The value of Bitcoin fluctuates very often. Recently, bitcoin has been going through a surge period, increasing the value of Bitcoin quite dramatically. Now, it is no longer the individual markets that are profiting from the growth of Bitcoin. The global market has taken part in the growth of bitcoin and it is being adopted by countries all over the globe.
However, whether Bitcoin can have an impact on the economic growth of developing countries is still being studied by economists. The general population in these developing nations have not taken much interest in these cryptocurrencies.
This is not the case for just Bitcoins, but cryptocurrencies in general. However, the recent trend has shown some use bad exposure of cryptocurrencies in various countries with developing economies. Since Bitcoin in itself is one of the most popular cryptocurrencies around the world, its reach is much higher than any other digital currency.
Why is Bitcoin not as popular in developing countries?
It has been generally not that Bitcoin and other digital currencies have a bigger client base in March developed countries like Canada and the USA. The main reason why Bitcoin is not trusted by investors and general people in third world countries is because of its volatile nature.
Since it generally fails to hold its value for a long time it is not considered a viable currency at all. In comparison to fiat currencies that are much stronger and less volatile, Bitcoin fails to impress people. Because of this Bitcoin can never be considered as a primary currency in developing Nations.
For countries that are fighting over resources, a stable currency is of much more significance than something that loses its value so easily. Hence Bitcoin is easier to accept for people in a developed country in comparison to those in a developing economy.
The potential for growth using Bitcoin
The use of cryptocurrencies like Bitcoin can unleash huge potentials in third world countries. The reason why developing Nations and their economies have suffered in comparison to developed countries is because of the volatile nature of their currencies. Since they are easily influenced by changes in the market, Nations enter a state of inflation easily.
However, if cryptocurrencies like Bitcoin are to be adopted by these countries as the primary currency, they will not have to worry about inflation within their economy. Since Bitcoin is part and parcel of the global economy it changes value depending on subsequent changes in the global economy. Hence it is not likely to be impacted by local changes in the economy. Once consumers have confidence in the currency and are willing to spend money the economy of the country is bound to grow.
Challenges faced by Bitcoin in developing nations
Third world countries are riddled with poverty and various life-threatening conditions. At such a juncture, investing in Bitcoin is seen as a lavish commodity that can only be offered by the privileged part of society.
Undoubtedly the major fragment of the population who belong to the rural areas or are suffering from grave poverty simply do not have exposure to Bitcoin or any other cryptocurrency. Even reaching for a computer is an alien concept for many people in developing countries.
At the same time, Bitcoin requires a high functioning cloud computing system which is not a regular part of people’s lives in third world countries. Accessibility and scalability hence come in the way of people investing in Bitcoin.
There is no denying that cryptocurrency and the use of Bitcoin can help developing Nations into the path of becoming and building a robust economy. If you are interested in delving into the world of cryptocurrency check out bitcoin-up.live.