Although upper-middle class western cybergeeks may be the biggest proponents of cryptocurrency investment, there is a great chance that the worlds impoverished and disenfranchised will also gain from these technologies.

Many people are harmed by not being able to access banking infrastructure or credit, whether from a remote hamlet in the Sri Lankan highlands or an isolated village in an underprivileged urban area of the United States. Many changes that can benefit these underprivileged people, communities, and nations are provided by bitcoin and other cryptocurrencies. Through the reduction of unnecessary remittance costs, improved access to financial institutions, the fight against inflation, and potentially even the ability to eradicate corruption, these technologies have the potential to benefit the underprivileged.

Cryptocurrency Investment in Bitcoin Can Lower Remittance Fees to Developing Countries

People in poor nations frequently receive financial assistance from relatives from more affluent civilizations. They have been dependent on services like Western Union, which impose high costs, for years. Startups in many nations enable consumers to transmit money at substantially lower costs. Rebit, which enables users to send money to the Philippines without incurring significant fees, is a wonderful example. A US-based employee can provide USD in exchange for bitcoins, and the recipient can withdraw the funds in pesos. This is really helpful for the nearly $30 billion sent in 2015 by international workers and their families living abroad.

Marginalized People May Have More Access to Banking Thanks to Cryptocurrencies

Many people in the developed world take credit cards and bank accounts for granted. According to the World Bank, it can be difficult to conceive that up to 2 billion adults worldwide lack access to financial services.

Traditional banking services may be vying for a piece of this multi-billion dollar market. Still, cryptocurrency investment-related services allow the world’s poorest people to interact with the system. These innovations enable them to have a global bank account that can be accessed online with an open-source wallet. There are increasing chances for these people to access banking services through Bitcoin. By 2020, 70% of the world’s population is predicted to have a smartphone, and initiatives like Google’s Project Loon are working on expanding internet connectivity in developing nations. 

Cryptocurrencies and Inflation Control 

For many emerging countries, unstable currencies are a major issue. Zimbabwe is one of the most well-known examples; before its currency was abandoned, it had a peak monthly rate of 79.6 billion percent inflation. Even though this was an extreme circumstance, some nations’ residents and businesses have little faith in their currencies due to political and economic instability. They frequently fall back on exchanging their money for a more secure one, like the US dollar.

Thanks to cryptocurrencies like Bitcoin, people in unstable economies now have another way to hedge against inflation. In part because of this, Vietnam’s VBTC was the first real-world Bitcoin exchange. Another nation whose unstable currency has contributed to increased Bitcoin use is Argentina.

Some believe that cryptocurrencies could aid in the reduction of corruption

Most people are unaware that Bitcoin is pseudonymous rather than fully anonymous. This is so that anyone may check transactions and examine them using the public ledger. Each sender’s and recipient’s Bitcoin addresses are stored permanently. It can be connected to a person’s identification with the correct police work, as has been demonstrated numerous times. For little sums of money, it is straightforward to keep your identity a secret because of how it works, but any large transactions, like in the event of significant corruption, can be much more readily tracked down. There is a chance that a shift to a cryptocurrency investment-based economy could aid in the fight against corruption, which has a big impact on the poor world and is significantly less anonymous than offshore bank accounts because of numerous legal protections. 

Also, read – What are inflationary cryptocurrencies and deflationary cryptocurrencies?

The Potential of Cryptocurrency Investment to Aid Those in Need

Bitcoin and other cryptocurrencies are not a panacea. They won’t be able to simultaneously resolve every issue facing the world and the poor. We need to see them more as instruments that, with the correct planning and intentions, may be utilized to assist poor countries. Cryptocurrency investment can benefit the globe in various ways, with lowered remittance fees, easier banking access, battling inflation, and thwarting corruption, just a few examples. The important question is whether we have the political will and compassion to use these technologies to assist those most in need.