That is an impression editorial by Ray Youssef, CEO of Paxful and cofounder of the CONSTRUCTED WITH Bitcoin Foundation.
Global wealth inequality keeps growing all over the world. With inflation, conflict and the pandemic forcing many into extreme poverty, the very best 1% are accumulating more power than previously capturing nearly 20 times more global wealth compared to the bottom 50%. And the rise of inflation is adding more fuel to the fire, with U.S. numbers rising to 9.1%. While we all have been feeling its effects, many say low income households are feeling it probably the most, with tight budgets getting hit by the rise of rent, gas and overall living costs. While bitcoin isn’t a silver bullet, its a solid solution for minimizing the wealth gap and opening the entranceway to financial inclusion where fiat has failed.
Global remittances are perhaps one of the most vital resources of income for the emerging markets, but few money transfer companies exist that adhere to local regulations. This forces people into using companies that charge higher fees and puts less overall in to the pockets of individuals who require it most. Bitcoin fixes this, providing an improved alternative to just how people send money with lower fees, faster speed and access for the unbanked. In El Salvador, where bitcoin is legal tender, it’s estimated that money providers will eventually lose $400 million per year in commissions for remittances. People all over the world utilize the Bitcoin network to send money abroad in peer-to-peer fashion, no more spending third-party fees to send money to family. Take Angela Cunha, for instance, a Paxful user in Brazil. Angela moves bitcoin to and from her family in the U.S.sufficient reason for bitcoin, she actually is in a position to transact quickly and steer clear of expensive remittance fees.
The role of wealth in politics in addition has become a significant issue, because the powerful few control most of the decisions that affect our financial well-being. For instance, whenever a country decides to devalue or demonetize a currency, as weve observed in countries like China, Venezuela and Zimbabwe, this may put a whole population into poverty within weeks or days. Devaluing a nations currency not merely hurts the citizens of the united states, but includes a ripple effect around the world, causing markets to fall or forcing many right into a recession. For individuals suffering from hyperinflation, bitcoin functions as a store of value. With only 21 million bitcoin that may ever be mined, this is a strong alternative for all those searching for wealth preservation.
Narrowing in on Africa, income inequality is widespread over the continent. Recent reports show that over fifty percent of the worlds most unequal countries come in sub-Saharan Africa. Driving the wealth gap are three main areas education, finance and land which many lack usage of. Thats why were focused on increasing education on the continent through campus tours, events and the opening of the PaxNaija educational center in Nigeria. Weve seen from our focus on the bottom that Africans are entrepreneurial, smart and resourceful with the proper tools, they are able to adapt to whatever is thrown their way.
If you need to help have more people out of poverty, they want usage of sound money and theres nothing sounder in my own mind than bitcoin. Even though many still concentrate on bitcoin as a speculative asset, especially through the recent drop in cost, its important we remain centered on bitcoins real day-to-day use cases. Bitcoin can offer financial freedom and become a way to obtain chance for those seeking a means from centralized systems and corrupt governments. To attain financial equality, most of us need to begin looking at bitcoin by way of a new lens. That is just the start my friends we have been only scratching the top sufficient reason for bitcoin, its my belief that regardless of the current outlook, another decade provides sustained change for the higher.
It is a guest post by Ray Youssef. Opinions expressed are entirely their very own and don’t necessarily reflect those of BTC Inc. or Bitcoin Magazine.