Understanding the viability of Bitcoin is not an easy task for people who are less technically inclined than most of the Bitcoin community. However, when people share their success stories about how Bitcoin changed their life or affected them in a positive manner, things become a lot more clear all of a sudden. Sending money around the world has never been cheaper than by using Bitcoin for remittance purposes.
Remittance Is Important But Expensive
Regardless of how people want to look at things,sending money around the world is a daunting and expensive task. Not only is it not always something people can do from the comfort of their own home, but the associated fees are downright outrageously expensive.
Remittance plays a big role in certain markets around the world, especially developing regions such as The Philippines and India. However, sending money to and from those regions is subject to some of the highest fees in the world. Luckily for all parties involved, there is a more than viable alternative in the form of Bitcoin.
Instead of going outside to a Western Union or post office, sending the funds in cash, and paying a hefty fee as sender, people can own send funds anywhere in the world at little to no cost. Plus, for the recipient, they won’t have to travel around through public transport or on foot to collect funds either. In the end, everybody wins when using Bitcoin, except the established remittance solutions.
Keeping in mind how the average remittance cost for a US$200 transfer to the Philippines is as high as 6% when using Bitcoin, traditional means are even more expensive. Especially where smaller amounts are concerned, fees become higher than normal. Once a maximum “limit” of fees is reached, the effect becomes less obvious.
Granted, Bitcoin will not completely replace the remittance sector anytime soon, as these companies have been ingrained into our society for so many years. Slowly but surely, people are starting to realize the system they know is far too expensive to maintain at current rates. Remittance is a billion dollar industry all year long, and if Bitcoin makes an impact in this area, a bright future lies ahead for the digital currency.
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