Bitcoin has become extremely popular in today’s market. Although it was previously associated with gamers and those conducting nefarious activities on the dark web, Bitcoin is genuinely reaching its true potential now. While it is most common and is being more widely used by the more affluent members of our society, Bitcoin was created to mitigate the wealth gap around the globe. Satoshi Nakamoto, the person credited with the development of bitcoin, wanted to create a currency that would be free from any centralization.
However, inequality in wealth has become so striking over the years that those belonging to the middle and lower class cannot afford Bitcoin at all. The situation has worsened due to the pandemic and the consequent lockdown that has had a terrible effect on the global economy. However, experts believe that with the rising demand for Bitcoin, its initial goal of mitigating income inequality can be attained.
Helping developing economies strengthen their state of financial literacy
For developing countries, fighting income inequality is challenging and a challenging pathway that requires profound stratification. In developed nations like the US, one of the best ways to fight against income inequality is to encourage people to take ownership over various assets; however, this cannot be applied in developing Nations. However, one thing that is being adopted by almost everyone, even in developing countries, is smartphones. With more people having their smartphones, the use of cryptocurrency is likely to grow even further in the coming days.
Cryptocurrencies need a stable internet connection for their service which means that smartphones are an essential means through which individuals all around the globe can start trading and owning cryptocurrencies like Bitcoin. In 2017, the first effort was made to expand the crypto space in developing countries with a money lending app named MicroMoney that generally helped people deal in cryptocurrencies belonging from developing nations like Thailand, Myanmar, and the Philippines. With over a 1.7billion people around the globe who do not have access to banking services, bitcoin has the potential to reach these people and provide financial services that they are otherwise missing out on.
Providing support to those belonging to the middle class
Unlike corporate banks and fiat currency, Bitcoin works on a network that is entirely separate and is more transparent. Every transaction that takes place using Bitcoin is digitally recorded in a public ledger which is known as the blockchain network. The blockchain network consists of several blocks that hold information about every Bitcoin-related transaction between any two parties. This is a shared database that is highly encrypted and is maintained through peer-to-peer technology. While Bitcoin is still one of the most influential and popular cryptocurrencies globally, other cryptocurrencies have surfaced in the past. Having a currency of this sort has been believed to be extremely important when fighting income inequality in developing countries.
When it comes to fiat currency, it is regulated by a third party such as the government, which can control the economy’s cash flow and the state. This means that inflation can be created for the wealthy, making a higher gap in wealth. When people do not have enough opportunities, they do not have the power to invest or acquire assets. With Bitcoin, people have more opportunities to get their hands on various purchases using blockchain technology.
Bitcoin is now being accepted in multiple real estate ventures, and even severe investors are interested in this cryptocurrency. With the help of this business, model wealth can be distributed more evenly, strengthening the middle class.
Undoubtedly, Bitcoin is a significant currency that can be used by one and all to make investments for guaranteeing a brighter future. So, if you have always wanted to start your journey in the exciting world of cryptocurrency, visit official trading software now for the best opportunities, and you will not be disappointed.