How Does Bitcoin Help to Solve the Problem of Income Inequality Global – LIFESTYLE BY PS icon

How Does Bitcoin Help to Solve the Problem of Income Inequality Globally?


A survey of problems faced across the globe has shown income equality to be a major one. It creates a vast disparity between the wealthy and the ones in the lower economic group. This extensive diversity is a reason for the nation's low economic growth. Income inequality as an issue and its vast increase have made people look for ways to counter it. It gets often wondered with the blockchain technology, and Bitcoin can be a perfect fit in this equation.

Digital currency is said to have the potential to bridge the wealth gap globally. Developing parts of the world have enjoyed a growing technology in blockchain exposure. Charity organisations have also used cryptocurrency to help individuals build and access loans without even opening bank accounts. People in these regions can use Bitcoins to convert them into cash and use the resources when needed. The digital world of currency has opened an arena of assets for those who cannot afford investments in the forms of gold or properties.

People have been turning more to online trading platforms than the traditional banking systems to invest in in the past decade. People with little or no experience can trade in virtual currency for profits; however, having good knowledge about Bitcoin and blockchain technology is crucial and can help one make the correct trading decisions. The Bitcoin and cryptocurrency industry does not guarantee an indefinite increase. Based on the rise and fall of Bitcoins, trading and investment decisions are crucial.

What is bitcoin?

A digital, electronic and virtual currency existing only on the internet is known as a cryptocurrency. Bitcoin is one of the leading cryptocurrencies in the world. It got created with the main aim of reducing global economic inequality. While the global economy faces pressure, experts have claimed that Bitcoin popularity can help against income inequality.

Bitcoin can help strengthen the middle class.

Functioning on a different and more transparent network, Bitcoin and blockchain technology is unique and different from corporate banks. Blockchain records all Bitcoin transactions and is an independent, encrypted and shared entry database. Experts believe that the world can use blockchain technology to deal with income inequalities. The rich want to be richer and therefore creating inflation leads to the flow of wealth to the top. Inflation explains why wealth inequality is continuous.  Bitcoin can solve this problem by enabling individuals to opt-out of the fiat system as asset owners too.

Bitcoin enhances financial literacy.

While encouraging asset ownership can fight income inequality in certain countries through this. However, there is a different plan for developing Nations. Bitcoin can reach users in places with even no banking systems. Access to this financial infrastructure is because all a person needs is a smartphone to transfer or receive cryptocurrency. Over 1.7 billion people do not have bank accounts, and such people can use Bitcoin to store transfers or receive value. Bitcoin can help in developing Nations that have inadequate banking facilities and support the people there.

Bitcoin gets rid of the middleman.

Bitcoin can also help eliminate the intermediate and the fraudulent, corrupt officials who deal in the money as third-party intervenors. Removing them from the loop can make the transactions transparent using blockchain technology and thus lead to less income inequality by letting the correct amount reach the person. The financial aid provided globally can go to the individual in need directly in this method too.

Conclusion

Income inequality is a slow poison that will never let everyone come on the same level of financial dependence. The inequality has to get countered. The digital currency world is trying to bridge this gap by making assets and investments easily accessible to all. The awareness about Bitcoins has inv=creased and has gained popularity in the past decades. However, to completely eradicate the issue, it has to be optimally utilised by all. To know more read bitcoin trading