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<p>We hear the term “<a href="https://www.investopedia.com/terms/t/third-world.asp" rel="noopener noreferrer nofollow">Third World countries</a>” in the news more often than not. Contrary to popular opinion, this term was initially coined to identify nations that neither had an allegiance with NATO nor the East. In simpler terms, it was more about political alignment.</p><p>However, the definition has changed in recent times. These days, third-world countries are independent states struggling to attain certain aspects of development. While there are many metrics for development, this article will focus on human development, poverty, and Gross National income.</p><h2 id="header-0">Wealth-Related Challenges Facing Third World Countries</h2><p>So far, we have highlighted poetry, Gross National Income, and human development as the pointers of third-world countries. All these features are pointers to certain challenges. In this regard, solving these underlying problems will help to resolve those pointers listed above.</p><p>Before talking about solving these challenges, we first have to outline them. Doing so will give a clearer picture and help everyone understand how and why these issues inhibit development in such countries.</p><p>P.S.: We understand that governments and politics play a significant role in the development of every country. Furthermore, we acknowledge that there are certain areas that require institutional reforms. Nonetheless, there are still certain aspects of wealth creation that individual measures can make significant differences.</p><h3 id="very-low-income">Very Low Income</h3><p>This is as clear as water from springs. Most people often say that poverty is the obvious indicator of a third world country. However, having low-income levels is actually the root cause. It is almost impossible for people who live on very meager wages to grow.</p><p>Before anyone can grow, they need to be able to invest. To invest money, people must be able to save money, and they need significant wages to cover their spending. It is only after they have met their basic needs that people can think of saving for the future.</p><p>With wages barely enough to support their needs, it is almost impossible to save money. As a result, they are stuck at the same economic level for years.</p><h3 id="fewer-job-possibilities">Fewer Job Possibilities</h3><p>But why are the levels of income in third world countries very low? The reason is simple: there are very few job opportunities. As a result, the job market is over-saturated, and the ratio of people to open roles is very high.</p><p>With the supply of labor more than available work openings, there is bound to be a lesser valuation of labor. The basic law of demand and supply comes into play here.</p><p>This means that salaries will be much lower because most people will simply be happy to take up any job. With poor salaries, people are stuck with low income. Then, it all goes back to the first point.</p><h3 id="limited-fiscal-opportunities">Limited Fiscal Opportunities</h3><p>At this point, you are probably thinking of remote jobs from other countries as the solution. This is especially true for individuals who work in tech fields that allow employees to work from home. The problem with this approach is getting paid after taking up such job roles. In addition, people have to navigate the areas of taxation, time zone differences, etc.</p><p>Many companies in first and second-world countries often have specified payment channels. These channels are chosen in terms of accessibility and economics.</p><p>Establishments choose payment channels based on their location. Their choice will be based on the ease of payment as well as the cost of transfer fees. Considering these factors, many firms do not want to hire outside specific regions. It is easy to say that getting remote jobs from companies abroad is out of the question.</p><h3 id="inability-to-conduct-international-trades">Inability to Conduct International Trades</h3><p>Meanwhile, the transaction embargo affects companies in third world countries as much as it affects regular individuals. One way or the other, establishments need a connection with the outer world to survive. This rule applies to medium and large-scale enterprises, especially when their operations involve import and/or export.</p><p>However, various firms find it difficult to complete any form of international transactions. One of the reasons is the lack of an optimized and efficient trading medium. More often than not, central banks in such nations do not have the required liquidity to support imports.</p><p>As a result, establishments within these countries cannot manufacture enough products and services to export. With nothing to export, foreign reserves will not increase. Then, the cycle continues like that.</p><h2 id="header-1">How Cryptocurrency is Bringing Wealth to Third World Countries</h2><p>Looking at the illustration above, it is obvious how interconnected these problems are. In fact, it is more like a cycle of recurring issues than individual strings of challenges. In this regard, simply disrupting the cycle goes a very long way in solving the problem.</p><p>Here are some ways through which cryptocurrency can disrupt the cycle at various points and bring wealth to third world countries:</p><h3 id="lower-trading-barriers">Lower Trading Barriers</h3><p>The first means that cryptocurrency can breathe the cycle of underdevelopment is by providing these countries with a medium for conducting international transactions. These days, there are very <a href="https://coinmarketcap.com/alexandria/admin/article/bc18809e-efb4-4cb9-8cff-bdf949de770f" rel="noopener noreferrer nofollow">easy ways to make a Bitcoin payment</a>. As such, people do not need to have technical knowledge in order to do so.</p><p>Institutions can adopt these newer methods to enable them to trade with other companies abroad. These modern methods of cryptocurrency transfers are so seamless that some of them seem like paying with cash or regular bank transfers. There are also blockchains that charge zero gas fees on transactions, regardless of what part of the world the receiver is located.</p><h3 id="boosting-the-country-s-economy">Boosting the Country’s Economy</h3><p>The unease of conducting international transfers affects third world countries on a significant scale. With a medium of conducting international transactions, underdeveloped nations can open themselves up for development. Companies can now purchase raw materials existing outside their borders with ease and improve their operations.</p><p>With <a href="https://softnote.com/" rel="noopener noreferrer nofollow">zero transaction fees</a> and 1% merchant commission, these firms can significantly cut down the cost of operations. Cheaper operations and higher productivity mean more profit. In turn, this means better salaries for workers.</p><p>Meanwhile, the benefits are not limited to already-existing companies. With a lower trading barrier, more start-ups will emerge and create more jobs. This will increase the economic opportunities within the country.</p><h2 id="header-2">Conclusion</h2><p>It is amazing how a simple solution like a medium for completing international transactions can disrupt the cycle of underdevelopment. The potential of cryptocurrency on global transactions is undisputed. It is left to companies, the government, and individuals to adopt this <a href="https://tectum.io/future-of-payments/" rel="noopener noreferrer nofollow">payment solution</a>.</p>

How Cryptocurrency is Bringing Wealth to Third World Countries

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