And by the way, people in middle America, hell, people in NYC, the financial capital of the world, aren't going to waste their time with bitcoin as it currently exists. Bitcoin is simply not ready for much more than enthusiasts and investors.

  My preference would be that people start putting all their energy into actually developing the technology to simply make it useful and secure. Worry about that and only that. If some companies want to accept it during this development stage then fine, but stop thinking that people will flock to bitcoin because they can buy some stuff from Overstock.

  The day we stop hearing about the need to print out paper wallets or yet another hacker stealing thousands of dollars worth of bitcoin, will be a start in the right direction.

  So yes, the interview was a wakeup call, but it was a much needed wake up call and the btc community needs a lot more of these so that it can finally put aside some of the more fanciful notions of what the future holds, come back down to earth and work on getting bitcoin into shape for all 7 billion of us.

  Posted on August 9, 2014 at 6:37 AM
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• Pesamob

  

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  Location: Nairobi - Kenya

  Bitcoin Will Work in Kenya. We have started on getting it to work. HOW? Many Kenyans like MLM programs and they participate in large numbers. By these we are NOT talking about the very poor BUT the next level above that. They may NOT have a proper education but they understand Digital Currency. The thing is, the Central Bank of Kenya has placed some restriction on these kind of activities and many are shut down mid stream.

  So, we get our own onto the market and it is taken up quickly and with a lot of enthusiasm. It started as a pastime BUT the interest it sparked was overwhelming. In the beginning we were using an agent of one of the main mobile phone companies who quickly called us and showed us the Central Bank rules and gave us hours to stop using their systems and withheld over Kshs. 80,000/-. The rule says they are NOT to accept any matrix system to use their facilities. This applies across the board for ALL central Bank licensed financial institutions.

  So, do we shut down? No! It is our right to do whatever we want with our money even if the systems are called Ponzi/Pyramid schemes! So we moved into using Mpesa directly and used a manual system to receive and make payments via Mpesa. We did this for close to 90days and transacted just over Kshs. 3Million (about 69BTC) in payouts ALL done manually through Mpesa! We knew this was a short term solution and had looked at our options and went on to explore digital currencies starting from Ripple and then reluctantly landed on Bitcoin! We immediately realised that Bitcoin was fully developed and the structures were in place for automating our payment system. We started talking about Bitcoin. We did this for close to 2months. Lots of articles and videos have been posted at http://www.pesamob.com/blog.php?cid=7.

  Then come last week - September 1st and the whole system was turned into a Bitcoin System! With over 800 members 594 of whom are paid up, there was shock and awe! Despite ALL the warnings, nobody took the admin really seriously BUT a manual system could NOT work much longer. We had to do this. The System has slowed down but there are takers. http://www.Bitx.co.ke is swamped with new wallets being opened. The change slowed us down BUT will NOT stop us .... them - some members have taken it it surprisingly well while others are extremely UPSET!

  We have had several successful transactions in and out and we expect this to grow.

  Kenyans understand Digital Currency and will take to Bitcoin with enthusiam BUT ONLY if they can make some money out of it. Bitcoin is a solution to the central bank problem and it is ONLY a matter of time before other networking programs adopt Bitcoin.

  The Combination of Mpesa and Bitcoin Instantly creates traders in Bitcoin ALL on the phone.

  I know, you will frown at the adoption of what you may call a ponzi scheme BUT Kenyans have ALWAYS had a system called Harambee where they gave without the expectation of a return BUT now, here is a system they give into and expect a return.

  The adoption is quite amazing BUT it will require a great deal of education. We can do this and more. Pesamob will slowly lead us into the remittance sector. When our relatives abroad are educated about Bitcoin, Pesamob members will be ready to exchange Bitcoin in to Kenya shillings and lives will be changed. Kenya receives close to $120M (as of today about 255,000BTC) in remittances per year. The cost of sending this much money to Kenya is about $6.3M (about 13,400BTC). This 13,400BTC or more could quite easily move to the lower levels of the Kenyan society through Bitcoin. They will exchange it for Kenya Shillings among themselves and as soon as they have enough Bitcoins, they WILL not need the regular exchanges Because many individuals will turn into exchangers! We will within a reasonable time become one of the biggest users of Bitcoin. This will help reduce the poverty that everybody is concerned about. Due to this local availability of exchangers, remittances will increase because small amounts can be sent at little cost. The possibilities are huge!

  We have not even mentioned the earnings from farmers that export their Tea, coffee, flowers etc. This is another area that will quickly adopt. WE WILL start asking people from the 1st world to pay us in Bitcoins! We will also demand that they accept bitcoins for our imports! We will educate the world on Bitcoin!

  ALL we need is an education first. This we are carrying out ourselves though a bit slowly BUT surely!

  YOU can help make this a success - a pyramid scheme is frowned upon because the bottom or late adopters are said to lose out. This is true BUT only if we do not have the numbers to make it cycle. The potential to make it cyclical is there ESPECIALLY IF you - a Bitcoiner becomes the Bottom.

  Have you ever heard about the Panare Indians? The story is that a BIBLE THAT says “THE PANARE KILLED JESUS BECAUSE THEY WERE WICKED” was created. It was created specifically for them.

  In 1979, Christian Missionaries went into South America, and encountered the Panare Indians. In their language, they didn’t have words for “evil” and “sin”. So the missionaries were having a hard time convincing them that they needed to accept Jesus. So the missionaries went and customized a bible for them, in which “God” said that the Panare’ killed Jesus, and needed to be saved!

  The Book is - Jesus Against the Indians:Who Won That War? By Xavier James

  Bitcoiners may have to use this kind of Tactic to help Pesamob.com build the Bitcoin Ecosystem. When over 800 people start earning Bitcoins from your partcipation, then it will ONLY be a matter of time Before the whole of East Africa quickly picks this up through our members. Join Pesamob.com and send us your Bitcoins. It is NOT a charity because ALL members have to be paid up BUT you can keep opening accounts until your earnings are used up. Use the link http://www.pesabit.com - this is a revolving URL with 800 members.

  Help us build the Bitcoin ecosystem through Mass Use. Join http://www.pesaBit.com (pesamob) and cause the existing members to earn Bitcoin. This will force them to open Bitcoin Wallets and Learn How to withdraw their Bitcoins. They will then have to cash them or spend them as they are.

  With a membership of 800 people and growing .... this has the potential to spread the Bitcoin Gospel extremely fast. Joining will cost you 0.28BTC. The member under who you join will immediately earn 0.08BTC.

  This is a Pyramid System turned over in that you - a Bitcoin Owner - though interested in the income opportunity would not feel much loss AS the benefits to the less endowed would be much greater. Please Join us.

  The link http://www.pesabit.com is a rotator url for 800 members!

  We intend to go East Africa, Africa and global.

  Bitcoin is OUR ONLY payment System! The System is Already accepting and paying out in Bitcoin automatically!

  The only drawback currently is education. Educating people on what Bitcoin is. There is plenty of stuff on the site so far http://www.pesamob.com/index.php?page=304 and http://www.pesamob.com/blog.php?cid=7 and we keep sending out more especially through the Twitter handle @PesamobCom (https://twitter.com/PesamobCom).

  There are two areas we can focus on one being 37coins.com for which we have already set up a gateway and https://btcjam.com. These two can quickly enable Bitcoin to spread quickly BUT we first need to get Bitcoin to the people.

  How? Through Pesamob.com.

  Where do you come in - find a way of getting Bitcoiners to sign up or you place several accounts in a revolving fund until exhausted. This way, Once the people have earned some Bitcoins, they will HAVE to find a way to Cash it or use it.

  Kenya being the highest adopter of Digital money in the world has huge potential, especially through the use of 37coins which is exactly like Mpesa EXCEPT that now it is global, to quickly enhance the uptake of Bitcoin locally and globally. Remittances to Kenya run into Billions of shillings and therefore Kenyans would immediately benefit from the adoption of Bitcoin NOT to mention tea farmers and coffee farmers.

  There is NO better way to spread the message than through Network Marketing which is already in place and ready.

  Please review this idea and see how you can get involved.

  Help us build the Bitcoin ecosystem!

  Posted on September 9, 2014 at 1:31 PM
  Last Edited: September 9, 2014 at 1:59 PM
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• mzima

  

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  I am a proud member of PesaMob website in Kenya a fully Bitcoin compliant website, (please read how it works) and any bitcoiner interested my link is here http://www.pesamob.com/?ref=askmoses

  Posted on September 14, 2014 at 4:59 AM
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