Hi guys, always love your newsletter! On your TLDR about onchain credit (https://web3forgood.substack.com/i/149469390/tldr-onchain-credit) - I think there is a fundamental misunderstanding around the world when it comes to that. The Web3 world broadly sees onchain credit and financial inclusion exactly the way you explained it. However, in reality it's the total opposite. Poverty-stricken communities and individuals simply do not have the collateral to borrow. The reason people at the bottom of the pyramid borrow is in the main because they do not have money, nor assets/ collateral. The fact that blockchains can eliminate the middleman and automate the process, make it even cheaper, means nothing. Because there is no collateral.
Hi guys, always love your newsletter! On your TLDR about onchain credit (https://web3forgood.substack.com/i/149469390/tldr-onchain-credit) - I think there is a fundamental misunderstanding around the world when it comes to that. The Web3 world broadly sees onchain credit and financial inclusion exactly the way you explained it. However, in reality it's the total opposite. Poverty-stricken communities and individuals simply do not have the collateral to borrow. The reason people at the bottom of the pyramid borrow is in the main because they do not have money, nor assets/ collateral. The fact that blockchains can eliminate the middleman and automate the process, make it even cheaper, means nothing. Because there is no collateral.