What hopes does Bitcoin hold for the dollar poor? This article explains how Bitcoin will help the poor, freeing them from dollar dependency.
Poverty has always been a sad reality in every society. While its intensity and presentation may differ from one community to another, the truth is that poverty causes some people to lack access to opportunities and basic needs like others. It also causes dependency, where the poor who lack have to depend on those that have, the rich, the government, or others.
Despite years of attempts to solve poverty, there has been no effective solution. Even with government social welfare programs and poverty eradication programs, the problem persists. And this begs the question – what could be the problem? And in answering that question, we should also ask, what could be the solution?
Bitcoin
A mysterious entity named Satoshi Nakamoto came up with Bitcoin in the wake of the 2008/9 financial crisis. Bitcoin was for providing an alternative to the existing centralized economic system. According to Satoshi, Bitcoin would result in a financial network free of centralized control.
Bitcoin is a decentralized currency that uses blockchain technology. Unlike the centralized dollar, no government or institution controls Bitcoin. Moreover, Bitcoin is digital money that can be stored in a digital wallet, not in a bank account or held in cash. These features of Bitcoin are vital to helping the dollar poor, as it will become clear shortly.
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Bitcoin and Financial Inclusion
Bitcoin has great potential to help the dollar poor by expanding financial services to them. The dollar system excludes most poor people financially. They cannot access financial services for many reasons, including very trivial ones. For example, many dollar poor cannot open a bank account because of being unemployed or uneducated.
Financial inclusion is essential for helping the dollar poor get out of poverty. If these people can access financial services like credit, they can free themselves from their poor conditions. Access to credit can be a much-needed trigger for economic empowerment and emancipation.
Since Bitcoin allows anyone to have a Bitcoin wallet and access financial services, it provides relief to the dollar poor. They can access credit and start small businesses. The businesses can grow and pull them out of poverty. The effect can be even more significant as those who have already succeeded in getting out of poverty can help others get out, too, through employment.
Bitcoin and Emancipation from Dollar-Dependency
Bitcoin also holds great promise for the dollar poor by providing an alternative to the dollar economy. As explained earlier, Bitcoin is different from the dollar. No central authority like the government controls it. As such, the minting, distribution, use, and value are free from government control.
For the poor, Bitcoin means they don’t have to suffer from the dollar’s devaluation by the government and other forces. When the government mints more dollars, its value plummets. For the dollar poor, the impact can be far much devastating. Since they don’t have access to havens like venture capital investments and hedge funds like their wealthy counterparts, they are even poorer.
But with Bitcoin, the government cannot decide how many coins or when to mint them. The value of Bitcoin is relatively safer and projected to continue growing. So, by holding Bitcoin instead of the dollar, the dollar poor don’t have to suffer currency devaluation. If anything, the value of their Bitcoin will keep increasing.
Take Away
Bitcoin democratizes finances and frees the poor from depending on the government-controlled dollar. It gives the poor an alternative where they can be free and economically empowered.
