Security and Education of Microfinancing in Developing Countries

[graylexstamit]

Blockachain has intergrated in our lives so tense, that now it’s used almost everywhere. While banks are thinking to implement blockachain into its structure, I’d like to know what about microfinancing? How secure is it, what are chances not to lose? What about microcredits and other stuff?

[Astvile]

Microfinancing is pretty secure its just like normal type of loaning to banks or other institutions.
Micro financing will surely help people in a developing country to cover up expenses for living,but this comes with a risk.Because the loans being offered here is for short term so for sure interest rate will be higher compared to a regular loan.Plus the thing that microfinancing or loaning is being offered to poor or unemployed they loan for a reason,they loan because they need it for a living,and when the time for payment comes most unemployed person will surely not be able to pay this off and the taxes will built up and the one who loaned it will be down to zero and to negative in terms of finance.Chances of lose will be higher for sure.

[gantez]

Microfinancing is just a smaller unit of the institutional banks, maybe they are majorly owed and managed by individuals. In other words, they are banks that are easily accessible by micro business people, thus, they are equally secured. They implore the techniques that institutional banks use which involves policing of the premises, the use of secret cameras etc. So , if the institutional banks decide to implore blockchain fully, I have no doubt that microfinance banks too will follow up. They are all banks, involves transactions with monies. Nobody wants their investment to disappear, so they will go along too to secure their data and finances.

[americanreamt]

Cryptocurrencies attract people thanks to the principles of openness and greater accessibility than classical stock investments. when microfinance projects created on the blockchain and platforms that provide bonuses for managing digital assets began to appear, people's interest is shifting towards cryptocurrencies, not banks

[roosbit]

Several projects such as sureremit(Nigeria) are already into the microfinance business and others are targeting these markets to bridge the gap banks have left, not just sure how much they have invested in the education side of this technology and microfinancing.

[bvyvjdidn]

Of course, the use of cryptocurrency can allow more people to hope for microcredit. But to be sure that profits will be made, more people need to be trained in the basics of cryptocurrency investing.

Cryptocurrencies can be a good way for short-term earnings. But I agree with you that the society needs greater access to the blockchain learning systems and financial operations with cryptocurrency. It is good that such educational projects as taklimakan began to work, where you can get knowledge of how well to use cryptocurrency, how things work in the world of the blockchain. It does not need to spend several months, as if such programs offered universities

In developing countries, the blockchain can really be a good helper. Getting a bank loan at those huge interest rates is not a pleasant prospect. But the asset management system built on blockchain technology will not only provide data protection, but also offer more favorable terms. Most often, such platforms take only commission for transactions, which is significantly lower than bank charges.
 

[leea-1334]

Microfinancing is pretty secure its just like normal type of loaning to banks or other institutions.
Micro financing will surely help people in a developing country to cover up expenses for living,but this comes with a risk.Because the loans being offered here is for short term so for sure interest rate will be higher compared to a regular loan.Plus the thing that microfinancing or loaning is being offered to poor or unemployed they loan for a reason,they loan because they need it for a living,and when the time for payment comes most unemployed person will surely not be able to pay this off and the taxes will built up and the one who loaned it will be down to zero and to negative in terms of finance.Chances of lose will be higher for sure.

Many different concepts of this but for me it is important to know what is micro in some countries is still big in many. For example in my country microloan is the equivalent of 1 month salary, but converted to US dollars,,, it is only about $200 (less actually).

Then you bring it to a poorer economy, say like in a new country where $200 is 6 months salary, it does not even mean micro anymore.

So this crypto micro economy works because of fractions, in my mind. You can loan 1 ETH or you can loan 0.0005 ETH, does not matter.

[cipherhut]

Blockchain is the underlying technology of Bitcoin, Along with the Bitcoin, Blockchain technology is also an invention itself that can be used for security purpose in different sectors, therefore, proper utilization of both as an individual asset is important

[MonsterV]

Microfinancing is pretty secure its just like normal type of loaning to banks or other institutions.
Micro financing will surely help people in a developing country to cover up expenses for living,but this comes with a risk.Because the loans being offered here is for short term so for sure interest rate will be higher compared to a regular loan.Plus the thing that microfinancing or loaning is being offered to poor or unemployed they loan for a reason,they loan because they need it for a living,and when the time for payment comes most unemployed person will surely not be able to pay this off and the taxes will built up and the one who loaned it will be down to zero and to negative in terms of finance.Chances of lose will be higher for sure.

Yes, I know the blockchain does provide various benefits, and this time it's about microfinance. And certainly in microfinance many loans will be made, but other problems are not only in terms of interest but can be seen in terms of collateral as well.

As we know, blockchain is more synonymous with the decentralized system, then how do they make collateral systems safer?

[dothebeats]

In developing countries, this is exceptionally hard considering that those who may wish to get a hold of such a financial service are either in deep debt, too poor to offer a collateral or mostly scammers using fake identities to later default on the loan. Fast cash is accompanied with high interest rates and a short repayment term, so while the idea sounds promising, it just wouldn't work on developing countries and would only worsen the state of those people who don't know how to handle their finances.

[Ailmand]

In developing countries, this is exceptionally hard considering that those who may wish to get a hold of such a financial service are either in deep debt, too poor to offer a collateral or mostly scammers using fake identities to later default on the loan. Fast cash is accompanied with high interest rates and a short repayment term, so while the idea sounds promising, it just wouldn't work on developing countries and would only worsen the state of those people who don't know how to handle their finances.

Micro financing is intended to give loan to small businesses or people with little income. I agree with your statement, even if it is intended to help people who has no access to financial service, it might just become a burden to them since some people who are financially incapable doesn't really know how to handle their finances.

[MakeMoneyBtc]

In developing countries, this is exceptionally hard considering that those who may wish to get a hold of such a financial service are either in deep debt, too poor to offer a collateral or mostly scammers using fake identities to later default on the loan. Fast cash is accompanied with high interest rates and a short repayment term, so while the idea sounds promising, it just wouldn't work on developing countries and would only worsen the state of those people who don't know how to handle their finances.

Well, that's exactly why microfinancing was created, to help the poor people create a business and get out of poverty. I haven't done any research to see if this companies that offer this kind of services can maintain a good overall profit range since it's always risky loaning money to a person that's living in poverty. But they offer lots of micro loans so they can pretty much be assured about ending up in profit because the fraction of loans that are not paid will be recovered by the interests made from those who are paid considering the fact that the interest rate is much higher than it is for normal loans offered by banks.

[pooya87]

Blockachain has intergrated in our lives so tense, that now it’s used almost everywhere.

not really!
the only actual usage that blockchain has had is for bitcoin and then the copy cats known as altcoins. other than that the usages are extremely limited to the point where it is useless in most places.

While banks are thinking to implement blockachain into its structure, I’d like to know what about microfinancing? How secure is it, what are chances not to lose? What about microcredits and other stuff?

we have to wait and see, i don't think that much is going to change in this area. it is still banks and with their centralization they will always go the same direction.

[Kakmakr]

Micro financing in Bitcoin is just a little bit more complex, because you are mostly not going through a regulated financial institution to get these loans. Some people will offer micro loans and they will facilitate this service through a third party escrow service to establish a trust relationship for the transaction.

The future will include the use of smart contracts for these arrangements. We will also see large regulated financial institutions coming on-board, like Fidelity to offer Bitcoin micro financing in the future. 

[minhngocs90]

BTC is up more??