Income disparity and economic inequalities between people have remained pertinent questions in the financial arena for a long time now. Despite the efforts made by the countries, both at national and international levels, economic inequality continues to remain a vital part of our reality. Even the developed countries have not been able to eradicate income disparities and ensure economic equality among their population. As the world progresses through globalisation, this disparity only seems to increase, further widening the gap between the rich and the poor.
Ever since cryptocurrencies came into existence, one of the causes of their popularity was the ease with which it facilitates international transactions. Many believe that cryptocurrencies can play a very significant role in removing the economic inequalities that plague almost all countries of the world. Bitcoin, the leading cryptocurrency in the market, can be instrumental in this regard. With the ease of access and security that it provides, along with its transnational nature, bitcoins can help in creating a fairer and more equal global economic setup.
How does bitcoin help in removing the income disparity?
The most significant feature of bitcoin that makes it instrumental in reducing the inequalities in the economies of the world is that it transcends all geopolitical boundaries and is truly global in spirit. Like most other digital currencies, bitcoin is not tied down to any specific nation and can be used in all countries. It has the potential to solve the crisis of income disparity in both developed and developing countries. It is also capable of increasing economic opportunities available to citizens in underdeveloped countries. This happens in two main ways. The two most relevant functions of bitcoin, when looked at from the economic point of view, are that
- it creates a kind of banking system which is easily accessible to people from all sections of society, and
- it promotes international trade by making cross country transactions hassle-free.
Banks of the unbanked
Banks are the primary financial institutions through which individual citizens execute their transactions. However, about 2 billion people in the world do not have access to banks, and therefore, do not have access to the facilities they offer. This is mostly the case in underdeveloped and developing countries, where the banking system fails to reach out to the masses due to a lack of infrastructure. The lack of financial literacy among the citizens in these countries further promotes this. People who are unable to go through with bank paperwork and are not aware of how the bank functions cannot be expected to have active accounts.
Bitcoin solves this crisis as it allows its users to access through apps like the blockchain technology via smartphones. With technology advancing rapidly, smartphones have now become easily accessible to a large section of the population, even in underdeveloped countries. Thus accessing bitcoin can become easier than accessing banks. Moreover, bitcoin does not involve any complicated paperwork, making it easier to use. Therefore, for the “unbanked” masses, bitcoin transaction platforms can serve as banks.
Portal to Global Economy
For erasing the prevalent economic differences, the differences between income generation opportunities have to be removed first. However, people living in underdeveloped regions do not have equal access to income opportunities. This problem can easily be solved by bitcoin as it transcends all national and regional boundaries, making it possible for anyone to participate in global trading. Small businessmen can expand their businesses in the international market easily by making use of bitcoin.
The online broker provides a range of services from trade in all major cardano crypto price pairs of currencies to market analysis and investing in other areas like precious metals. As a pioneer in the field, this company is constantly at the forefront of developments and research efforts with a strong desire to stay ahead of the curve and stay ahead of competitors.
Although most countries have been striving to eradicate economic inequalities for decades, this goal has been a rather difficult one to achieve. Instead, with economic crises striking one after the other, the disparities only seem to have increased. The potential capacities of bitcoin in this regard seem promising. Hopefully, with time, bitcoin will indeed succeed in securing economic equality.