In the developing world, cryptocurrency adoption has been slow to start, but it has the potential for rapid growth. People who live in developing countries often lack easy access to a traditional brick-and-mortar bank. They might not have a regular paycheck to deposit. Fees can eat up a lot of the income they do earn. The rollout of 5G could help people in the developing world gain access to both better internet service and cryptocurrencies that would render the need for a regular bank unnecessary.
What you'll learn 👉
Internet Access in the Developing World
At best, most developing countries have 4G internet service. The next iteration of faster internet is 5G. It will be a lot faster. The problem is the cost of the infrastructure. Most developing countries just don’t have the money to invest in infrastructure. Moreover, a lot of them have seen huge economic losses as a result of the COVID-19 crisis. Even if these countries did have some funds ready to invest in 5G, those plans may have been postponed.
How a Switch to 5G Could Help Developing Economies
People in developing countries rely on internet service for communications, news entertainment and business. If countries are able to invest in the 5G infrastructure, they could enjoy much faster service. Cryptocurrency adoption requires faster service in order to reduce latency and drive connections to more devices. Faster internet would make cryptocurrency transactions less expensive.
What 5G Is
5G is simply the next generation of wireless networks. It offers an exceptional increase in speed. It also promises a higher capacity and quick response time for apps, downloads and streaming media. The technology also supports more mobile broadband applications, including the platforms and exchanges that cryptocurrency requires for buying, selling and trading.
How 5G Will Bolster Cryptocurrency Use
On 4G, users can expect a speed to 50 to 100 Mb/s. While that’s acceptable for watching YouTube, it’s not fast enough to transmit data in real time on high-volume platforms. 5G has speeds averaging 1 to 2 Gb/s. It boosts the responsiveness of devices. People could use their phones to watch cryptocurrency markets in real time. Cryptocurrency wallets will be easier to use with these faster speeds.
Who Will Benefit from 5G in the Developing World
It’s likely that 5G will arrive in large cities first. This is where the most people will benefit from it. People can use it for their everyday needs, such as making a payment for a service or transferring money to a friend or family member. For example, a person living in the city might want to transfer funds to their family living in the countryside. People in developing countries who want to make money by buying and selling cryptocurrency will also have an easier time of it with 5G. We are already seeing this growth with the volume of cryptocurrency users in India skyrocketing and the Bitcoin price in India steadily increasing. For the foreseeable future, things like P2P Bitcoin trading in India will be done in larger cities like New Delhi rather than rural parts of the country. Over time 5G will reach across the globe for everyone to enjoy.
Why Corporations May Fuel Cryptocurrency Adoption in the Developing World
Large, multi-national corporations are taking big steps toward implementing blockchain solutions. They’re using blockchain in supply chain management, healthcare delivery, real estate and manufacturing. When these companies, such as IBM and Accenture, help with the necessary investments to bring 5G into the developing world, everyone will benefit.
