How Bitcoin will benefit the less fortunate (press release)
Most people have argued that cryptocurrencies will only benefit the wealthy. Find out how bitcoin will help to solve poverty.
Cryptocurrencies such as bitcoin have long been considered financial instruments invented to benefit the rich in developed nations. While high-profile asset managers and global corporations lead in biotin adoption, there is also sufficient proof that this cryptocurrency can have a crucial role to play in ending poverty worldwide. Well, here are some reasons showing how bitcoin will help the less fortunate.
Accountability and Transparency in Property Ownership
One of the advantages of cryptocurrencies, in general, is that they foster accountability and transparency in all transactions. As a financial asset, bitcoin will allow more people to own property in a very transparent manner. Being accountable is among the most significant issues hindering the poor from owning property. However, bitcoin's blockchain technology has encryptions that ensure transparent ownership and transfer ledger.
The ability of bitcoin to give the less fortunate ownership of property is one way of ending poverty. Blockchain technology only requires one to have a smartphone, which is quite plenty in developing countries today. That means even low-income families can quickly sign up with bitcoin to start acquiring property.
Relatively Lower Transaction Fees
Traditional financial institutions and even credit companies are rapidly adopting blockchain technology. Its main advantage is that it significantly cuts the transaction fees. Bitcoin transactions are dependent on blockchain technology instead of third parties that banks and other lenders typically use. In almost every transaction, they assign an intermediary to oversee the exchange process.
Using third parties in fiat currency exchange takes a lot of time and comes with added premium risks resulting from the high transaction fees. Bitcoin solves that by eliminating all the intermediaries. That ensures faster transactions at a relatively lower cost, allowing everyone to shop at retail stores using bitcoin easily. The cheaper transfer fees will also enable them to own property without a more significant financial burden.
Unrestricted Flow of Capital
The governments of developing economies usually implement laws and regulations to restrict the movement of capital in and out of their borders. As a result, many individuals don't have access to capital. Unlike fiat currencies, bitcoin is a decentralized digital currency not restricted to any geographical area.
Besides, no government, central bank, or even the bitcoin's inventors can influence its supply. The supply of bitcoin solely depends on its underlying protocol. As such, bitcoin limits the powers of governments and politicians in affecting the flow of money.
The decentralization of bitcoin and lower transaction fees that come with it ensure people can quickly transfer small amounts of money and acquire goods and services at their convenience worldwide. The cheaper transfer of funds internationally will provide better access to capital, which is essential to ending poverty.
Increased Financial Inclusion
One of the common characteristics shared by poor communities is a lack of quality education opportunities, high unemployment rates, and lower living standards. That keeps them secluded from most things that occur in the developed nations. Bitcoin does not require high technical skills except a digital device like a smartphone and internet access.
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Bitcoin has greater divisibility of up to 8 points. One bitcoin is divisible into several smaller units than any other currency in the world. That ensures its distribution worldwide, allowing even those with smaller bits than one bitcoin to engage in day-to-day transactions.
Generally, there are still other concerns about bitcoin, including security and regulation. However, it is a revolutionary financial instrument with more significant potential to foster economic growth and development among poor communities.
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