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How Bitcoin can help with income inequality | The Guardian Nigeria News

Are you wondering how Bitcoin can help with income inequality? Here is a guide on how Bitcoin can help income inequality.

Many global economies suffer from financial inequality, which is a great challenge. However, Satoshi Nakamoto created this virtual asset to bridge the global wealth gap. On the other hand, income inequality has become persistent, with many people in the lower and middle classes unable to own Bitcoin dollars. 

Nevertheless, numerous researchers and financial experts have researched the potential of this virtual money to end wealth inequality. Some people believe that Bitcoin is the future of cash that will streamline global economic differences. Below is how this virtual currency will help with income inequality.

Transparent Transactions

The traditional financial system has many intermediaries. When making a transaction, it goes through a few go-betweens before it gets to the recipient. However, this electronic money eliminates intermediaries using blockchain technology to verify and validate transactions instead of intermediaries. 

A public ledger that no entity can alter records Bitcoin transactions, making it difficult for anyone to interfere with them. On top of that, the blockchain ensures that transactions are transparent in most financial transactions. In the end, transparency encourages investments and discourages fraud and corruption. 

Decentralization

Traditional financial systems are entirely centralized, whereby the government regulates all transactions. Also, the government uses its central banks to limit all financial transactions. Nonetheless, it is risky for the public to put some trust in their wealth in a single entity. 

On the other hand, Bitcoin is entirely decentralized, meaning that the government cannot regulate its operations. The supply of this electronic currency relies on blockchain technology which nobody can alter. 

Traditional transactions require the interference of a third party when completing cross-border transactions. On the other hand, these virtual currency transactions do not require go-betweens since people can send money directly as long as there is a strong internet connection. 

The lack of intermediaries and government regulations makes Bitcoin transactions fast and less costly. Along with that, Bitcoin enables even the unbanked population to be involved in the economy, promoting financial inclusion. Consequently, everyone has an equal chance of accessing funds through reliable platforms like Immediate Edge and using the right tools to help better trading.

Increased Innovation

After the 2008 financial crisis, Nakamoto saw it fit to create this virtual money so it could close the global wealth gap. As a result, he made a decentralized currency that no single entity, including banks, could regulate. Since then, this virtual money has inspired numerous innovations unavailable earlier. For instance, there was the creation of exchange platforms that facilitated the buying and selling of this virtual money. These exchanges include, and what’s more, they allow Bitcoin traders to exchange this currency for other cryptocurrencies. Additionally, crypto exchange availability has helped businesses accept these digital money payments. 

Bitcoin is not only a medium of exchange but also a perfect store of value that many investors take advantage of significantly. So, people who do not prefer trading this virtual money can invest through Bitcoin mining, lending, or staking. Bitcoin lending mainly means people lend their currencies to companies or individuals for interest. Lending is a perfect way of maximizing one’s Bitcoin profits. 

Another way that people can maximize their Bitcoin investments is through affiliate marketing. Therefore, this digital money has inspired a lot of innovations, with several products and services built around it. Moreover, this virtual currency has inspired a lot of innovations which has led to the end of income inequality. 

Final Thoughts

Generally, this virtual currency may not end wealth inequality on its own. Nonetheless, it offers excellent and numerous opportunities for growth and expansion.



Traciwininger
Author: Traciwininger

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