Here's another example. Look, they even left in the Quora disclaimer at the bottom, lol:
Yes, it is possible and likely to alleviate poverty through Bitcoin. (It’s not going to cure poverty!)
In fact, the UN has been looking into using cryptocurrencies to help distribute funds. They have implemented a trial on Ethereum already.
Often many funds that are distributed to the poor are far less efficient than we realize. Nonprofits and particularly, government organizations have a lot of bureaucracy and costs associated with implementing programs that help the poor. This drastically reduces the funds directed to the poor.
The poor actually spends a lot of money on financial services in proportion to their income. There are several inefficiencies in the market that can be addressed to help the poor. Currently, the price of the cheapest Android smartphone is $3 so it’s actually possible to have every poor person use Bitcoin. (Yes it actually works, I’ve tried it myself in person!)
Remittance can be up to a 10% regressive “tax” on the poor. This is most obvious with the Philippines and Bitcoin remittance startups are gaining traction. Currently, I can send Bitcoin without loss of value at 1/100 of the price to my mother in Hong Kong compared to MoneyGram or Western Union, much faster than international wire in 10 minutes or less. (I’ve already tried it personally, and you’re welcome to test it)
Check-cashing for the underbanked is about $40,000 in a person’s lifetime in the US. (See business model for RiteCheck etc). Bank of America hates poor people and has a $3,000 minimum for checking. The underbanked exist in rich and poor countries. These underbanked people can easily get access to an alternative option, which drives innovation from old incumbents, with new startups leading the way.
High transaction fees on the poor are also another problem that poor people get “taxed” on. Don’t have spare cash anymore? Although this may seem strange to most US folk, accepting payments through a QR code is quite common in China, even for the homeless.
Being able to connect to property ownership and identity verification methods on smart contracts can reduce poverty by allowing access to credit and lower legal costs to serve underutilized human capital. Bitbond is one of those services that give small business owners access to Bitcoin loans to further their business. There are warehouse financing options in Bitcoin only that are for underbanked businesses in poor countries as well. Having access to loans critical for business allows these businesses to hire more people and getting capital where it is needed and deserved.
Not to mention, based on the transparency index, about 85% of people in the world are living under extreme corruption. Often, corrupt governments have much more poor people. Bitcoin and connecting infrastructure on blockchain can reduce the cost of trust, allowing business to be facilitated without government confiscation. For example, a poor person in Zimbabwe will have corrupt officials take away their merchandise because they lack a business license, but the business license itself is out of reach for anyone but the very wealthy! Having options forces corrupt governments to improve access.
Bitcoin in its current form still needs more scaling before it can be used by the masses, it’s currently not there yet. However, from its track record, recent updates on Segwit and Lightning Network have provably reduced transaction fees for Bitcoin on several magnitudes. It now costs about $0.2 from what was $10 several months ago for any size transaction. It can be reduced even further in exponential terms, based on more second and third layer scaling and new infrastructure in place that will give VISA a run for its money.
It’s grown so fast, ex CEO of Paypal is trying to run a smear campaign to keep the status quo, while public companies like Square that are in the runner-up market share are already incorporating it in their payment processing app to embrace the future.
Disclaimer:
Disclaimer: My content does not represent the views of any associated institution. As described in Quora Terms of Service under “Legal, Medical & Other Professional Contributors”, Professional Contributors should be not be relied on as a substitute for advice from a professional that is appropriate for your specific situation. I post content regarding legal, medical, investment and taxation for information purposes only, not for providing professional advice to any user. I make no representations, guarantees, or warranties as to the accuracy, currency, completeness, or suitability of the information provided. I specifically disclaim any and all liability for any claims or damages that may result from providing information, including any websites maintained by third parties and linked to or from my content. Do not rely, contact a suitable licensed professional for advice.
Source:
https://qr.ae/pKZ5rz