Birth of Bitcoin in microfinance industry

[andreijoaquin]

I've been thinking of using bitcoin to help individuals especially those womens (I mean a plain housewife) who wanted to have additional income. Then suddenly this idea of microfinance gave me such an interest.
In many countries the evolve of microfinance grows fast
 In fact, the government is really looking on it as a big help to the economy. Since banking institutions cannot offer such loans to least people, this microfinance open up a door and lend ordinary people with such low interest to help them start their own business.
If bitcoin can be use by a microfinace institutions as a new source of fund I think the goal of poverty eradication of many governments can be solve.

[bekti3]

indeed, it is quite a good idea and idea to make Bitcoin a source of funds for the micro-economy. will but with bitcoin interest that is not centered is one of the obstacles to it all. here it means that bitcoin cannot be controlled in a certain company or government industry that can easily lend on bitcoin. because the values and systems that spread out become a problem.

[fiulpro]

I've been thinking of using bitcoin to help individuals especially those womens (I mean a plain housewife) who wanted to have additional income. Then suddenly this idea of microfinance gave me such an interest.
In many countries the evolve of microfinance grows fast
 In fact, the government is really looking on it as a big help to the economy. Since banking institutions cannot offer such loans to least people, this microfinance open up a door and lend ordinary people with such low interest to help them start their own business.
If bitcoin can be use by a microfinace institutions as a new source of fund I think the goal of poverty eradication of many governments can be solve.

But the fact still remains the same :
Why would Government institutions think about using bitcoins and not other government made cryptocurrencies ? Since we already know that everyone out there is now trying to do this only. The US , India, China....I do believe they will start using these fiat 2.0 for this. But if they wanted to give opportunities they would have easily done this with fiat too you know.
With such big stimulus bills coming in many countries I do believe they can start 0% bank loans and help people in no time. Bitcoins itself changes in value thus could cause problems for the people who took it as a loan. If someone took 1 BTC as a loan back in the 2019 and decided to give back now.... I think they will have to use their profits too , this will forever be incomprehensible.

[verita1]

If I receive a loan of $ 100 (0.002 btc) based on bitcoin at ($ 36,554.82) and I must repay it a year without interest.
If next year the price of Bitcoin reaches $ 60,000 I should still pay (0.002 btc) for my loan.

It sounds good if the borrower executes a successful plan and also implements "bitcoin is accepted here" in his business. Everyone wins if the currency for their economy is bitcoin.

Some businesses have done well by exchanging their entire cash reserves to bitcoin.
They receive their income in dollars and exchange them for bitcoin as it did:

https://twitter.com/TheRealTahinis/status/1295770434349281281?s=19

[Coyster]

OP, your idea is pretty strange cause microfinance funds is given to the unemployed or to people who earn very little, so that eliminates any chance that they are going to hodl Bitcoin if they are given, they'll straight away convert to fiat, so it's much better for the beneficiaries of microfinance funds (loans) to receive it in fiat so they could immediately start up a small business with it or cater for some home needs which is very important.

[Twinkledoe]

OP, your idea is pretty strange cause microfinance funds is given to the unemployed or to people who earn very little, so that eliminates any chance that they are going to hodl Bitcoin if they are given, they'll straight away convert to fiat, so it's much better for the beneficiaries of microfinance funds (loans) to receive it in fiat so they could immediately start up a small business with it or cater for some home needs which is very important.

Seems not practical if they will be receiving small amount of funds in terms of satoshis, because they will think of the transaction fee that they will incur if they will convert it to fiat. So it is better to finance them in their fiat directly. Let them think what kind of small business they want to build with. Also, they need to be educated with bitcoin or crypto so they know about the current rates in the market, if in case they need to pay it with satoshis. Right now, seems not practical but maybe in the future when almost everybody is dealing with bitcoin or crypto.

[Vaskiy]

Microfinance industry using bitcoin to support the development/upliftment of individuals is really a good plan. Whenever we think of bitcoin to be used on any of the sector, it is must to think of the volatility. If the market turns downward in a short time period after the fund is being provided with low interest. On what basis should the beneficiary need to repay to the respective microfinancing company.

[yhiaali3]

Indeed, this is something encouraged by many governments around the world, especially in poor countries and rural areas where poverty is widespread and there is a lack of resources. There are many people who are able to make their own small projects but they need financing. Funding small projects using Bitcoin will have a positive impact on this People to help them start their own business will also have a positive impact in terms of increasing the spread of Bitcoin around the world, especially in these poor areas.

[zanezane]

Microfinance industry using bitcoin to support the development/upliftment of individuals is really a good plan. Whenever we think of bitcoin to be used on any of the sector, it is must to think of the volatility. If the market turns downward in a short time period after the fund is being provided with low interest.

That was the first problem that I have thought of, the inherent volatility of bitcoin is still a problem within the bitcoin market. Microfinancing is a difficult one because there will be some borrowers that will not be willing to pay at the right time, not to mention that this idea will not be tied to financial institutions that can help the founder when it comes to getting back the loaned money. If I may, I also want to throw in an idea, instead of a microfinance why not try investment where you let the money sit in a stable coin and do some trading with the half of the funds.

[bits4books]

Wow you came up with credits in BTC! Yes, and micro-loans came up! What's next? Can you come up with an excellent scheme for affordable earnings that will work by attracting new participants?
For God's sake, stop thinking about how to create more fiat at the expense of cryptocurrency. You first fight with fiat saying that this is the worst of evils and then you yourself offer to print even more fiat so that everyone is happy. What for? For what? Why not go better in the direction where people pay with cryptocurrency and do not earn fiat on it? These are two maximally different and diametric directions and with each step towards the stupid "raise money on the crypto " you are further and further from God.