Wednesday, 1st December 2021
<To guardian.ng
Search
Breaking News:

How Bitcoin promotes financial inclusion

By ...
01 November 2021   |   6:23 am
Although the traditional banking systems will remain functional for many years to come, digital money is the future currency that gives people financial freedom. And Bitcoin is the most popular currency that would make that vision possible. Most people currently use Bitcoin to pay for products and store wealth safely, without outside manipulation.  Bitcoin and…

(FILES) In this file photo taken on December 17, 2020 shows shows a physical imitation of a Bitcoin at a crypto currency “Bitcoin Change” shop, near Grand Bazaar, in Istanbul. (Photo by Ozan KOSE / AFP)

Although the traditional banking systems will remain functional for many years to come, digital money is the future currency that gives people financial freedom. And Bitcoin is the most popular currency that would make that vision possible. Most people currently use Bitcoin to pay for products and store wealth safely, without outside manipulation. 

Bitcoin and its underlying blockchain technology offer unique benefits, facilitating alternative financial infrastructures for those without access to banking services. Here’s how Bitcoin promotes financial inclusion. 

Decentralized Monetary System 
Central bank-issued fiat currency has been the basis of financial transactions for centuries. However, they are very restrictive because fiat currencies are subject to government and institutional influence. Bitcoin is a decentralized monetary system without ties to any authority or jurisdiction. That enables users to send and receive money across geographical borders at their convenience, without going through the traditional institutions. 

Bitcoin’s decentralization also enables users to acquire and store wealth anywhere in the world. That means you can always spend your money as you wish, significantly promoting financial freedom. While Bitcoin’s autonomy from regulatory restrictions is the primary characteristic that makes it highly volatile, it also allows the currency to maintain its purchasing power over time.  

Easy Access to Capital 
The traditional financial systems usually require users to open bank accounts and visit the institutions each time they need to transact. However, more than 1.7 billion people in the world currently lack access to banking services. That completely cuts those populations out of the global financial platform. Using Bitcoin does not require any paperwork or a visit to any service provider. Instead, users only need a smartphone or computer and internet access to transact. 

Many regions around the globe still lack banking services but have internet and smartphones, facilitating the rapid Bitcoin adoption by businesses and individuals. The ease of using Bitcoin and its decentralization promotes accessibility to capital, enabling unbanked populations to become part of the global financial infrastructure. 

Economic Opportunities 
Bitcoin also offers vast economic opportunities, allowing people to improve their living standards. Bitcoin is among the most lucrative asset classes, traded alongside traditional instruments such as gold. That is a potential earning opportunity for asset traders, asset managers, and investors. Leading crypto exchanges such as Yuan Pay Group have intuitive trading apps with binary trading options that even beginner traders can pursue to start earning. 

If you have strong computational skills, you can also make money by mining Bitcoin. The process involves solving complex mathematical puzzles to validate transactions and mint new Bitcoin tokens. Businesses and individual Bitcoin users can also make money by lending tokens to other users. Those opportunities reduce unemployment and promote access to financial resources. 

Low-Cost and Faster Money Transfers 
Conventional banking systems usually rely on third parties to process international money transfers. As a result, the transfers bear huge transactional fees and also take several days to process. The transaction costs are even higher and take longer when sending vast sums of money across international borders. That has constrained many individuals and businesses from accessing adequate capital for daily needs and investments. 

Bitcoin transactions do not involve any intermediaries; instead, they occur exclusively on the blockchain. That significantly reduces the costs and duration of transaction processing. Bitcoin transactions usually take minutes to process and cost much less than ordinary bank or credit card transfers. Bitcoin allows you to send or receive funds to convert to different currencies, including USD, Pound, and others. 

Bitcoin is the world’s largest cryptocurrency in terms of market cap, with rapidly growing mainstream adoption. Although it continues to face intense competition from fiat money and other digital currencies, Bitcoin will undoubtedly be vital to the future development of the global economy. The above article is just a sneak peek into part of its more tremendous potential. 

In this article