How Bitcoin can help benefit the poor in developing nations
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A common argument has been that Bitcoin will benefit the affluent members of society. However, experts argue that Bitcoin will most likely solve poverty in most places.
Being an electronic currency, some people assume that Bitcoin is a financial instrument that will benefit top-ranking members of society. Global corporations and high-profile asset managers led in adopting Bitcoin. However, there's no sufficient evidence that this electronic currency will play a crucial role in ending poverty globally. Nevertheless, there are reasons to believe that Bitcoin can benefit the less fortunate.
Here are some of these reasons:
Improved financial inclusion
Most people in the less developed nations lack access to quality education. Consequently, living standards in these nations are low while unemployment rates remain high. And this hinders many people in such countries from access and utilizing financial services. Essentially, most developing countries seclude most of their citizens from things that educated individuals in the developed countries enjoy.
Bitcoin doesn't require technical skills to use. As long as a person has access to the internet and a smartphone, they can use Bitcoin. In poor communities, most individuals have smartphones, internet access, and primary education. That means they can complete Bitcoin transactions. What's more, joining platforms like the Yuan Pay Group is easy, and users can learn to trade this cryptocurrency from their blogs and tutorials. And the capital for venturing into Bitcoin trading on such platforms is relatively low. Thus, even the unemployed and less-educated society members can access and trade Bitcoin.
Unrestricted capital flow
Developing economies' governments implement regulations and laws to restrict capital movement in and out of their geographical borders. Consequently, most individuals in these countries lack sufficient capital access. Since Bitcoin is a decentralized currency, such restricts can't affect it. Therefore, governments in developing economics can't hinder their citizens from accessing capital.
What's more, no central bank, government, or investor can influence Bitcoin's supply. That's because this supply is sole reliance on its underlying protocol. Politicians and governments can't use their powers to control this cryptocurrency's flow.
Bitcoin's decentralization and low transaction fees enable individuals to quickly transfer even a small amount to acquire services and goods conveniently. Cheaper funds transfer internationally provides better capital access, which is crucial in ending poverty.
Low transaction fees
Traditionally, financial institutions and credit companies have always charged customers hefty transaction fees. However, these institutions are now adopting the technology behind Bitcoin. That's because blockchain technology reduces transaction fees for users. Rather than rely on third parties, Bitcoin uses blockchain technology. With this technology, Bitcoin users don't require third parties to monitor the exchange processes.
On the other hand, exchanging fiat currency requires third parties. And this increases transaction time and the overall fees. Since Bitcoin eliminates third parties in transactions, transferring money becomes faster. What's more, even people without bank accounts can now use Bitcoin as long as they have digital wallets. Cheaper transaction fees will enable even people in developing nations to own properties without financial burdens.
Transparency and accountability
Bitcoin promotes transparency and accountability in every transaction. This digital currency is a financial asset that allows people to own it transparently. Also, Bitcoin enhances accountability because blockchain technology provides a public ledger with a record of all transactions.
If people want to prove that their property ownership is legit, they can provide records of their Bitcoin transactions in the public ledger. And this can help in fighting corruption in developing nations.
In a nutshell, Bitcoin can benefit even poor people in developing nations. However, some people have raised concerns regarding regulation and security. For instance, Bitcoin transactions are irreversible, and there's no government agency to file a claim with if your tokens go to the wrong wallet. Nevertheless, Bitcoin is a revolutionary instrument that's still developing.