Topic: The major role of cryptocurrency in promoting financial inclusion. (Read 212 times)

ROI isn't an advantage but an evaluation that every business does for the meaning of ROI itself and it's not just only in bitcoin but in many businesses and even in investing.

But what you've said is right that they've seen that bitcoin is a good hedge against inflation and with all of these economic rumors about the potential global impact of a crisis that's about to come or it has already came. Thus, Bitcoin is the better choice.

Same thoughts regarding the reduction of costs since I think the volatility of the crypto could be a factor on how the company's profit would be. The profit could be lower than expected when the crypto price also falls so there is this kind of hesitation for some to rely on this ending up for them to still use a more consistently valued payment which is through fiat money. This would make them convert their daily profit to fiat so that it can be a stable value but doing so requires fees so the cost would not that really be reduced. Also, to answer the OP's main question, I think one of the function of it is financial inclusion but it has a lot of things to offer since it can help you have financial security, easy transactions, and also as a form of investment to be financially sound in the future.

I agree that there are potential benefits for businesses in adopting cryptocurrencies, particularly in terms of future returns and reducing payment sorting costs. However, it's important for businesses to also consider the risks and volatility associated with cryptocurrency markets. It's crucial to have a solid understanding of the technology and market dynamics before making any significant investments in cryptocurrencies.

The prospect of financial freedom is what cryptocurrency promotes. And when you talk about future return, I want to remind you that not every single person involved in cryptocurrency can have the future return. It is for those who play by the rule and strategies and you have to be really patient. 
Cryptocurrency also promotes the use of digital currency in a free platform where there is no governmental restriction.

I don't understand some of the stuff you are trying to say, OP. Did you use Google Translate?
Crypto prices are volatile not because cryptocurrencies are new, but because most cryptocurrencies are scarce.
You are coming up with the assumption that the crypto prices will keep going up forever. I don't know what will happen with the cryptocurrency world in the distant future and I'm not that optimistic.
I don't believe that adopting crypto payments would reduce the costs of the small businesses. At the end of the day, they will have to convert the crypto to fiat, which comes with it's own transaction fees.

as i know bitcoin main role is to promote financial freedom.
so about this i think freedom for everyone whether they want to invest in btc or not.

and in my opinion the presence of btc does not mean to fight fiat currency but rather the presence of bitcoin
will help the economy for people who are interested in investing in btc. because in my opinion btc and fiat money cannot be separated because after all we can buy bitcoin using only fiat money.
and we invest in bitcoin with the aim of getting a lot of money.

Realize or not cryptocurrencies are playing a major role in promoting financial inclusion by providing access to financial services to people who may not have had access before. This is particularly important in developing countries where traditional banking systems may not be accessible or reliable. By using cryptocurrencies, individuals and businesses can participate in financial transactions on a global scale with lower fees and faster processing times.

Cryptocurrencies also allow for greater control over personal finances and can serve as a hedge against inflation. if we look at it as a whole, cryptocurrency has the potential to empower individuals and communities to take control of their financial future and and it is a specific answer to how cryptocurrencies have promoted financial inclusion in non-banking communities as well as the potential benefits for further adoption towards the integration of cryptocurrencies into the financial system.

That's true in some cases but in other cases it could be the cause of huge losses. Some crypto-currencies that are trusted and have huge ecosystem can give good returns to long term investors, some of those valuable gems such as Bitcoin, Ethereum, Lite coin, Monero are highly valuable in this regard while on the other hand there are thousands of crypto-currencies that are not future proof and can be the cause of huge losses.


That statement is somewhat true as payments made with crypto-currencies are lightning fast as compare to other payment methods, but these days the mobile bank wallets are available in almost all countries and the transactions made with those wallets are much faster than crypto-currencies and they also provide secure and low fee payments. Small businesses can also be run with those digital wallets without any issue and costs will be almost same in both conditions.

The main feature that makes crypto-currencies unique is their decentralized mechanism, and those digital wallets lack that feature, but these days most crypto-currencies are traded on centralized exchanges which isn't the way of decentralization that Satoshi once thought of when he presented the Bitcoin whitepaper.

cause of volatility is not "crypto", its the international access and free market that shows the variance of international value/cost

reason for volatility is that actual VALUABLE crypto (those with real world cost of mining) have a wide range of underlying cost depending on region of the planet meaning someone in iceland can mine for $20k where as someone in hawaii can only mine for $120k meaning their acceptable rates differ meaning a wide amount of speculation window inbetween whereby people pick what price they are willing to sell down to or buy upto

its more about the international ability of access rather than "just crypto"

fiat commodity markets do this hidden thing.. however backwards to crypto

buying wheat from the UK/US to put onto the international commodities market has no 'profit' however buying wheat from slavic/asia regions and putting it onto the international commodities market has alot of profit.

they just have many fiat commodity 'circuit breaks' and mechanisms to stop the international markets from being volatile due to international variance.

this is called monopolising the price and manipulating the price to a fixed range. rather than a 'free market' of volatile prices that match individual countries true costs

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fiat commodities/shares/stocks also require participants to use agents/portfolio managers/traders to access shares who take cuts from the actual investor. and you can only buy whole unit shares/stocks

with bitcoin people can solo buy decimal amounts

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not all cryptos will "make you rich" nor worth what they are priced at. because 99.99% of cryptos have no underlying value/cost of creation. they are just ICO scams/premines/pos crap that costs nothing to make. thus their potential lacks many things of real currency and economic value. its just idiots scheming idiots to see who is left with the worthless bag

bitcoin has underlying cost value(PoW) and the way the halvings work this incentivises true deflation. and along with it comes the hash competition that helps push up the cost/value that supports the speculative price

In short, they work different ways because. That's why I really don't see any good comparison between Bitcoin and fiat, it doesn't mean they are just both can be used as payment methods for something it does not mean they already work the same.
So for me, I am against those people who are telling "Bitcoin will replace fiat currency" because I believe fiat currency will stay just like Bitcoin will stay.

the points you've raised regarding the advantages of businesses taking up cryptocurrencies.

Firstly, it's true that cryptocurrencies can offer the potential for high returns, as their market values can be volatile. However, it's important to note that this can also come with a significant level of risk. Cryptocurrencies are highly speculative and their values can fluctuate rapidly, which means that businesses should exercise caution when investing in them.

Moreover, while cryptocurrencies can potentially offer high returns, they are not guaranteed. The market can be unpredictable, and businesses need to be aware of the risks involved before investing in cryptocurrencies.

Secondly, it's true that cryptocurrencies can potentially reduce payment sorting costs for businesses. This is because cryptocurrencies enable direct peer-to-peer transactions without the need for intermediaries such as banks or payment processors. As a result, businesses can potentially save money on transaction fees and processing times.

However, it's important to note that cryptocurrencies also come with their own set of transaction costs, such as network fees and exchange fees. Additionally, businesses need to be aware of the potential risks involved in accepting cryptocurrencies as payment, such as the possibility of fraud or theft.

Thirdly, cryptocurrencies can potentially serve as an alternative asset class to cash, which can be subject to inflation. This is because cryptocurrencies are decentralized and not subject to government control or manipulation. As a result, they can potentially provide a hedge against inflation.

However, it's important to note that cryptocurrencies are not yet widely accepted as a means of payment, and their adoption is still in its early stages. Additionally, their volatility can make them a risky investment, and businesses need to carefully consider their investment strategies before investing in cryptocurrencies.

Finally, cryptocurrencies can potentially offer businesses greater control over their capital and provide opportunities for direct involvement in digital business. This is because cryptocurrencies can enable businesses to bypass traditional financial institutions and engage in peer-to-peer transactions directly with customers or partners.

However, businesses need to be aware of the risks involved in this approach, such as the potential for fraud or theft, and the need to maintain robust security measures to protect their digital assets.

In summary, while there are potential advantages to businesses taking up cryptocurrencies, they also come with significant risks. Businesses should carefully consider their investment strategies and take appropriate precautions to manage these risks

The risk with using Bitcoin in doing business though is that sometimes you might be forced to wait for a while before making use of your income. There will be times you cannot immediately roll your funds. There will be times your capital will have to stay put. You must be aware that volatility is generally not good for business. The price of Bitcoin could significantly fall within hours. And if you will have to convert your Bitcoin to fiat in your business operation, it's either you will do it with a loss or you will wait indefinitely for the recovery.

I believe the major role of Bitcoin is to promote liberation and financial opportunity that's the reason BTC was built on P2P architecture decentralized censorship resistance system.
If Bitcoin is not created with these liberation features which make the government powerless over BTC the government would have intervened and stopped the existence of BTC.

Cryptocurrency came into existence as a reason to fill the void that wasn't able by the fiat currency. The technology advancement is simply good, and if the inclusion is allowed all around surely the contribution to the upliftment of the economy can be experienced. As of now even the country's that supports bitcoin doesn't have much of users who does it connected with business or for some improvement. The majority prefer it for investment than a payment gateway. The core needs to change, but it is simply impossible to happen.

If we start to look into the major roles or functions of cryptocurrency  and compare it to fiat currency, this thread will full with similar reasons, but actually cryptocurrency and especially bitcoin is a support hand of fiat's currency, I cannot compare bitcoin with fiat's currency because without fiat currency bitcoin will not have been supportive. The only difference is the bitcoin doesn't have a thirds party during the investment, you can access your bitcoin at any point in time, all the necessary things that belong to bitcoin when you purchase or invest on it, is under your shoulders, while in investment for with fiat, or banking of fiat currency in someone's custody

I agreed on your fact that bitcoin transaction is not perfect for small amount businesses but it has most potential for large-scale businesses where you get thousands of dollars in payments. Bitcoin is also faster if you think about overseas payments, hassle-free and faster with low fees.

Also, you forget to mention for a small business where the payments are made in smaller amounts the transaction fee is also a matter, where in cash you can get the money with 0 fees.

I would say financial transaction freedom.  Financial freedom in a non-Bitcoin context might mean a different thing.  So I would be specific about it to avoid confusion.  With Bitcoin, anyone can move their funds freely.


Isn't financial inclusion is defined as access to economic financial trade or sector?  By using Bitcoin, the unbanked (people who don't have bank accounts or are rejected by banks for some reason) are able to participate in the economy thus, financial inclusion is made possible by using Bitcoin.  Bitcoin removes the barrier that excludes the unbanked from accessing or participating in the financial sector and using these services to improve their lives.
...see financial inclusion meaning by investopedia



Bitcon users regardless of their financial capability will benefit from the features of Bitcoin.  Bitcoin users regardless of status have access to all the services that accept Bitcoin as the mode of payment and can enjoy what these services offered. Thus, reason why Bitcoin not only promotes financial inclusion but enables financial inclusion to its users.

Yes everything about freedom of how you use your money is what bitcoin is about. It is for that exclusive right you have with whatever financial standing you have excluding others. No delay only if you provide yourself with network, no delay only you will use require transaction fees and you see your transaction successful waiting delivery for confirmation on the blockchain. The payment option of bitcoin is now getting adoption since it speed of deposit and withdrawal is faster than fiat. Example If you enter a store where bitcoin is use as payment , you don't need too much process of payment with cash but only wallet address and confirmation is there in blockchain viewing with hash, it is easy and fast.

Although return on investment is one of the advantages of bitcoin been used by businesses but the most important is the fact that it easier to transact with someone using a different currency without having to pass through the hurdles of the commercial banks. Also business owners have seen that bitcoin hedges against inflation so it is easier to have there funds stored as bitcoin to avoid inflation crises


This is only true if the cryptocurrency is only bitcoin. Alticoins are just risky pump and dump coins that aren’t save to been used as source of payments. Although some of these Alticoins can easily pump up profits but it is risky to have them as an investment because they are very volatile. The only

While this is true that most cryptos are in there as an asset and investment but if it's about these businesses and merchants then the first thing that they can think of is another payment method that they can adopt without being tied up with any third party.

Most of these businesses do know what it's up being tied with them and that sucks them a lot of fees per transaction. So, the best advantage that they can have is if they're paid with bitcoin, the payment goes directly into them without the intervention of any bank or any third party payment processor.

And all they need to do is to receive it as the transaction fee will be paid by the sender.

I don’t think I understood you here how does crypto-currency reduce payment cost for small business, let’s say I am a small scale business owner and I have a good going for $1 it would always remain $1 regardless of it you are making payments in Crypto-currency or in Fiat.

Yes I agree with you that bitcoin transactions can be fast, but small scale business mostly get paid in cash, so I believe that’s faster.

We need to understand this bitcoin is not the solution for all our problems, it give us freedom, right to privacy and anonymity but it won’t make a small scale business man start earning more from his Business only a good business plan can do that.

The major role of cryptocurrency, in my opinion, is the ability to create without being reliant on anyone. Create Internet transactions, small governments, communities, proposals for further innovation etc. It's a very alive organism itself.

It can also cause denationalization of money, which is a huge deal. There was no such currency before. Even gold was effectively under the state's control.

When you say future returns, it comes to mind that everyone can be able to face the market reality but no, only those with full confidence and patient can enjoy the high market return when they venture their business in bitcoin, not just any cryptocurrency.


You made a lot of comparison of digital asset and its simplified means of payment to Fiat currency. But generalising the term to just cryptocurrency makes it a thing of thought. All this can be achievable with bitcoin and not just any cryptocurrency.

True, even though cryptocurrencies in general really shouldn't be.

Yes, it could be arguably viable to compared bitcoin and stablecoins to fiat currency, but the entire cryptocurrency space? Not really. A huge majority of cryptocurrencies are just pseudo-shares of platforms. For some reason people are still with the 2017 narrative that every other cryptocurrency is trying to compete with Bitcoin.

I wouldn´t say that Bitcoin major role is to promote financial inclusion. That is a possibility.
However, the main role of Bitcoin is promote financial freedom.

Financial inclusion cannot be achieved by the bitcoinization of the society. Although many people became rich with bitcoin, it is very unlikely that those who are most needed will get any bitcoin at all in their lives.

However, middle class citizens are probably the ones who will be most benefited by bitcoin, specially those in countries where there is high inflation (such as Latin America, specially Argentina, and other countries like Turkey...) or those who live under authoritarian regimes.

The most notable advantages for businesses in taking up Cryptocurrency is the high likely future returns. Cryptocurrencies are new compared to Fiat currency, and so is their market values volatile. However, their volatility comes with prospective good gains. Another benefit is cryptocurrencies can be use to reduce payment sorting costs, giving room for small businesses to retain in their possession more of what they get and significantly increase in the rate how fast they get paid. Crypto may serve as another effective possibility of choice or making asset equal to cash, this might be lower over time due to inflation. It can further aid stronger control over the capital of such enterprise to cope with the risks and opportunities of direct involvment in digital Business.

Let's discuss