Published 1 year ago • 3 minute read

Can Bitcoin Benefit the Poor?

Are you wondering if Bitcoin can benefit the poor? This digital asset can easily aid the poor in developing countries. 

Since Bitcoin's inception in 2009 by Satoshi Nakamoto, the idea of digital currencies and blockchain technology has impacted the world. This digital asset has a high practical value outside the market, and it has slowly started to move the traditional financial systems. Moreover, there are enough reasons to believe that this virtual asset will benefit the poor. 

Low Transaction Fees

Unlike the traditional financial institutions that charge clients substantial transaction fees, Bitcoin has a blockchain technology that reduces transaction fees for customers. Bitcoin users do not require third parties to monitor the exchange process with blockchain technology. 

On the other hand, exchanging fiat currencies requires a third party. As a result, the transaction time increases together with the transaction fees. This digital asset transaction eliminates third parties; hence transaction fees are minimal, and the transaction process is fast. People with no bank accounts can easily transact with this electronic money as long as they have digital wallets. Therefore, people in developing countries can own properties without financial burdens.  

Better Transparency

This digital asset nurtures transparency and accountability in every transaction. This digital asset is a monetary investment that allows people to own it transparently. This digital money has a blockchain technology that provides a public ledger with a record of all transactions, promoting accountability. If anyone wants to prove that their property ownership is legit, they can provide forms of their Bitcoin transactions in the public ledger. As a result, they can fight corruption in their own country. 

Unrestricted Capital Flow

Most underdeveloped countries implement laws and regulations to restrict capital movement in and out of their geographical borders. The developing countries can also block transactions to and from some countries. As a result, businesses and individuals must go through the traditional systems such as banks to send and receive money. In the end, most citizens in these countries lack sufficient capital access. 

On the other hand, this virtual currency is decentralized; therefore, such restrictions can't affect it, enabling citizens from developing economies to access capital quickly. No central entity can influence this digital asset supply. Besides, Bitcoin users d banks or money processors to send and receive money because this digital asset runs on a peer-to-peer network that only links the two parties involved in a transaction. 

Additionally, this digital asset enables businesses and individuals to avoid government restrictions and institutional influences in transactions. The decentralization of this digital asset facilitates the quick transfer of funds worldwide hence driving the flow of capital to the poor. 

Improved Financial Inclusion

Many people in developing economies can't access quality education. Therefore, the unemployment rates are high leading to poor living standards. As a result, most of them can't access and utilize financial services, thus increasing poverty levels. What's more, financial institutions in developing countries mostly favor the rich and powerful only.

Accessing and using this electronic asset does not require a lot of technical skills. One only needs a smartphone and some internet connection to buy and transact this digital asset. Smartphones and mobile internet are readily available in many developing countries. Individuals in those countries have essential primary and secondary education to help them complete Bitcoin transactions efficiently. 

This digital asset makes it easier for poor people to access financial services and transact with the rest of the world. Aside from cross-border remittances, Bitcoin also enables the marginalized to trade and invest in exchanges such as bitcoin code, encouraging financial inclusion. 

The Bottom Line

All the above factors significantly indicate how this digital asset can help the poor in one way or another. Also, Bitcoin is the future currency for everyone because it creates a level playing field for everyone. 



The views, opinions and positions expressed in this article are those of the author alone and do not necessarily represent those of or any company or individual affiliated with We do not guarantee the accuracy, completeness or validity of any statements made within this article. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author. Any liability with regards to infringement of intellectual property rights also remains with them.


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