Are you wondering whether Bitcoin can help developing economies? If so, here’s how developing nations could benefit from this cryptocurrency.
Many economic experts tout Bitcoin as a development instrument, especially in developing countries. Perhaps, this explains why this digital currency is gaining popularity in emerging economies. This article explores ways via which Bitcoin can help developing economies.
According to the World Bank, the world has an unacceptably high number of poor people. What’s more, humans have shared the economic growth benefits unevenly across the countries and regions. Governmental collapse, civil wars, and economic chaos also plague most developing areas. High inflation rates and limited financial service access are economic factors that drive poverty in developing economies. Additionally, corrupt institutions interfere with economic development in these regions.
Bitcoin could benefit developing economies by increasing financial services access and solving social trust issues. Today, many people consider Bitcoin to support the economic growth process in developing regions. That’s because this cryptocurrency can enhance financial inclusion and enable institutions to trace funds. Thus, Bitcoin could help people in developing nations escape poverty.
Bitcoin Can Create Opportunities in Developing Economies
There’s no doubt that unemployment is high in developing nations. However, unemployed people in developing countries have smartphones that they can use to access the internet. These individuals can engage in activities like Bitcoin trading and investing. Digital platforms like https://bitcoin-buyer.io/, enable people to purchase and sell Bitcoin for profits. Thus, developing countries can use such avenues to make money by trading Bitcoin.
What’s more, people can now sell products or provide services via the internet and receive payments via Bitcoin. With this virtual currency, you don’t require a bank or financial service provider to act as an intermediary. You can send or receive funds through the Bitcoin network. All you need is a Bitcoin wallet on your smartphone and a stable internet connection.
Today, the world has many platforms that allow retail businesses to operate via blockchain-based points of sales. Such developments imply that Bitcoin can transform business in developing economies.
Bitcoin Can Reduce Corruption in Developing Countries
It’s no secret that one of the development hindrances in developing nations is corruption. Research has shown a relationship between poverty indicators and the population percentage paying bribes. What’s more, experts estimate that corruption increases the total costs of achieving Millennium Development Goals.
Bitcoin can provide an important and innovative way to crackdown on corruption. Using this virtual currency, government project managers can track funds to determine who and how they spend them. Additionally, project managers can allot a specific timeframe to fund spenders to access and spend the money for its intended purposes.
Also, this cryptocurrency can promote transparency using tracking features and data handling. Bitcoin’s blockchain or public ledger stores information in several computers, thereby eliminating the risk of losing it. What’s more, this technology encrypts the data to ensure that nobody can alter the details of every Bitcoin transaction. And everybody in the Bitcoin blockchain network can access this information.
Bitcoin Can Foster Financial Inclusion
Many people want to start businesses in developing countries, but they can’t access capital. Bitcoin enables such people to access money via cryptocurrency crowd-funding platforms. What’s more, they can perform simple tasks online and receive Bitcoin payments, which can serve as their business capital.
The Bottom Line
Bitcoin’s adoption is very high in developing economies. That’s because this cryptocurrency can significantly help people and businesses in these countries. Perhaps, this explains why digital financial service providers like PayPal introduce features to allow people to purchase and store Bitcoins on their platforms. Nevertheless, Bitcoin can benefit developing economies in numerous ways. But people in these countries should understand how Bitcoin works, its pros and cons to benefit from it.
