cryptocurrency

5 Ways Cryptocurrencies Helps Developing Countries

This article has been originally published in theripplecryptocurrency.com, to read the original click here.

Cryptocurrencies are changing the world in more ways than meet the eye. They have made transactions easier and safer, and the blockchain technology that allowed them to exist is now being used for more than just cryptocurrencies.

Among the most promising developments that have spawned from the cryptocurrency space are the ones that are taking effect in developing countries. Some people believe that cryptocurrencies have thus far functioned only as another game for wealthy investors. The truth is that many people in developing countries are now able to join global commerce in ways that they haven’t been able to before.

The biggest advantages that cryptocurrencies offer the developing world are increased access to money, the improved ability to send or receive it, greater access to ATMs and digital wallets, and a huge increase in transparency, which is sorely missing in many countries.

Cryptocurrencies are helping out developing countries in more ways than one.

1. Access to Banking

The World Bank estimates that over two billion people around the world lack access to banking services. There are several reasons for this, most of which center around poverty, but the end result is that these people are disconnected from global commerce. This is where cryptocurrency now shines…

There are many applications that allow you to open a cryptocurrency wallet and use it for banking purposes from your mobile device. Because mobile devices have proliferated in the developing world far faster than banking services, there is now a perfect opportunity for cryptocurrency to fill in a huge gap in international commerce. The end result is a higher level of inclusivity than would ever be found in traditional banking services.

2. Easy Transactions Over Mobile Devices

The accessible nature of cryptocurrencies allows you to easily complete transactions over your mobile device. It is now safer and easier to maintain a cryptocurrency wallet than it is to deal with banks and various financial institutions, which make international transactions difficult or costly.

3. Greater Transparency

Of all of the challenges holding developing countries back, corruption is one of the most persistent. Unnecessary bureaucracy and corrupt officials cause the ever-growing gap between the rich and the poor to persist, and even money that is set aside for the public interest simply goes missing on a regular basis.

The blockchain technology that enables cryptocurrencies to function comes with tools that make corruption impossible; or at the very least too visible to go unnoticed. The blockchain is an immutable ledger of all transactions. This means that every transaction is publicly recorded on a ledger and it can never be deleted.

This level of transparency makes unscrupulous activities difficult to get away with, while also allowing ordinary people to safely conduct transactions.

4. Greater Social Mobility

Despite the stereotype of cryptocurrencies being another game available only to the rich, cryptocurrencies offer a new solution to global income inequality.

One of the greatest setbacks to social mobility in the developing world is corruption, but as we have seen, that issue is tackled ferociously by cryptocurrencies and their blockchain technology.

Unlike traditional banking institutions, no physical presence at any specific location is required for crypto banking. Generally speaking, you just need an internet connection and a crypto wallet. Now some countries are seeing the rise of crypto ATMs, allowing any user to purchase, send or receive money from anywhere in the world.

Cryptocurrencies provide accessibility, transparency and clarity, three things that are often in short supply in many developing countries.

5. Easier Remittances

Every year, hundreds of billions of dollars in remittances are sent to developing countries. According to the World Bank, this figure stood at approximately $441 billion in 2016.

The remittance payment process has created a global industry that is seldom favourable to migrant workers and immigrants. Traditional remittance services such as Western Union collect fees and sometimes enact various different charges, making these transactions more expensive.

Cryptocurrencies have allowed remittance payments to be made in an easier and far more affordable way. Crypto transfers are conducted very easily, but not at the expense of safety. This is another factor that has made Bitcoin popular in developing countries. There have been new services emerging in developing countries, such as SureRemit from Nigeria, that are targeting the growing crypto remittance demand.

The Verdict

Cryptocurrencies have offered the world an alternative to the problems that come with traditional banking. These alternatives have extended to countries of all levels of economic development. It will be interesting to see how the world at large changes as a result of cryptocurrencies, but there is no doubt that they are also helping developing countries.

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cryptocurrency

Cryptocurrency – Why I need to know more about Bitcoin?

The subject of Cryptocurrency and block-chain technology appear more and more in our news papers. Nevertheless, it is one of the most misunderstood and controversial subjects for the majority of the people. In many people minds, The topic is attached to terms as “Black market”, “gambling” and “Speculations”. The truth is, that Block chain technology is the future. For every person that is searching to be updated in what’s happening in the world around him, it is time to understand better the subject and its applications.

It is true that in the last year the value of Bitcoin and other Cryptocoins has gone up and down and that many scams have been connected to its activities. This trend have been seen previously with new technologies reaching the market. As the internet of things allow easier and faster access to all in our new global era of investments, it is natural that the flunctation in early stage will be bigger. To start understanding a bit better the subject, here are a few important facts that you need to know:

  • Bitcoin is the first, most known and valuable Cryptocurrency in the market. With a total value of $169,452,298,312 (with a value per coin of $9,958.11 at the 5.5.2018)
  • At the moment the top 5 Currencies are – (from the top down) – Bitcoin, Ethereum, Bitcoin Cash, Ripple and Litecoin
  • Bitcoin is based on a technology called “Block-Chain”. Bitcoin is only the tip of the iceberg of this technology.
  • The Block chain Technology is an innovative system and a disruptive innovation which will enter into all the domains of our life and is going to change the way we operate the majority of our current systems.

In many conversation with professionals, Bitcoin and the Technology behind it the moment are compared to the Internet boom of the 90’s. For those of you that are to young to remember, When the internet have been introduced to the mass market in the 90, there was an hysteric moment of investment around it. Firms have emerged everywhere, creating a mania of investment and numerous amount of scam. The term “Dot-Com bubble” was a historic economic bubble and period of excessive speculation that occurred roughly from 1997 to 2001, a period of extreme growth in the usage and adaptation of the Internet. Nevertheless, following the crash and the end of the speculators the internet (which was in the time the new disruptive technology), has survive and became a tool we cannot live without.

Here is the Nastaq index of that period:

To understand how similar the Block chain technology is to this market, here is the chart of the price of Bitcoin in the last year: (Can you see the similarity)

It is important to notice that the value of bitcoin and any other Cryptocurrency is based on the amount of transaction made in the market. To make it simple, more people buy and sell or transfer it one to another the more value it gets. It is very similar to any currency in that manner. The crazy increase in the price of Bitcoin last winter is easy to explain. When the price start to go up and the awareness have picked, many people saw the opportunity to make profit and start buying, Creating a “Mania“. The values started to rise nothing to do with the actual technology behind it.
In the moment the value have served its investors, they started to sell their bitcoin out, which immediately made the price go down. At this moment, the majority of the people that were following the trend (without really understand why) saw the drop of price and start selling their bitcoin as well. In economic term it is called a “Panic”. at the low point of the panic in February the value of a bitcoin has been 7,023$, which was still higher than its value in November 2017 before the mania (5,976$). This is an important point.

I will publish a series of post in the subject to cover the subject and give you a better understanding of the subject in simple terms. For now it is important to hold in mind a few points:

  • Cryptocurrency is not so different from your Dollars or Euro,
  • These coins are reflecting the entrance of a new technology called “Block chain” into our lives.
  • This technology will affect governments, banks, insurance companies and working places.
  • Like many other disruptive innovation, the current market is trying to do everything in his power to block its entrance.
  • The price of the Cryptocurrencies will continue to go up in the long run.

Be Aware: The stage of development of Cryptocurrency and Block chain is far from being mainstream. It means, it is open to manipulation as people do not fully understand it. This post is not in any way giving a professional analytic overview for investment. Before investing in anything, please make sure you fully understand what are you investing in and how to do it.

Share with me you opinion in the subject. Awareness and open conversation are the key for the promotion of a better world.

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