There’s a nasty rumor that only the rich could ever benefit from cryptocurrencies. I disagree wholeheartedly! Here are eight reasons why common everyday folk, including those in impoverished nations, might benefit from Bitcoin.
7 Reasons Bitcoin Can Help Those Living In Impoverished Nations
Let’s examine the real-world reasons Bitcoin is beneficial for those living in countries that lack a stable currency. Shall we?
1. Inflation Hedge
Think about what happens when your money slowly loses its value over time. It’s especially tough on working folks who are trying their best to save up for the future. While wealthy people often have things like houses or investments that increase in value when inflation hits, most of us store our hard-earned cash in the bank.
The US dollar loses about 2% of its purchasing power per year. It doesn’t sound like much. But it adds up – imagine watching your savings slowly shrink even though you haven’t spent a penny. It’s like having a small leak in your piggy bank.
That’s why some people are excited about Bitcoin. Unlike regular money that can inflate away into thin air, there will only ever be a fixed amount of Bitcoin. Some see it as a way to protect their savings from that steady drip of inflation eating away at their money’s value.
2. Banking Access
Imagine being turned away from opening a basic bank account because of mistakes in your past or a rough patch in your work history. It happens more often than you’d think. Once you’re out of the banking system, it becomes a frustrating cycle – you need a bank account to get ahead, but you can’t get one because you’re already struggling.
Bitcoin offers an interesting solution. You can participate in the financial world with a smartphone and an internet connection. No one checks your credit score or asks about your employment history. It’s like having a digital wallet open to everyone, no questions asked.
It’s not about replacing banks entirely – it’s about giving people left out a chance to participate in the modern economy, whether they want to save money, send it to family, or buy things online.
3. Low Transaction Fees
Have you ever tried sending money to family in another country? The fees can be jaw-dropping. I’m talking about workers who send part of their paycheck home to support their families, often losing a big chunk of it to intermediaries and transfer fees. For someone working hard to help loved ones back home, watching $20 or $30 disappear in fees on every transfer stings.
Bitcoin shakes things up. Instead of paying hefty fees, people can send money across borders for just a few cents or upwards of a few bucks during high network congestion times. Think about what that means for someone sending $200 home every month! Those savings can add up faster than you think.
Saving a few bucks on transfer fees doesn’t seem like much. But every dollar that doesn’t go to fees is another dollar that can help put food on the table or send a kid to school.
4. Financial Inclusion
Think about how much power banks and financial institutions have over us. If you’re from a community that banks overlook or are underserved, you know what I mean. Getting a loan, opening a business account, or even cashing a check can feel like climbing a mountain.
That’s what makes Bitcoin unique. Bitcoin doesn’t care who you are or where you come from. There’s no bank manager to impress or lengthy application forms to fill out. And, no greedy managers are looking down at you through their noses as they judge you based on your income.
Bitcoin’s availability is excellent for anyone who feels locked out of the banking system. You can participate in the digital economy or accept payments from anywhere without begging a fancy bank manager.
5. Economic Empowerment
Bitcoin gives people power. No one can freeze your account, tell you how to spend your money, or make decisions about your financial life without your say-so. Whether you’re a small business owner who needs more control over your finances or someone who’s just tired of asking permission to use their own money, Bitcoin puts the power back in your hands.
6. Global Market Access
Bitcoin can be a game-changer for folks in remote or underserved areas. As long as you have internet access, you can suddenly do business with people halfway around the world. Think about a weaver in Peru being able to sell their textiles directly to customers in Japan or a coffee farmer in Ethiopia connecting with coffee lovers in Canada – no complicated international banking required.
It’s not just about making sales – it’s about having a fair shot at participating in the global marketplace. When you can receive payments from anywhere in the world just as quickly as someone in New York or London, it levels the playing field. You’re no longer limited by where you were born or whether there’s a big bank in your town.
7. Transparency And Reduced Corruption
Think about what happens in places where money has a habit of “disappearing” between point A and point B. It could be aid money that never reaches the people who need it or tax dollars that vanish into thin air instead of building schools or hospitals. For communities trying to climb out of poverty, this kind of corruption is like trying to fill a 5-gallon bucket with a big hole!
Bitcoin is transparent due to its immutable ledger. Every transaction leaves a digital trail that anyone can check. It’s like having a public record book that can’t be erased or changed.
For example, when a local government says they spent $50,000 on a new bridge, people can verify that money went to the construction company rather than someone’s pocket. When an organization raises funds for disaster relief, donors can watch their contributions reach the people who need help.
It’s not a perfect solution – nothing is. However, this transparency can make it harder for bad actors to siphon off money for needy communities. The bottom line? Public immutable ledgers make funds way more challenging to misallocate.
Conclusion
It’s easy to imagine fat cat Wall Street bankers trying to get rich quickly when you picture Bitcoin. But a more powerful story is happening under the radar – one about everyday people finding new ways to take control of their financial lives.
We’re talking about the single mom who can finally send money home without watching it get eaten up by fees. The small business owner in a remote village sells their goods worldwide. The family living in a country with unstable currency can finally protect their savings.
Bitcoin isn’t a magic solution to all the world’s economic problems. But for people locked out of the traditional financial system, it’s like finding a key to a permanently closed door – until now.
Bitcoin isn’t about making the rich richer. It’s about giving every human a fair shot at building a better financial future for themselves and their families. And that’s something worth paying attention to.
