Why Bitcoin is the best way of sending remittances to developing countries
Bitcoin is undoubtedly an attractive option for sending remittances overseas. Using this virtual currency to send funds overseas enables users to avoid the high costs of money transfer companies and traditional banks.
People around the world send money to their loved ones abroad regularly. The World Bank estimated remittances to hit the $550 billion mark that year. Despite the decline in overseas transfers due to the COVID-19 pandemic, they proved their resilience by increasing to $540 billion in 2020.
Bitcoin has emerged as the most attractive method for sending remittances to developing countries. Perhaps, that’s because of the rising Bitcoin adoption in developing countries like Brazil, Colombia, Kenya, Nigeria, India, Peru, and Mexico. The citizens of these countries consider Bitcoin a favorable alternate option for sending money.
Many people in these countries also use platforms like the Profit Builder app to trade this virtual currency and earn extra income. Such platforms enable users to buy the cryptocurrency using fiat money after registering. Perhaps, you can visit the profit builder for more details. Nevertheless, these platforms make trading Bitcoin possible and easier for people in developing countries.
Why People Use Bitcoin to Send Remittances
Bitcoin’s demand and supply are increasing every day. That’s why its prices vary from one crypto exchange to another. However, most people believe that this cryptocurrency will eventually become a global exchange medium.
What’s more, acquiring Bitcoin is a straightforward process. As long as you own a smartphone and can access a stable internet connection, you can purchase Bitcoin on a digital crypto exchange. And you don’t incur unnecessary expenses when buying or using Bitcoin. Additionally, you can send Bitcoins to your loved ones anytime, anywhere.
Bitcoin also protects investors from the rising inflation in their countries. For instance, Venezuela is facing economic challenges, including high inflation rates. Argentina is also facing a similar economic issue. Consequently, fiat currency in such countries keeps losing value.
On the other hand, Bitcoin provides an efficient way for the citizens of these countries living abroad to send their loved ones funds without incurring hefty transaction fees. What’s more, the Bitcoins they send to their loved ones do not suffer the inflationary effects of their conventional financial systems.
The Increasing Bitcoin Adoption
It’s no secret that Bitcoin adoption is increasing rapidly, especially in developing countries. This virtual currency has many promises and potentials over fiat currency. Also, people love Bitcoin because no central authority, like a government, can regulate it. Today, several merchants and stores accept Bitcoin payments. Several companies have also invested in Bitcoin or the technology behind it.
All these factors hint at a bright future for this virtual currency. Consequently, most people living in foreign countries have confidence in this digital currency. And because Bitcoin transactions are relatively cheaper and faster, more people prefer it for sending remittances over traditional money.
Currently, the world has blockchain startups that facilitate cryptocurrency remittances. And these establishments provide all the information Bitcoin users need to know before using it to send remittances.
Many governments are grappling with Bitcoin’s reality and the best ways to regulate it. However, many people, especially those in developing countries, prefer this technology for sending remittances back home. Ideally, people who send remittances more often have been looking for technological advancements to streamline the process. And Bitcoin has presented the most anticipated development. Therefore, people in developing countries and their loved ones living abroad use this technology to move funds quickly and at reasonable prices. Also, some people in these states are using crypto exchanges to trade Bitcoin and earn an extra income.