- Bitcoin and Third World Economies: Challenges and Solution
Bitcoin has gained huge popularity over the years and one of the primary reasons for this popularity is the ease at which it is accessible. For underdeveloped and poor countries, cryptocurrency can be of great assistance.
Cryptocurrency completely eradicates the requirement of a middleman and offers direct transfer of money. In 3rd world economies, where 30% of the aid is lost due to corruption, Bitcoin can be the best solution, as middlemen will be completely eliminated.
Though this may not be that simple, as in most undeveloped countries a stable internet network can be a problem. It is essential that proper funding is made for the development of proper network connectivity and physical infrastructure. It is also essential that in these countries local communities are encouraged to use all resources to their full potential.
Bitcoin and Third World Economies: Challenges and Solution
Bitcoin offers easy accessibility and peer-to-peer channels, allows the donors and recipients to engage directly, by using smartphones. With the involvement of banks or any other financial channel, confidence of people has also grown in Bitcoin. It also offers the liberty to bypass all local corrupt bodies and directly reach the recipient.
There have been situations in the past where power is vested into military governance or dictatorship, where a few hold the wealth. In these instances crypto can offer great benefit to the people:
- A market that is digitally viable
- Providing a global platform to connect local and small businesses
- Financial capitals will increase
- Assisting in overall development.
Crypto will help in bringing financial stability, thus offering sustainability and helping communities to use natural resources more efficiently, making it a solution that is beneficial to everyone.
Despite having large availability of natural resources, various regions of Sub-Saharan Africa are finding it difficult to get funding and aid, necessary to acquire long term results. This often leads to lack of sustainability or long-running profits, because of which most of the resources get wasted. Bitcoin here can provide the best solution as immediate revenue can be generated by selling the resources into the crypto market.
With an effective push and international aid, crypto has the potential to reboot the growth of local communities and regenerate economic activities.
In the case of repatriation transfers, cryptocurrency deducts a very small percentage of translation and financial fees for each transfer, which in case of subprime payments is very high.
Even the remittance rate in case of cryptocurrency is very less; people could easily send money to their loved ones in other countries at low cost.
It is believed that Bitcoin will be of immense benefit for developing nations in providing a futuristic and innovative stronghold.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investment.
Photo by – Tumisu on Pixabay