What Role Can Bitcoin Play In Eliminating Poverty?
Celebrities, business experts, and other famous people have endorsed cryptocurrency which has led to the massive growth of trust and credibility of bitcoin. Cryptocurrency has had a great impact on almost all sectors of life. It has made it incredibly easy to invest and gain high returns without having to do something substantial.
The continuous growth of bitcoins and blockchains has made one thing clear – Bitcoin is here to stay for a very very long time. With the clear effects of cryptocurrency in various fields, experts are now of the opinion that it might be destined to accomplish greater things such as the elimination of poverty.
Placed at 150 million in 2021, poverty is one of the major global issues that need immediate attention. Many experts have time and again reiterated their view that cryptocurrency, more importantly, blockchain technology can bring a change regarding this issue. It was back in 2015 that Brian Singer, in an interview for Forbes magazine spoke about the potential of bitcoin in helping reduce poverty.
Let us look at how Bitcoin and Blockchain technology can help the poverty struck mass to alleviate from their position and make financial progress:
- A better understanding of finances – Cryptocurrency has gained a lot of attention in recent years and people from developing countries such as India have been drawn towards it. This has led to a boom in financial literacy. More people are getting to know about cryptocurrency daily. This indicates that there is a big chance that young people, who are more or less aware of and in possession of smartphones and the internet, will be interested in cryptocurrency and finally earn through it as well.
- Boost to philanthropic and charity ventures – Various organizations and institutions are placed in underdeveloped and developing countries to help people by providing them with food, clothing, shelter and education. Most of these NGOs and organizations run with the help of funds. These donations drop in from all over the world, especially from countries which have a lot of wealth, namely the first world nations. However, a consistent problem is that of difficulty in the transaction. Blockchain technology solves this problem once and for all. All transactions that take place in cryptocurrency happen directly and smoothly. They are also transparent. Bitcoin apps such as https://q-profit-system.com/ are simple to use as well. All of these factors make it easier and safer for people to send donations to people who need them.
- Elimination of middlemen – One of the main reasons why people are heavily underpaid is the existence of middlemen. These are the people who assume the role of mediating between employers and employees, buyers and sellers and the like. For their service, they charge a percentage of fees from both ends. This means that the buyer has to pay more for buying a good and the seller has to pay a fee to make the sale. Many times, the need for a middleman evolves due to the lack of transparent modes of payment. Blockchain technology can remove this problem by facilitating direct transactions. This will lead to fewer middlemen involved, an increase in profit for the seller and a decrease in money spent by the buyer.
- Cryptocurrency can boost and regulate people’s savings habits – In most developing and underdeveloped countries, the central problem which leads to poverty in individuals and families is the lack of savings. People don’t earn enough to survive and save at the same time. It is by having savings that one can come out of poverty. Blockchain technology can be of help in this case. It can facilitate people in earning enough through bitcoin which can lead to savings. With third party interference such as banks and government missing from the scene, it will be easier for people to build savings.
Conclusion
Bitcoin can indeed contribute a lot in the process of eliminating poverty from the ground level. Awareness, accessibility, and training can help people from poor socio-economic backgrounds to use bitcoin for improving their lives.
