Topic: Is Bitcoin an option for low- and middle-income countries [Fees & Costs] (Read 317 times)

The world is gradually moving into digital assets as a means of transaction, which Bitcoin is stand a better chance of sending fund's any country of your choice, base on the business going on with a less charge fees. Because using a traditional way of sending money, the charge fees is high and also west of time involved, But Bitcoin transaction, less than some minutes transaction is done successful. Therefore Bitcoin is created in option of low charge fees.

Both of them.

Most of low and middle income countries have low literacy, so when they see the title "Bitcoin can be hacked", "Bitcoin is scam", "Someone lost $$$ in Bitcoin", "Bitcoin drop 10% in a day" etc, they will automatically believe it without read the whole article.

Even though they're familiar with digital fiat or mobile banking where their money are in digital form, they still don't trust Bitcoin because it's not officially regulated, not promoted and not widely accepted in their country.

My bet is that most of the adoption might be driven by such countries, in fact, they can use other layers such as lightning or liquid

Doing the paperwork, waiting for approvals, showing proof of your income, exposing everything that you own, and then waiting for the transaction to be done. If everything is all right then the transaction will go through and if there's anything wrong, could be a tiny bit of wrong information or mistake can lead to so many problems.

And there are still fees and costs that need to be dealt with. I don't know how much other countries cost but where I live, it is very high. If you want to avoid everything and keep it simple, The Savior Bitcoin is here. No middleman involved, no personal data exposed, no hassle and fast transaction with less fee. So I think Bitcoin will be the best choice for cross border transaction for low and middle income countries.

1. I think usage of banks is not directly or strongly correlated to the economic status. Not considering the unbanked I will assume both high, low and middle income countries use banks to the same extent.

2. I can flip that to show that those is low/middle income countries do not engage in international transactions often and if they do. they find themselves on the receiving end of the transaction where they do not worry about the remittance cost.

- Jay -

Safe as in it can be easily lost / forgotten / compromised, or safe as in "not very volatile" ?


The only issue I see with this is that remittance costs are decided and applied by companies & governments, so they can easily be manipulated if they see that they lose from Bitcoin in market share.


I am glad to hear that. I don't know if Bitcoin is an asset with a complete package. What I do know, is that it's not governed by anyone. And this must be very well appreciated. There are flaws in Bitcoin, but personally I believe it is the best technological invention I have ever witnessed, alongside the Internet.

Bitcoin's potential to lower remittance costs, especially in low and middle income nations, is quite relevant. The number shows that traditional remittances are expensive. Now is the time for Bitcoin to shine. Bitcoin revolutionizes remittances with its minimal transaction fees and borderlessness. Bitcoin allows continent-wide money transfers with low fees! Plus, it's faster than traditional banking. Efficiency, accessibility, and cost savings are all important.

Unpredictability and the need to connect to the internet are, of course, problems. But when you compare these to the high fees and slow speed of old ways of sending money, Bitcoin starts to look like a superhero in the world of money transfers.

don't keep looking for conversion fees because not all trades need to convert to fiat because others are also using their received bitcoin to pay online transactions or to remain holding.
some are also converting to other altcoins to use for gambling or what they wanted to to, but if you are sending bitcoin overseas and they need to convert to fiat then better to send fiat instead with that 6-8% sending fees.

When we think of remittances we should not only think on the cost of sending a transaction, but also on the costs of converting fiat to bitcoin and then doing the opposite, as this increases the costs those sending that money have to pay, since there are still not many places where you can use your bitcoin directly to buy what you want or ways to earn bitcoin directly, however in countries where the local currency is trash I could see bitcoin being used for this purpose since it would be better to receive bitcoin than such currency.

I think that's how it is. Because bitcoin does have a very good system which is very suitable for countries with lower middle income. Because as we know, Bitcoin has a decentralized system, and also low sending costs. So it is natural that Bitcoin is widely used or adopted by low and middle income countries. Because as the OP explained, transaction costs between countries, if you use a bank, tend to be quite expensive. Therefore, bitcoin emerged as an alternative way to send money at relatively low costs.

Apart from that, bitcoin also provides a very promising investment opportunity and can also be done with not too large capital. For this reason, people in countries with low incomes will definitely be very enthusiastic about Bitcoin. Because they can invest, but they can use the costs they can afford. Maybe because of this, Bitcoin is widely popular or adopted in countries with low/middle incomes.

For me personally, bitcoin is very helpful. Because as I said above, Bitcoin provides a very promising investment tool and it could be said that it does not look at economic class. Because if you look at other investment assets, it is clear that you are required to have very large capital. So of course those who can reach it are people who have very high incomes. Therefore, bitcoin is very helpful for me personally.

And cheap shipping costs too, are a special feature for bitcoin. Therefore, bitcoin is indeed an asset with a complete package.

I am also  sending Money overseas and yes I was Using bitcoin now though sometimes having troubles with High fees so we need to wait some time before sending or also using some altcoin in those case .
but what you've said is correct mate because there are so much discount I am getting in those transactions this helps me minimize my expenses as I really need those amount to save for my Holdings and also for my family.

I don't know how much the fee in sending fiat now because have not been doing since 4 years ago , but the last that i remember is I am paying 10% each time I send so since then I leave the fiat sending .

and also the availability because it is not happening around the world, there are other countries that banned Bitcoin so there is no reason for us to use this as transacting materials.

Of course Bitcoin is cheaper than banks when it comes to cross border transactions, but not all people think Bitcoin is safe.

If we only talk about fees and costs, I'd say it's better to use stablecoins that run in centralized chains e.g. BSC. The cost to send for using BSC is only $0.05, other chains might be cheaper. After that it's their choice to convert their money to fiat, hold it or any coins they trust.

The drawback there might be a drama of freeze funds and privacy concern.

So this is the main point, we are free from taxes 😅. In those years, there were no regulations regarding cryptocurrency tax. In fact, it was only recently that everything related to crypto in my country was taxed. Until now, 70 percent of my income is paid in Bitcoin. Only 30 percent of my income is paid in fiat currency. This is progress for Bitcoin, apart from being a safe haven asset, Bitcoin has the potential to be a means of paying salaries or any kind of payment.

Apart from that, countries in the world are increasingly accepting Bitcoin and even legalizing it, setting tax regulations and some are openly developing Bitcoin/Cryptocurrency based projects.

I'm really happy to know that a cooperate organisation will accept to pay workers in Bitcoin even though it is a remote job. This is in-line with the reason for the creation of Bitcoin itself. For a country like mine where there is no tax on Bitcoin, it will be a major deal for you because you will be taking your complete money home without paying tax, I know it might not sound nice to some patriots, but then, anything that can add more money to our pocket is a plus to us provided it does not contravene the law.

Bitcoin has actually made life easy by offering a whole new dimension to cross borders payment

That should be a good stats and yes this could be a big help for remittance sending family ,
 but we must also consider that there is not only bitcoin that has been used now mate, others prefer using altcoins
as it has lower fees and faster transacting , specially times like this now that the congestion taking place , fees
are going higher and slower .but indeed that Bitcoin is a big help in middle and lower income countries .

Many ways to do cross-border payments, transactions and it's not only Bitcoin can do this. Bitcoin is unique because of more important things: decentralized, censorship resistance that you can not find in other methods like banks, visa, altcoin blockchains, CBDCs.

Bitcoin does not provide cheapest transaction fee or fastest confirmation time or average block time. It provides more important thing for users, its blockchain is irreversible because of very high and strong hash rate, decentralized. It's impossible to attack Bitcoin network and cost is bigger than benefit from attack.

How many Bitcoin confirmations is enough?
https://howmanyconfs.com/

Bitcoin is indeed suitable for cross-border payment designs. Apart from low transaction fees, Bitcoin is also fast in just minutes.

I've been using Bitcoin since 2013 to send money across countries, and I get paid in Bitcoin too because the company I work for is in Brazil while I'm in Indonesia. If you use some kind of wire/western union, bank, PayPal, it will cost a lot of transaction fees and can take days, of course this is not effective. Since there is Bitcoin or crypto, things like cross-border payments are very helpful, Bitcoin/crypto is the solution.

Yes, Bitcoin has been one of the greatest solution to the high cost of remittance fees. But obviously when the network is full and clogged, the fees also increases. This time, the highest was likely $8-$10 IIRC. But still compared it to the usual transaction fees we do in remittance centers, they're still kind of low. Anyway, the fees will drop down eventually when the network is empty again and there are lesser to no more demand for the ordinals. And if we're going to talk about if Bitcoin has been useful to us, in general, it definitely is and without a doubt that it has helped our lives more than the typical asset that we've got personally.

Without a dought yes, bitcoin transfer is more efficient than using remittance now a days, even not bitcoin, online transfer is a trend now why? Because its much faster and safe also lost fees, but why many people still use remittance is because they lack knowledge or hesitant about online transfer, and as we know not all people are knowledgeable about bitcoin or crypto currency so they don't know the advantage of using crypto currency transfer and of course not in all occasions that cryptocurrency transfer is applicable. So in short its more advantageous to use online transfer now a days and there a lot of platform for that, in every country they have a popular online transfer, and for use crypto currency transfer is more efficient, but in some occasions only. Still we can't force others to transition and use online transferring like what they used, because it hard to know things that is new to them.

Sounds like a good choice for a country to have open mind.


Ok, but I see Bitcoin as a new payments standard and not as an investment. Of course I appreciate the market going up, but I hope to see Bitcoin becoming a huge payments network.