When people think about a bitcoin investment vehicle, they think about a way to make money. This makes sense as people invest in things in order to build their own financial wealth. However, that takes away from what bitcoin is actually all about, which is the greater social good.
The Bitcoin Investment Vehicle and Social Good
Few people realize that it is actually quite a luxury to be able to have a bank account. There are numerous countries in Africa, Asia, and South America where very few people have bank accounts. Indeed, some countries have a 50% to 90% unbanked population. These people have the same rights as those in America and Europe, which means they should be allowed to own a bank account. However, many of those countries have rules and regulations in place that are so strict that the majority of citizens will simply not be able to ever open a bank account.
Bitcoin aims to resolve this by focusing on two things. First of all, because it is a decentralized and unregulated type of currency, anyone who has an internet connection is able to open an account. Secondly, it Focuses on the fact that the world is becoming increasingly cashless. Very few people still carry cash on them, purchasing they’re items online and using credit and debit cards to purchase things offline. Indeed, it is now even possible to make mobile payments at most merchants, which means card transactions are now being threatened. Bitcoin has been mobile for years.
Bitcoin uses what is known as blockchain technology, which is quite complex to understand. That complexity is what made a lot of people shy away from cryptocurrencies. However, because the technology is now properly established, most people can simply join it with ease.
Bitcoin is capable of a lot of different things, which is precisely what makes it so interesting. Some of those things include:
- It can take on what is known as the ‘remittance market’, which describes how funds are transferred between two people. It is highly superior in this compared to all other types of currency transfer institutions.
- It is capable of sending money from every corner in the world in a few seconds without charging administration and currency exchange fees.
- It can be exchanged into fiat currency, which means people all over the world can use their country’s own money as well.
- It stops the need for people to have a physical bank account, which is one of the things that makes bitcoin as powerful as it is. Essentially, it ensures those millions of unbanked individuals are suddenly able to have access to money – and therefore gain spending power.
However, what is required is internet access. That said, because bitcoin was developed for the greater social good, it is now even possible through certain services to access bitcoin using text messages. Again, this means that those who are unbanked and who don’t have internet access are able to access financial services as well.