Cryptocurrency: The Key To The Unbanked
Cryptocurrency is key to the financial future for almost 2 billion people.
While most are focused upon Lambos and Bitcoin at $100,000 (or $1 million), there are billions who are overlooked.
According to the Worldbank, more than 1.7 billion lack access to basic financial services. They live in countries that are not catered to by the present financial system. This burden is doubled by the fact they live in impoverish countries with onerous regulations.
Ultimately, they are required to keep the cycle of poverty going.
Over the last couple decades, technological advancements got these people online. Today, nearly half those people have a smartphone meaning they are connected while being financially excluded.
Individuals in this situation have no credit history or documentation which to become a part of the financial world. Credit is basically cut off from them.
Cryptocurrency is a solution for this. Since it bypasses the existing financial system, it offers the opportunity to enter markets where banking does not exist.
At the same time, since it is in the digital world, access via a smartphone is all that is required.
This is a sweetspot for cryptocurrency that is not yet being accessed. We are seeing the infrastructure being built out which means that services will soon follow. Will those target these individuals? Time will tell but it is an opportunity.
A great deal of global growth will come from this segment. While it is difficult to 5x the medium income in a western country like the United States, this is much easier in one where the average daily income is under $2 per day. Cryptocurrency is the opportunity to offer that type of growth to those who are presently outcasts.
Over the next couple years, it is going to be vital for crypto projects to reach out to this segment of our global population. It is a market that is primed to utilize the services that are being developed.
We also have a responsibility to assist in pulling these people out of the extreme poverty they live in. By providing financial services, they can then use their own innovation and motivation to improve their local circumstances.
It is a market that is ripe for disruption since they are still stuck in an era that dates back thousands of years.