@PeterMcCormack @Dashpay Peter, you couldn't be more off-base about Dash. I've written an open letter, which I kept about 12 levels of respect higher than the language you used toward the Dash community. docs.google.com/document/d/1GP…
I'll post the contents here in what might be a record-breaking tweet storm.
I'll post the contents here in what might be a record-breaking tweet storm.
@PeterMcCormack @Dashpay You are generally correct about the overall conditions in Venezuela; things are desperate. Our Head of Business Development @ernestocontrer is Venezuelan, so we know the situation a hell of a lot better than you. Here at Dash, we care deeply about the situation in Venezuela.
@PeterMcCormack @Dashpay @ernestocontrer We believe that the low-cost instant crypto that Dash provides can improve financial freedom, and we are working hard to have as much impact as we can. We do it by providing users and merchants with time-saving and cost-saving tools to transact.
@PeterMcCormack @Dashpay @ernestocontrer We do this through many charities such as a charity to fund meals for children at school (donate Dash at this address).
XvgMFKiyQTvXzM8vSw3uYzAnNV4tBfGs6D
dashtext.io/charityprogram/
XvgMFKiyQTvXzM8vSw3uYzAnNV4tBfGs6D
dashtext.io/charityprogram/
@PeterMcCormack @Dashpay @ernestocontrer First, Caracas is not the only city with any wealth. There are pockets in other states (FYI, they are not called provinces) and mid-sized cities. Until early last year, even in Caracas, wealthy families refrained from showing it.
@PeterMcCormack @Dashpay @ernestocontrer However, that has changed over the last couple of quarters within Caracas and other cities have followed as well. Cities like Puerto La Cruz and Valencia have many wealthy areas, for example.
@PeterMcCormack @Dashpay @ernestocontrer Income disparity is extremely wide and as you point out, around 80% of the population is considered poor, and many are dependent on state support to even survive. This is why over four million Venezuelans have fled abroad to find work to support their families.
@PeterMcCormack @Dashpay @ernestocontrer Remittances have been growing at a rapid pace (from roughly zero in 2016 to roughly $4 billion in 2019 according to Ecoanalitica), and are usually expensive. You are right that the dollar is now used widely, but that only started to happen last year.
@PeterMcCormack @Dashpay @ernestocontrer Back in 2018, merchants were arrested for accepting dollars, so what you are witnessing today is a rapidly changing situation. The situation there changes within months, not years, and next year will surely be unrecognizable from 2020.
@PeterMcCormack @Dashpay @ernestocontrer We’ve been there since 2017, not two days, so we are deeply familiar with the rapid changes that can occur there. Dollarization is a welcome development, though it also brings its own set of problems for merchants.
@PeterMcCormack @Dashpay @ernestocontrer For example, a lack of lower denomination bills make it difficult to transact. Consumers with a $20 bill that need to buy a prescription at a pharmacy and groceries from the supermarket might run into trouble if neither merchant can make change.
@PeterMcCormack @Dashpay @ernestocontrer Hopefully, that situation will improve. That’s one reason people that have discovered Dash love it. They can put the $20 in a Dash ATM and the lack of change issue is resolved. They can actually buy both the prescription and food. Merchants without dollars are likewise concerned.
@PeterMcCormack @Dashpay @ernestocontrer If they can’t find any singles, they might lose customers who either choose not to transact at all, or never come back because they were forced to buy more groceries than they actually wanted.
@PeterMcCormack @Dashpay @ernestocontrer Physical wear on dollar notes is also a problem and change rate deteriorates the more damaged the note is. Another issue is that Venezuela is a dangerous place.
@PeterMcCormack @Dashpay @ernestocontrer Carrying cash is a real risk for users, and some of Dash’s more prominent merchants have to hire bodyguards to collect cash from locations. Cryptocurrency can address that issue as well.
@PeterMcCormack @Dashpay @ernestocontrer The Petro is certainly the most known project. The government has stated that it has distributed the Petro to approximately 8 million employees and pensioners.
@PeterMcCormack @Dashpay @ernestocontrer Purely from a technical standpoint, it started with many challenges including limited acceptance, liquidity problems, and transaction scalability problems. It did introduce 8 million people to the concept of crypto, which is both good and bad for other projects, obviously.
@PeterMcCormack @Dashpay @ernestocontrer In terms of crypto and what it can address, we are realistic. If a person has no phone, no money, and no access to financial services, crypto is not a solution that can effectively reach them. Dash never purported to be a solution to the humanitarian crisis.
@PeterMcCormack @Dashpay @ernestocontrer Unfortunately, the introduction of any cryptocurrency - Bitcoin included - would only help the middle class and rich. At a minimum, a user needs a phone, which excludes the poorest in Venezuela.
@PeterMcCormack @Dashpay @ernestocontrer Rather than throw up our hands and saying “Oh, well. Too hard.” we have set about creating solutions that address needs there. Other crypto projects try to help from their high-rises in San Francisco.
@PeterMcCormack @Dashpay @ernestocontrer Dash teams are on the ground today understanding problems users face and attempting to solve them. We have never claimed to be used more than the dollar. Usage is still small to be sure.
@PeterMcCormack @Dashpay @ernestocontrer But usage is growing rapidly, people do see value in it, and Venezuela has already progressed the furthest in terms of mainstream adoption globally. In many respects, Venezuela is an ideal proving ground for crypto, and we’ve learned a lot from our time serving that market.
@PeterMcCormack @Dashpay @ernestocontrer High inflation is obvious, but there are other attributes that have led to rapid adoption there. Power outages make payment networks fail. Even when power is on, payment networks are unreliable. Debit card limits make larger purchases difficult.
@PeterMcCormack @Dashpay @ernestocontrer Phone penetration is high enough to access most consumers, though many have basic feature phones (but we still have a solution called DashText for those users). Millions have fled and need a way to send money home without high fees.
@PeterMcCormack @Dashpay @ernestocontrer As for adoption of public blockchains, there are only two that have traction, Bitcoin and Dash. Bitcoin is used primarily as a store of value and primarily by those who have full access to financial services.
@PeterMcCormack @Dashpay @ernestocontrer This is evident in data from localbitcoins.com and many other sources. Dash is used primarily as a way to transact, especially in situations where the existing payment options don’t work well.
@PeterMcCormack @Dashpay @ernestocontrer For example, in Merida, Dash Mall and Parking identified a specific pain point at local malls. Because the debit card networks so often fail to process a transaction, long lines were developing to pay the parking fee.
@PeterMcCormack @Dashpay @ernestocontrer This hurt businesses in the mall because it discouraged customer visits. It also wastes time of people simply trying to pay and leave. Dash solves this pain point by enabling consumers to buy many parking fees worth of Dash at once, and scanning a QR code at the parking cashier.
@PeterMcCormack @Dashpay @ernestocontrer Soon, most of the merchants at the malls were accepting Dash too, who now have thousands of customers armed with Dash wallets. Yes, thousands have been signed up through this solution in a concentrated ecosystem in Merida.
@PeterMcCormack @Dashpay @ernestocontrer Here is a translated quote from one of Dash’s users: “Hello, I am from Venezuela, I have a little story to tell, the truth is that lately in our country we have had great problems to make payments, people make long queues when the points of sale collapse and do not work...
@PeterMcCormack @Dashpay @ernestocontrer "And this has made the life of the Venezuelan more complicated, but the truth is that when I discovered Dash in the store of a relative of mine, my life changed in a significant way!...
@PeterMcCormack @Dashpay @ernestocontrer "I began to use cryptocurrencies as payment methods, I began to see a different change in how I could arrive home earlier thanks to these faster payments, what I like about Dash is that it is not an ornament currency...
@PeterMcCormack @Dashpay @ernestocontrer "It is a currency to give it usefulness and it is what people like me are doing, thanks!”
Although Dash’s usage in Venezuela is still small, it is growing rapidly because we solve real problems.
Although Dash’s usage in Venezuela is still small, it is growing rapidly because we solve real problems.
@PeterMcCormack @Dashpay @ernestocontrer We have about 50,000 Dash wallets on active devices in Venezuela according to Google Play data as of year end. This represents only 0.2% of the population, so it is not shocking at all that you’ve not personally witnessed any usage during your short visit. 
@PeterMcCormack @Dashpay @ernestocontrer Likewise, Dash is accepted at about 1,000 locations (that we know of), which is about 0.5% of the merchant base. Again, I would not be shocked if you didn’t personally walk into a Dash-accepting merchant during your entire visit to Venezuela.
@PeterMcCormack @Dashpay @ernestocontrer Dash’s network-wide transaction count is up 115% year-on-year in the most recent quarter, and much of that growth is coming from Venezuela. However, Dash still only processes about 21k transactions per day.
@PeterMcCormack @Dashpay @ernestocontrer Usage remains low at the locations that do accept Dash, but that is beginning to change given the rapid growth in users. For example, Church’s Chicken reports that about 0.5% of transactions are in Dash, but that is up significantly from about 0.3% back in August.
@PeterMcCormack @Dashpay @ernestocontrer Some Dash-accepting stores see little usage, while others see over 1%. It does take time for users to realize which merchants accept Dash and remember to pull out their Dash wallets when they visit.
@PeterMcCormack @Dashpay @ernestocontrer The Coindesk article you quote at several points has already been debunked. That includes the assertion that Dash gave away phones. That is simply false. Here is the truth.
@PeterMcCormack @Dashpay @ernestocontrer As for why people would use Dash as a MoE, you need to understand the lives of the users we attract. Here are several of the most prominent use cases:
@PeterMcCormack @Dashpay @ernestocontrer 1) Freelancers or people / businesses settling invoices from abroad and have no US bank account. When sending USD from abroad, recipients get the official rate, which significantly impacts the value received.
@PeterMcCormack @Dashpay @ernestocontrer Banks like Bank of America won’t even send wires to Venezuela because of sanctions. It is far better to receive Dash, which can be spent directly at many locations, particularly in Merida and Caracas, without the expense and inconvenience of converting currencies.
@PeterMcCormack @Dashpay @ernestocontrer 2) Self-service remittances directly from exchanges save on transaction costs so they get more spendable money to family members at home. Exchanges are available in Peru, Brazil, Panama, Mexico, and the U.S., which are many of the top locations where citizens have fled.
@PeterMcCormack @Dashpay @ernestocontrer 3) Dash solves security issues compared to cash, and also addresses the lack of small change when dealing with USD.
@PeterMcCormack @Dashpay @ernestocontrer 4) Dash works during a power outage using phone data connections.
5) Dash works using DashText on a basic feature phone, which makes it the only electronic payment option for many users.
5) Dash works using DashText on a basic feature phone, which makes it the only electronic payment option for many users.
@PeterMcCormack @Dashpay @ernestocontrer 6) Transactions are low cost. Bitcoin transactions cost on average $1.07 according to bitinfocharts.com. This is infeasible for Venezuelans to pay, even to open a lightning channel.
@PeterMcCormack @Dashpay @ernestocontrer 7) Dash transactions settle within 1.8 seconds. You don’t seem aware of this fact when you asked why anyone would “Wait for the payment to confirm”. 1.8 seconds is faster than a credit card.
@PeterMcCormack @Dashpay @ernestocontrer Many Dash teams have spent over two years working full time in Venezuela, with Venezuelan teams, Venezuelan businesses, Venezuelan NGOs, point-of-sale providers, payment processors, community organizers, global cryptocurrency organizations and much more...
@PeterMcCormack @Dashpay @ernestocontrer ...looking for the best ways to implement this technology to alleviate some of the huge problems facing the people in the country. Along the way, we have tried and failed at many things. We’ve also identified some things that are working.
@PeterMcCormack @Dashpay @ernestocontrer We simply eliminate what doesn’t work, iterate, and double down on the things that are getting traction. We - as a community - are extremely proud of being the main project working hard to implement cryptocurrency where it is truly needed and where it can make an impact.
@PeterMcCormack @Dashpay @ernestocontrer You have spent two days in Venezuela, and have already concluded that Bitcoin cannot help. That adoption is hard (no shit Sherlock!). You have already boarded a plane back to England to promote your podcast to a wealthy educated base of listeners.
@PeterMcCormack @Dashpay @ernestocontrer Even if you believe Bitcoin cannot help Venezuela, I cannot understand for the life of me why would care that we are helping the people you assume can’t be helped anyway. If it’s too hard for you, go home.
@PeterMcCormack @Dashpay @ernestocontrer We are certain we are making a difference, and will continue looking for ways to impact thousands and hundreds of thousands more.
@PeterMcCormack @Dashpay @ernestocontrer I attended the Satoshi Roundtable last weekend, and the narrative around Bitcoin of “digital gold” is clearly translating into the behavior of leaders within the community. And that’s fine.
@PeterMcCormack @Dashpay @ernestocontrer I happen to believe that cryptocurrencies can become the peer-to-peer digital cash that was the start of this movement as a way of empowering people with financial freedom.
@PeterMcCormack @Dashpay @ernestocontrer So rather than disrespectful baseless attacks my reputation personally, and calling myself and others in the Dash community “scammers”, “spin doctors”, liars, manipulators, “vulture”, and “cultists”, our efforts should be applauded. The only spin doctor here is you.
@PeterMcCormack @Dashpay @ernestocontrer We have data and experience on our side, you have anecdotes and a link to a debunked article that is also backed by nothing but anecdotes. Venezuela needs help. It needs NGOs. It needs dollars. It needs Dash. It needs Bitcoin.
@PeterMcCormack @Dashpay @ernestocontrer What Dash does is provide additional options to people who need them. I am inspired by the work happening in Venezuela, the solution we’ve built, the respectful communications that we do that focus on education and benefits and the partnerships we continue to build in the country
@PeterMcCormack @Dashpay @ernestocontrer We have an announcement coming next week in fact, and many more in the pipeline. So go back to England, dismiss Dash, and leave the work to the people that want to do the hard work.
@PeterMcCormack @Dashpay @ernestocontrer If anyone is reading this and would like to help Venezuelans, hire a Venezuelan for remote work, donate at the charity I referenced above, donate to a Venezuelan GoFundMe gofundme.com/mvc.php?route=…, buy goods from a Venezuelan migrant...
@PeterMcCormack @Dashpay @ernestocontrer ...reach out to @ernestocontrer to find out how you can support Dash teams, or visit dash.org to learn more about our adoption efforts.
If you are Peter McCormack, and think all of this is too hard, jog on.
If you are Peter McCormack, and think all of this is too hard, jog on.
