The middle class comprises people and households that rank between the upper and lower socioeconomic ladder classes. The main traits that define middle-class individuals include better education, paying bills on time, job security, health coverage, and homeownership. They can also afford college education for their kids and retirement and vacations. They are active consumers with a higher spending power, which makes them the correct targets for bitcoin. Here’s how bitcoin benefits middle-class users.
Unrestricted Movement of Money
Since middle-class users typically have jobs, health coverage and frequently pay bills, they usually move money internationally. However, doing so has not been very easy because fiat currencies issued by governments and central banks are subject to political influences. They not only take longer durations but are also very expensive.
Bitcoin is decentralized, which means no government or political entity can influence its supply or movement worldwide. As a result, middle-class users can now conveniently pay their bills and transfer money for activities like education, investments, vacations, and healthcare abroad without the inconveniences impacted by government regulations and political bureaucracies.
Bitcoin’s peer-to-peer focus ensures the free exchange of money between users worldwide without the approval of any external authority.
Eliminates Costly Transaction Fees
Although middle-class individuals have higher spending power, they are also keen on the costs of doing business. Some are pretty sensitive to prices, always looking for ways to cut costs. And that is where bitcoin comes in. As a digital currency, bitcoin transactions rely on blockchain technology instead of third parties. That removes the risk premium usually incurred in traditional commerce.
Bitcoin users are not subject to the various transaction fees levied by financial institutions, such as deposit and withdrawal charges, account maintenance fees, and overdraft fees. While there are standard fees for wire transfers, the transaction fees for bitcoin users are relatively lower than those levied on traditional bank transfers. That enables the middle-class users to acquire wealth and shop internationally affordably. It encourages spending with the promise of better value for money.
More Security and Accountability in Financial Transactions
While people have used fiat currencies for centuries, their most significant loophole is the security and accountability of those transactions. In most cases, banks and other traditional financial institutions use intermediaries to ensure transparency but do not solve the accountability and security challenges.
Bitcoin benefits middle-class users by ensuring more secure and transparent transactions. The underlying blockchain technology creates a publicly accepted digital ledger for all transactions.
High-value Investment
The bitcoin price has continued to grow over the past months and, cryptocurrency market analysts predict a similar trend in the future. That makes it a lucrative financial asset for investment-sensitive middle-class users. Bitcoin holdings are financial reserves that the middle class as savings for kids’ education, family vacations, and holidays and retirement.
Apart from acquiring bitcoin holdings, middle-class users can also buy and sell bitcoin for profits. Today, there are numerous online platforms like yuanpay group website that users can sign up with for free to learn and conduct bitcoin trading conveniently.
User Discretion and Autonomy
Like cash-only purchases, bitcoin transactions are discreet and not linked to the personal identities of the users. The system generates anonymous addresses unique to each transaction, which ensures the user activities are untraceable. Cryptocurrencies, in general, offer more autonomy, allowing the users total control over their money and spending without dealing with third-party authorities like banks and governments.
Overall, bitcoin benefits middle-class users in many ways. It ensures flexible and discreet money exchange, less-costly transactions, and better security and accountability in financial transactions. Despite the volatility of bitcoin, it is also a lucrative investment instrument.
