CryptoCurrency and Universal Basic Income — What’s the link?
Cryptocurrency and Universal Basic Income (UBI) — these two topics may seem highly unrelated and unlikely to be placed together. However, with the number of variations of cryptocurrencies in the market, let me assure you that they are. To discover this link, we must first understand what crypto and universal basic income are…
Cryptocurrencies are essentially just a form of virtual currency, but commonly powered by blockchain.
They prove to have various forms of utility depending on each coin or token.
UBI, also known as Basic Living Stipend or Basic Income Guarantee, is a type of program in which a country’s citizen can receive a regular sum of money from the government.
With this two concepts in mind, let us explore how they are associated.
With cryptocurrency having such varying use cases, it should not come as a surprise that it can enter the market to support the concept of UBI. Coming from Thailand, a still-developing country, it is apparent to me that not everyone receives the same privileges or accessibility to essential financial services;
In fact, around 2 billion people around the world remain unbanked.
This leaves these people (more often than not, also the poorer individuals) unable to borrow money from legitimate institutions or seek financial advice, then falling as prey to other dubious systems such as predatory loan sharks for loans.
So then, how does cryptocurrency come into the picture to help this current situation?
First, cryptocurrencies are truly international. Not restricted to different geographical locations in the world, cryptocurrencies can be traded internationally, across borders in the whole world. Next, there are low or even no transaction costs.
With blockchain, there is no middle party, no physical branches, and minimal staffing required to keep the system functional. This reduces the miscellaneous costs needed thus allowing for these cost savings to be in turn passed on to consumers.
Finally, being immutable and verifiable, blockchain combats the prevalent corruption practices in these countries as well.
That said, it does show that cryptocurrency can thus have an impact on alleviating poverty to a certain extent. Utilizing blockchain, banking companies are able to offer banking services and financing of micro loans at a cheaper rate which would allow people to expand their income stream. All at the same time promoting economic inclusion.
An example of an crypto project that promotes economic inclusion in modern societies would be Spiking. As all would know, earning from the stock market is extremely difficult. You need to have the time to research and analyse along with a tinge of luck to hit the jackpot and make it big.
Many of us do not have the time for that, and Spiking understands that.
Spiking seeks to redress this issue by allowing amateur traders to mirror transactions of big investors (whales), emulating their success in earning from the stock market!
In conclusion, cryptocurrency along with its development have seen tremendous progress and growth vertically and horizontally in its use cases. There is no surprise that cryptocurrency has also been used to issue pressing global issues such as sustainability issues, poverty and even corruption. Let us stay tuned and look forward for greater changes and updates to a wider and greater variety of industries!
References:
medium.com/@nickadamsjudge/a-cryptocurrency-can-begin-to-end-poverty-now
medium.com/the-mission/how-cryptocurrency-can-help-developing-countries
hackernoon.com/how-cryptocurrencies-can-reduce-global-poverty
scottsantens.com/manna-universal-basic-income-blockchain-cryptocurrency-decentralized-targeting
By Rawipa, Buyer
Drawing from its successful and rich experience in the stock market since 2016, Spiking is expanding to cryptocurrency trading! With its unique and powerful trading tool and its AI robot Robobull, Spiking enables traders to easily find whales and mirror the trades automatically. At Spiking, we strive to help traders make better decisions and take the steps toward fulfilling their dreams of achieving financial freedom. Check out Spiking App, Top Grossing Finance App at App Store & Google Play.
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