One of the main objectives of cryptocurrency advocates is financial inclusion. A recent CNBC poll found that 24% of Hispanics, 18% of Blacks, and 13% of white Americans now own cryptocurrencies. Even more impressively, the study found that 37% of the underbanked now have some form of cryptocurrency.
Because these communities have traditionally had limited access to traditional financial institutions, many turn to alternative providers. While some of these new users are not necessarily rich or well-educated, the potential is huge.
As the cryptocurrency industry continues to gain traction, more cities and states are promoting their local cryptocurrency-related businesses. Some have set up government-sponsored tax incentives to attract cryptocurrency mining companies. Some mayors (NYC, Miami) are even taking their pay in the form of Bitcoin or Ethereum.
Others are touting competitive tax rates and low energy costs as incentives.
The point is, cryptocurrency is transforming the way we do business. In fact, it will soon be used to reshape everything from delivering goods to paying bills.
A blockchain-based system will help make international payments much more efficient and faster. This will save money and time. Currently, international payments through banking channels require several intermediaries and cost a significant amount of money.
According to the World Bank, the average transaction fee on global payments is about 7%. By eliminating all of these middlemen, lengthy procedures, and unnecessary time delays, the blockchain will streamline the international payment process.
While many people are familiar with Bitcoin, there are several other cryptocurrencies that have been around for more than a decade. The Bitcoin market has gained immense popularity, but there are many other uses for cryptocurrencies. These new digital currencies can solve many of the problems that currently exist in our current financial system. As the world grows more digitized, it will be increasingly important to understand how they can solve the challenges of tomorrow.
Jay Speakman is a technology writer based in San Francisco, California. He writes on the topics of blockchain, cryptocurrency, DeFi and other disruptive technologies. Clients include Avalanche, Be[in]Crypto, Trust Machines and several blogs devoted to blockchain gaming. He will not rest until fiat currency is defeated.