People get blinded by seeing some of the crazy amounts of money that seemingly can be made by investing in Bitcoin. Though there is a good chance of making a tidy profit when you know what you’re doing, there is so much more to cryptocurrency than a get rich quick scheme.
The blockchain itself has a lot of benefits from securing data, to making supply chains run more efficiently to give just a couple of examples. It is also responsible for helping many people that have no access to banks enjoy the benefits of having access to savings and even investing.
Over a billion people don’t have the ability to open a bank account and until now have relied exclusively on cash. In this article, I will go over several of the ways that Bitcoin has helped tens of millions to gain access to the same opportunities as those with bank accounts get to enjoy.
What the unbanked miss out on
People that are not able to open bank accounts end up on a treadmill of constant poverty. It becomes very difficult to be able to grow if your finances are not able to take root.
When you have to pay cash for everything then you are not able to start a business since you would need a loan. You can’t invest to grow your savings and you pay a lot to have checks cashed that could be used to help you get out of a financial hole.
Many banks have no interest in addressing this problem, but the blockchain enables so much transparency that it can be relied on to do this.
How cryptocurrency bridges the gap
There are tens of millions of people in India alone that have no bank. But, they do have access to a smartphone. With this simple device, it becomes possible to use cryptocurrency to get out of poverty.
BTC price in India can grow quite a bit, so imagine if you are able to use an app on a phone and buy some bitcoin when you have some extra money. Then it grows and now you have more money than you started with. Without a bank account or credit card, this wouldn’t be possible. And with the app, you can store that value.
Now imagine if you want to start a small business. You can use your Bitcoin to get a small loan or use the profits from a trade to make that happen. Suddenly your savings are growing and can now get off of the treadmill.
Even if it is only used to make payments or purchases, the fees are a fraction of what it costs to make transfers and purchases happen right away instead of over the course of days.
When this happens, it doesn’t just benefit the person who can now grow their nest egg or invest, but it helps grow the economy as a whole. This is great news for emerging economies that needed a boost.