Cryptocurrency has the potential to provide financial opportunities for disadvantaged people. In addition to providing individuals from low-income and developing countries with easier access to financial systems, cryptocurrencies can also create new economic sustainable businesses/industries.
Developing Countries' & Low-Income People's Financial Problems
Many individuals living in developing countries encounter issues regarding either a lack of access or no access to a banking system and traditional financial market, including some of the following:
High rates of inflation and depreciation of currency
High Costs Associated With International Wire Transfers
Longer/Slower International Money Transfers
Limitation On The Ability To Make Financial Decisions
Thus the use of cryptocurrencies can certainly enhance or resolve these significant financial problems.
Cryptocurrency Provides Access to Financial Systems
Since its inception, cryptocurrencies like Bitcoin and Ethereum have provided individuals the ability to transact funds internationally without the traditional financial system (i.e. Banks). In other words, the use of cryptocurrency provides a way to transfer money in any part of the world, in real-time through the use of electronic transactions.
There are also cryptocurrencies that allow individuals to open multiple accounts in less than a minute. Thus, individuals from developing countries can register online by using their phone and access an account with cash or credit instantly, or send money anywhere in the world quickly and easily without banks.
Using cryptocurrency as a way to conduct transactions can also reduce transaction/transfer costs associated with using a bank or other financial institutions to complete a transaction. For instance, using an international money transfer company typically takes multiple hours or days; however, when you use a cryptocurrency for an international money transfer, the transaction takes seconds; and the transaction fees are often a fraction of what the transaction completed through a financial institution would cost.
Stability Provided by Stablecoins
Stablecoins (e.g., USDT, USDC) allow users to store value in a dollar-pegged stable manner; therefore, individuals/countries who experience hyperinflation or a depreciation of their currency can continue to save in dollars.
🔍 Reality Check
How crypto is changing lives:
Students can pay for their school bills using crypto currency.
Freelancer can receive payments immediately and directly.
Families can send their loved ones money, without having to spend ridiculous amounts of money on transfer fees.
This is a totally new type of innovation that is in the process of creating significant change worldwide.
🆘 Defects
Although crypto has a lot of potential, it still has its issues:
The value of crypto currency can shift dramatically in a matter of days or hours.
There is no back-up plan or insurance protecting your investment.
Scammers and criminals are everywhere in the crypto space, and many people don’t understand how to use or even how to properly protect themselves.
Yet, crypto adoption is increasing each day, because there are tons of people looking for alternatives to failing, outdated systems.
🌈 What will the future hold?
The future for crypto looks very bright!
More countries will begin to adopt crypto on a global scale.
Governments will begin to integrate blockchain technology into their systems
There will be endless opportunities within the Web3 ecosystem.
Interestingly enough, developing countries are not falling behind, but are at the leading edge of this change.
🔥 My Takeaway
The use of crypto is about more than just making money; it’s about giving people a chance to empower themselves.
For the millions of people who have been excluded from financial opportunities that have existed before the rise of crypto, they will soon have a chance to join the global economy.
If you are involved with Hive or LeoFinance, then you are already a part of this revolution!
It's time to get educated, create, and develop.