Most people believe that cryptocurrency will only benefit the rich. Learn how bitcoin will help solve poverty. For a long time, cryptocurrency such as bitcoin has been considered as a financial tool to benefit the rich in developed countries. Although high-profile asset management companies and global companies are leading in the adoption of biotin, there is ample evidence that this cryptocurrency can play a crucial role in the eradication of global poverty. Well, here are some reasons why bitcoin will help the less fortunate.
Accountability and transparency of property ownership
In general, one of the advantages of cryptocurrencies is that they promote accountability and transparency in all transactions. As a financial asset, bitcoin will allow more people to own property in a very transparent way. Accountability is one of the most important issues that prevents poor people from owning property. However, bitcoin's blockchain technology has encryption function, which can ensure transparent ownership and transfer ledger.
Bitcoin's ability to give more unfortunate ownership of property is one way to eradicate poverty. Blockchain technology only needs to have a smart phone, which is enough in today's developing countries. This means that even low-income families can quickly register bitcoin to start acquiring property.
Relatively low transaction costs
Traditional financial institutions and even credit companies are rapidly adopting blockchain technology. Its main advantage is that it can greatly reduce transaction costs. Bitcoin transactions rely on blockchain technology rather than the third party that banks and other lenders usually use. In almost every transaction, they appoint an intermediary to supervise the transaction process.
It takes a lot of time to use the third party in legal currency exchange, and it will bring additional premium risk due to high transaction costs. Bitcoin solves this problem by eliminating all middlemen. This ensures faster transactions at a relatively low cost, making it easy for everyone to shop in retail stores with bitcoin. Cheaper transfer fees will also enable them to own property without greater financial burden.
Unrestricted capital flow
Governments in developing economies often enforce laws and regulations to limit capital flow in and out of their borders. As a result, many people have no access to capital. Unlike fiat money, bitcoin is a decentralized digital currency, not limited to any geographical area. Moreover, the government, the central bank and even the inventor of bitcoin cannot influence its supply. The supply of bitcoin depends only on its underlying protocol. As a result, bitcoin limits the power of governments and politicians to influence capital flows.
The decentralization of bitcoin and the consequent lower transaction costs ensure that people can easily and quickly transfer a small amount of money and obtain goods and services around the world. Cheaper international capital transfer will provide better access to capital, which is crucial for poverty eradication.
Increasing financial inclusion
One of the common characteristics of poor communities is the lack of quality education opportunities, high unemployment rate and low living standards. This keeps them away from most of what happens in developed countries. Apart from digital devices such as smartphones and Internet access, bitcoin does not require very high technical skills. Because many people from poor communities today have primary education, smartphones and Internet access, they can easily trade bitcoin. In addition, today, there are many platforms, such as zbapp, in which the public can join to learn about online trading. This supports financial inclusion and ensures that even the less educated and unemployed have access to capital and trade. Bitcoin has a divisibility of up to 8 points. Compared with any other currency in the world, a bitcoin can be subdivided into several smaller units. This ensures its global distribution and even allows people with less than one bitcoin to trade on a daily basis. Generally, there are other concerns about bitcoin, including security and regulation. However, it is a revolutionary financial tool with greater potential to promote the economic growth and development of poor communities.