Topic: Bitcoin as an opportunity for the unbanked. - page 3. (Read 498 times)

Nah Nah, I would say Bitcoin is the destruction for the Banks, I know I'm going in the wrong way in concerns to the topic. This is another side of your topic as Banks were introduced to provide all sorts of financial services and bring transparency but they did the Complete opposite to it, Bitcoin and DeFi brought those services within the reach of a civilian which he can even dream at least in my region. A loan is a big deal, Even opening a bank account is a big deal. I visited 4 times bank to prove my source only haha just a formality and I can't even count the many Bitcoin wallets I have (Kidding I can count there are a few only) but hope you got the point.

⚫ Global Accesibility.
⚫ Lower Cost.
⚫ Faster Responses (Transections).
⚫ Self Custody.
⚫ Actual Privacy & Security.

These are a few basic superiorities of the BTC BTC and Defi on the edge of Banks. Bitcoin is defiantly the most recognized future revolution and we are hopeful.

Keeping money at home will protect against thieves from the banking sector, but will not protect in any way from ordinary thieves roaming other people's houses.

Inflation devours money lying at home in the same way as it does in a bank account. The only difference is that the houses do not accrue (albeit small) interest on deposits.

This is how the banking industry works. If you don't like the rules of the game, just don't play.

First, it sounds like propaganda. It is more repulsive than attractive. Those who are interested in bitcoin don't need it, and it will not work for those who are not interested.
Secondly, it is not so easy to be your own bank and ensure the safety of your funds. This must be learned and not everyone can master it (especially at first).
Thirdly, it’s worth trying, but first, you need to figure out what and how to do.

Indeed, the traditional banking system has its shortcomings. It's like a tight rope dance where we balance between the convenience of banking and the drawbacks of hidden charges, low interest, and perceived unconsented lending. However, Bitcoin as a solution might be too hasty a conclusion. The animated excitement around it is understandable, but let's hold our horses and don our skeptical glasses for a moment.

Bitcoin's transaction fees have been soaring, which makes it less than ideal for small transactions. While it is touted as a democratic system, remember that it consumes considerable energy, indirectly contributing to climate change. Further, its volatility can be a deal-breaker for people looking for stable investments. Yes, Bitcoin does offer control over your money, but it also shifts the onus of security entirely onto you, which may not suit everyone.

Before investing, be informed about its pros and cons. Don't just dive in headfirst; tread carefully, even if it's with "a little money"

You have spoken well but from some of your points I understand that most people who always save money at home are even the people who puts themselves into much risk of losing their money.

Whenever money is being stored at home there are chances and possibilities that one could get robbed or misused those funds stored at home, that was why banking system was introduced although when there was no bank that was the oldling days of savings money but with technology and inventions they had the banking system where people stored and entrust their savings in the hands of bankers.

But at some point we began to lose interest due to some uncertainties where people do not longer trust bank with their money, but there's another thing we need to know about bitcoin it's very hard for bankers to trust bitcoin although there are people who are into it and bitcoin is a digital asset there are people who don't have that strength and energy to go run internet bank.

From some point i do term bitcoin as Internet banking because for a transaction to occur one must need internet to start the whole process and not everyone who has the capability and ability to operate on internet to stay monitoring their their assets, I know and have this belief that it is a gradual process where everyone would became used to it and start operating it swiftly

Keeping money at home is wrong, if you are doing this it's only a matter of time before you get robbed, robbers don't hunt homes anymore because they believe that everyone now uses the Banks to keep their money but if anyone knows you are doing this you can get robbed, not even now that everything seem harder than past years, it's a bad practice.

Bank charges are very high than using bitcoin to pay like you said but we still need Fiat to run things, the problem is Bitcoin is not acceptable worldwide, you can't use Bitcoin to purchase most things that human needs daily, in the end you need to convert Bitcoin back to Fiat and that Fiat will land inside your Bank account, and if you keep doing this your Bank will sit charge you monthly for the service they provide to you.

So can we really escape from the Banks?

Bitcoin transaction fee is not like fee in bank transfer which will have different fee tiers with bank transfer values. Banks charg you more when your bank transfer has higher value.

Bitcoin transaction fee is different and only depends on transaction size and fee rate. With same input, output, address type you will have same transaction size. With same fee rate, two transactions will have same transaction fee even they move either $100 or $1000 bitcoin equivalent.

I agree with you that fee for bank transfer and Bitcoin transaction are always big problems for small value transfer or transaction.

So true, those that are aware of the global news and events. This is one to be worried about. Like those people in Lebanon that they're not even allowed to withdraw their money on the banks there as per the instruction on them because they might be out of money too soon. While looking at the situation of the people there because I've just watched a video of someone who forcefully took her money from the bank where it is deposited, she had to scare them out.

Well, this is the business model of the banks. That's like their bloodline and how they're able to survive with this business. Once you have deposited your money on them, that's already the consent from the depositors.

All that you've said are true. But we can't force people to like Bitcoin, they'll voluntary like it soon when they see the value of it goes up again and once we're back in the bull run. With all of those technicalities and everything, they wouldn't mind about it but only about its worth and value.

I've heard that many times but I'm not so sure. For starters, if the fees are high, I don't think it would be convenient for unbanked people to make day-to-day payments with Bitcoin, besides they won't be able to do it in many places and the LN is impractical if not relying on third party wallets. The unbanked do not have enough to save much, they live from day to day and for little savings I think Bitcoin is the same as a bit of gold.


But we are talking about unbanked. How much savings can the average unbanked have? $1K? I don't even think so, depending on the country. With amounts like that, I don't think there is much risk of being robbed and if someone does it because they know they have savings, it doesn't matter if they have Bitcoin, gold or cash, the most important thing is that no one knows about it.

Bitcoin is bitcoin, and over time we will find and associate its features and limitations with life. It's not too easy for me to judge when it comes to investing in savings accounts or with bitcoin, because in different asset portfolio positions we don't just compare the good of one to the limitations of the other. Totally agree that bitcoin is gaining more and more investor confidence, but the volatility and the expectation of long-term stability over time I don't think will happen, nor do we need to complicate the situation. It doesn't matter how to pay or use it, as long as it benefits your decision then you should do it.

If they are fearful of banks and decide to move to Bitcoin, it is a first good step but it is not enough.

If they open their accounts at centralized exchanges and store their coins in such accounts, they will face with risk like with banks or even bigger risk. Because regulations on cryptocurrency centralized exchanges are easier than on banks. So risk with centralized exchange will be bigger.

If they do this, stay with banks is safer.

Reminder.
If they choose Bitcoin, they must use non custodial wallets.

You don't need a bank or government permission to use bitcoin, but if you don't have a bank account and your country bans bitcoin, how will you use bitcoin? I wonder how can someone without a bank account own bitcoins, are you using banks and centralized exchanges to buy bitcoins? Bitcoin is decentralized, but our world is centralized, and the government runs everything. If they don't accept it, you will use bitcoin in fear, isn't that called freedom?

What fraud is experienced when using a bank, if you are not using their credit facilities? Technically, you shouldn't be scammed by a reliable bank. I don't condone the use of them, though I don't think they are blatant obvious scammers (until they collapse lol)


Unless you get paid directly in Bitcoin, or cash, then you are going to face taxation. There's no way to avoid that, until the system is changed. If you mean inflation is taxation, I suppose that's a fair way of putting it since inflation does stem from central banks and money creation.


Bitcoin is not the answer just yet, though it does present an opportunity to operate partially outside of the financial system. It's still difficult to be 100% bitcoin, unless you are already well funded.

We admit that the presence of Bitcoin with its system that facilitates transaction matters can be a solution for those who do not have a bank account.
There was one prominent member of the forum posting outlining how Bitcoin saved a lot of unbanked people but I don't know what the topic title was or where it was created.

In this context, I agree with you that not all of the countries in the world have adopted Bitcoin like El Salvador.
Counting the advantages and disadvantages, the position still has many advantages even though for shopping you have to exchange it to fiat. The rest can be used as investment assets with the aim of maintaining its value.
Many people want it to be like El Salvador, but it's conflicted with various regulations and other factors.

BTC is permissionless and so anyone can use it, but it is still a second choice currency and you cannot live on only it. To spend your BTC you need to convert it to fiat and receive it through your bank account. Op your theory is only possible if there is mass adoption and you can spend BTC on anything at all. Transaction fees on the network is not even cheap these days, but that's another story!

I know people can be unbanked for different reasons, but as far as i know, a large percentage of the unbanked in any society are people who are poor, don't have a job or do not have any money to keep in a bank, if that is the case BTC cannot help this category of people who are just looking for what to eat and make ends meet.

Bitcoin doesn’t need a country acceptance before the user can use it since it’s a decentralized asset which means no centralized party like bank needed to make a transaction from a person to another. You can spend and receive Bitcoin anytime from other user as long as you have an internet connection.

Bitcoin is being use on early days without the acceptance of government on it. They can only regulate Bitcoin through the centralized exchange but they can’t regulate Bitcoin directly.

I think bitcoin can help the unbanked only if their country accepts bitcoin and people can spend and receive bitcoin wherever they want.

That's a naive thinking, if most people leave their money in their home, the criminals rate will increase really high since they know where you leave your money. Using this reason and saying become your own bank with Bitcoin isn't make sense, you're leaving your private key and your hardware wallet in your house too. Even the criminals didn't find it, they can just pointing their gun in your head and you will tell it honestly since you think your life is more important than money.

But it's not mean I want to say better to leave your coins on a centralized exchange, you need to find a way to hide your private key in a thing that no one expect.

If you keep money (fiat) in your house, you can easily spend it, you will only noticed you spend it very fast. If you do not spend it, someone can know and invite thieves to steal your money. If thieves do not steal the money, the banks are still robbing you by decreasing the value of your money during inflation in a way that what you can use it to buy today, you can no more use it to buy the same amount of thing next year.

See what that happened in the El Salvador, that IMF and US government did not like. Bitcoin is now available to the unbank people in El Salvador and their economy has not collapsed but life made easier for the El Salvadorans.

But one problem is bitcoin can not help the unbank people in countries that do not adopt bitcoin like El Salvador and also in countries that prefer to spend fiat. Most people prefer to spend fiat and use bitcoin for investment.

Another thing is that people that know how bitcoin works will have bank account because bitcoin is not for illiterates but for people that are literates and able operate phones and computers.

In the world today, many people prefer to keep their money in their house save because of the perceived fraud by our traditional banking system that has decided to rip the populace off their hard-earned money without remorse, through different unexplainable charges, this has changed the mindset of the un-banked because of the complaints coming from the individuals involved in that process, this individual, both the ones that are already banked and the unbanked are looking for alternative other alternative means that they will use to safeguard their wealth.

Financial institutions put up these outrageous charges and unacceptable taxing methods and lend individual money to other people without their consent and unknowingly to them, in return give them interest below what is expected yearly, taking back the interest through taxation and so making their money always depreciate in their bank account.

I want to categorically tell this set of people that Bitcoin is the way forward for you, bitcoin works for everyone, and the system was designed in a way that every interested person can participate.
Bitcoin allows you to be your bank and be in charge of your money with no interference from anyone. Participation is dependent on your interest, not your identity, that's to say that everyone can be involved without their identity known. Note that blockchain technology guarantees your Bitcoin security, so don't be afraid just give it a trial but with a little money I believe you won't regret it.