While many people believe that Bitcoin can only influence the more affluent section of society, many experts believe it can also solve poverty in various developing countries in the world. A common argument against Bitcoin is that it is an electronic currency that the more affluent section can only access; however, there is a significant lack of evidence regarding the role of Bitcoin in eliminating poverty. Here are some ways and which Bitcoin might come in handy for the less affluent section of society:
Bitcoin provides no Restriction on Capital Flow
The government in most developing countries implement strict laws that restrict the movement of capital to and from other geographical borders. This means that individuals residing in these countries do not have access to sufficient capital. On the other hand, Bitcoin, a decentralized currency, does not have any restrictions regarding capital flow. This means that citizens in developing economies can access money with the help of Bitcoin without the government restriction on it. At the same time, the supply of Bitcoin is uninterrupted by governments, investors, or any Central Bank. Therefore, no external power can come in the way of regular capital flow enjoyed by developing economies by implementing and adopting Bitcoin.
Which can provide higher financial inclusion
Access to top-tier education in developing economies is a struggle for most individuals. With lower educational rates, the standard of living, and unemployment rates, concept waiting is still higher in these economies. This means that a higher percentage of citizens do not have the proper access to financial services, leading to a striking discrepancy. In reality, only those with education and employment are included in financial plans, while the significant section of less fortunate citizens is simply secluded. Bitcoin can be implemented and used by almost everyone as long as they can access the internet. It does not require evolved technical skills, which makes it more inclusive. Provided that smartphones and internet access are granted to the less educated members of society, they can also participate in financial activities, which helps reduce poverty.
Bitcoin is transparent
More than any other Fiat currencies in existence, Bitcoin is more transparent and accountable about every transaction made. This is possible because Bitcoin is run by blockchain technology, which is a public ledger system that is managed by peer-to-peer technology. This means that every individual on the network has access to transactions made without being controlled by an external source. As a result, people can enjoy Bitcoin and its various services much more transparently and in management. It also provides more accountability as the technology is regulated by a public ledger system that records every transaction made. This means that by giving descriptions of the Bitcoin transaction maintained in the general ledger controlled by peer-to-peer technology, people can prove the ownership and their inclusion in the financial plan.
Bitcoin Has a Lower Transaction Fee
Most Financial institutions levy robust transaction fees, which makes it more difficult for poor people. However, their adoption of blockchain technology, on which Bitcoin is based, rampantly reduces transaction fees for all users. This is done because Bitcoin does not have to rely on any third parties by using blockchain technology. External agencies do not need to monitor the exchange processes and are conducted by the system itself through peer-to-peer technology. While the exchange of traditional currencies in all forms requires some transaction fees, it also requires more transaction time as third parties monitor it. As Bitcoin does not need third parties regulating the cash flow, it also reduces transaction time, making all kinds of transfers happen much faster. This means that even those who were financially weaker will have ownership over properties without bearing its brunt.
Hence a strong argument can be made that Bitcoin can eliminate poverty in most sections of society. Moreover, it has significant advantages over Fiat currencies and is not regulated by external bodies like the government. If you want to invest in Bitcoin and have ownership over the most coveted cryptocurrency of all time, learn how to earn bitcoin without spending your money.