Bitcoin is the first opportunity for most people to secure and manage wealth without external manipulation. El Salvador's decision to embrace Bitcoin as its legal tender has made it clear to many investors and individuals that Bitcoin could be the most effective way to improve financial inclusion. Although several regulatory institutions are still skeptical about Bitcoin's volatility, its increasing adoption shows the world's commitment to embracing digital currencies. Here's how Bitcoin enhances financial inclusion and access.
Trustless Transactions
Banks and money processors must use third parties or intermediaries to complete cross-border transactions in traditional financial systems. That means customers must prove their identities and convince service providers to transact. While it may seem like a better way to promote trust in financial transactions, involving intermediaries increases the fees and exposes customers to several risks, including fraud and data theft.
Bitcoin solves such loopholes with blockchain technology, eliminating all third parties from transactions. Bitcoin users do not need banks or money processors to send or receive money. The peer-to-peer network enables users to transact autonomously, without outside intervention. That means anyone on the web can send or receive funds in Bitcoin at their convenience.
Bitcoin is a decentralized digital currency, accessible to anyone via a smartphone, computer, and internet connection. Its underlying blockchain technology generates a public ledger with all the users' transaction histories. That significantly promotes transparency in Bitcoin transactions, making it imperative for users to observe the element of trust in all dealings.
No Need for Bank Accounts
One of the conditions for using ordinary banking services is that one must have a bank account. However, opening a bank account also requires access to banking services, which are not available among some populations. Over 2 billion people worldwide currently lack access to banking services, meaning they can't engage in meaningful business with the rest of the world.
Unlike the conventional financial sector, Bitcoin users do not need bank accounts or banking services to transact. Instead, one only requires a Bitcoin wallet and internet access. Crypto exchange platforms like Bitcoin Profit ™ - Official Website 【UPDATED December 2021】 provide free Bitcoin wallets that you can download and install on your smartphone to transact.
Bitcoin users can choose between a hot wallet or a cold wallet. A hot wallet is the most convenient option because it is online-based. A cold wallet is considered the most secure since it doesn't link to the internet. Nevertheless, obtaining a Bitcoin wallet is much easier and convenient than opening a bank account.
Unlimited Transaction Volumes
In traditional banking systems, the government and regulatory agencies usually control the number of transactions people can engage in locally and internationally. They are often very strict with international remittances, sometimes preventing people from sending or receiving money from some countries. That limits financial inclusion and hinders many people from accessing capital whenever they need it, impacting poverty and suffering.
Bitcoin does not restrict its users on the amount of Bitcoin they can transact. Neither does it limit whom you can transact with due to the absence of a central entity. Instead, Bitcoin offers maximum autonomy to its users, allowing you to send and receive funds at your convenience. Even if you want to trade or invest in Bitcoin, there is usually no limit to the volume of transactions. That encourages the free movement of capital worldwide, thus, enhancing financial access.
Bitcoin creates a more transparent and secure platform for those with bank accounts and the unbanked populations to engage in various transactions. It also ensures seamless, prompt, and low-cost cross-border transactions, significantly enhancing financial inclusion and access.
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