How can we fight inflation in third world countries? If so, here’s how to fight inflation using Bitcoin.
Along with other cryptocurrencies, Bitcoin (BTC) has helped the economic growth of numerous nations. Despite extreme poverty, people in third world countries often use Bitcoin as a digital currency for internet transactions. And this is most likely the result of the accessibility of the internet and participation in the cryptocurrency market.
Many developing countries like India and entire continents like Africa have strong cryptocurrency adoption rates. Bitcoin holders in third world countries can trade BTC for profit or hold their tokens as an investment after acquiring them through their country’s accessible websites.
People from third world countries can now trade with people all over the world due to the decentralized nature of Bitcoin. In theory, an internet connection with a strong crypto wallet is all one needs to start buying and selling bitcoins. Using Bitcoin as a decentralized currency substitute has advantages for individuals and businesses, especially in countries with a significant proportion of unbanked citizens. At Bitsoft360, you can benefit greatly from the decentralized platform.
Low-income individuals may find it difficult to access basic financial services due to unfriendly financial institutions. Since banks almost always have many document requirements and prerequisites, even setting up a simple savings account can be time-consuming for some people. Many people, including business owners who require startup capital, may need help getting a loan.
Traditional remittances, a critical economic lifeblood for many underdeveloped countries, may be replaced by cryptocurrencies. With significantly lower costs, peer-to-peer (P2P) cryptocurrency networks are a potential alternative to using conventional platforms such as Western Union to transfer money across borders.
Countries in Development and Poverty
According to World Vision, 1.3 billion people in 107 developing countries live in multidimensional poverty. And that’s 22% of all people on Earth, 84.3% of whom live in South Asia and sub-Saharan Africa. Financial difficulties, poor health, lack of education, violence and lack of power are just a few examples of the many aspects of poverty.
So the question: “Is Bitcoin useful for underdeveloped countries?” Will it help with any of these issues? Yes, that’s the answer. While the underlying technology, blockchain, has helped numerous businesses outside of finance, developers intended it to primarily address the financial instability caused by relying on centralized institutions.
Using blockchain technology and cryptocurrency solutions does not promise an end to poverty. They certainly paved the way for better services in the countries that need them most. Even in the healthcare industry, blockchain-based technologies like CareAI have improved access to healthcare for underserved groups.
Can Bitcoin Help Bankless Banking?
Currently, more than two billion people are without banking services. Thanks to decentralized economic infrastructures, they can access financial services that are otherwise unavailable.
According to Statista.com, a significant proportion of the unbanked live in countries with unstable economies. In some cases, people may develop widespread distrust of less developed or corrupt financial systems.
Big banks and traditional financial institutions charge a lot for their financial services. For those who are struggling financially, everything can be difficult, including making an initial deposit, maintaining a minimum level, withdrawing money and paying membership fees.
Unbanked people often identify lack of money as the main factor keeping them unbanked. And this is true even in first world countries like the US. Lack of access to baking services exacerbated the gap between banked and unbanked low-income households.
CaptainAltcoin’s writers and guest post authors may or may not have an interest in any of the projects and businesses mentioned. None of the content on CaptainAltcoin is investment advice, nor is it a substitute for the advice of a certified financial planner. The views expressed in this article are those of the author and do not reflect the official policy or position of CaptainAltcoin.com.