Cryptocurrencies And The World Poverty Problem

1 Feb 2023

For the past few decades, world governments and various organizations have been fighting to solve the issue of poverty. But instead of reducing, the poverty problem has been increasing. Many reasons have been given as the cause of the problem. These include; increasing world population, corrupt political governments, greedy institutions and individuals who restrict resources to just their circle of friends, limited access to funds for many innovative persons who may wish to set up a business and many other reasons.
About a decade ago, the world got introduced to a new form of financial asset called cryptocurrency powered by blockchain technology.

Why Does Cryptocurrency Matter?
With cryptocurrency and the ideology behind it, many of the so-called causes of poverty now seem solvable.
* Transparency in financial dealings are now easier to enforce with blockchain and cryptocurrency
* Decentralized means that the issue of just few entities controlling and restricting access to resources is reduced
* Low entry barrier and requirements for accessing cryptocurrencies means a lot more people can gain access to funds to start up and run their businesses
* Cryptocurrency has provided a very good vehicle for the distribution of wealth to people in every corner of the world, across international boundaries.

It is interesting to note that according to available statistics (Crypto Ownership Data), just a small percentage of the world population, about 4.2%, is currently adopting or using crypto. Yet, even with that small percentage we can already see the massive impact it is making worldwide. Wealth is being generated and distributed to a large number of persons and both world and national economies are being positively impacted.

Cryptocurrencies are still in a young and developing phase and a more solid framework still needs to be built and issues like scams and security still need to be worked on. However, despite these challenges, cryptocurrency is one of the most feasible options to use in the fight against poverty.

It should be noted, however that cryptocurrencies are not a single cure-all solution. Rather it needs to be used together with other poverty alleviation programs. Given the benefits of cryptocurrency and blockchains, as more governments, institutions and individuals adopt crypto, the world may likely see a significant reduction in world poverty.

Thanks for reading.

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