Bitcoin: An Investment Option for Filipinos?
With global initiatives for vaccinations and economic recovery strategies, what does this mean for investing in cryptocurrency in the Philippines? Amidst the global pandemic, Bitcoin, cryptocurrencies, and cryptocurrency exchanges like Binance have seen—what may be to some—unprecedented growth. Even for traditional investments like stocks, more Filipinos reportedly bought stocks at the height of and primarily because of the community quarantine, according to Bloomberg. Certainly, our assumptions about investing during a time like this may need some clarification and revision, which may enlighten us regarding our own investment options moving forward.
Investing Amidst and Beyond the COVID-19 Pandemic
When the COVID-19 pandemic overwhelmed nearly every nation on the globe, economies took the brunt of the effects of the lockdowns and community quarantines. The first recession in 30 years, public and private sectors of our country from large institutions and companies to MSMEs, or micro, small, and medium enterprises, suffered significant losses. For the workforce, the losses took form in the indefinite closures of places of employment, especially those offering non-essential goods and services, retrenchments, and pay cuts. There would be no shortage of stories and news regarding the financial repercussions of the lockdowns and inter-country border closures, especially for most of 2020, not to mention the healthcare crisis at the core of the pandemic. According to the United Nations International Labour Organization, approximately 25 percent of the Filipino workforce were affected at the height of the lockdowns in August 2020.
One of the reasons indicated why, even in such a scenario, there was still a significant number of Filipinos who put money towards investments is how digital transactions and fintech supplemented their efforts and initiatives for sustaining their sources of income, right from the four walls of their home. Now, with the gradual reopening of the economy and the distribution of vaccines, we can only predict the capacity for growth unhampered by a global health crisis.
Profile of Filipino Crypto Investors
According to an Organization for Economic Cooperation and Development report in 2019, half of all Fiilipino cryptocurrency owners were aged 45 to 54, most of them men who were employed with advanced degrees. They bought crypto because they were curious, sought to capitalize on high and swift gains, and used it as legal tender in their online transactions.
On the other hand, according to statistics gathered by the Business Mirror, nearly a quarter of Filipino stock investors are 19 to 29 years of age and almost half are aged 30 to 44. We are no strangers to forex trading either. Recently, Filipinos took the top two spots in a Southeast Asian online trading competition. Because of the development of their online portals for payments, selections, trades, and cash-outs, traditional investing in the stock market and fiat currency exchange has been brought closer to the mainstream, especially among the young working class.
Crypto as a Catalyst for the Future of Fintech
While studying the uptrends and downtrends of Bitcoin may seem overwhelming to new or prospective investors, cryptocurrency may not just all be about profiting from the surge in prices. Cryptocurrency and the technology of blockchain are now being utilized by fintech developers, from remittance services to personal financial services. Investing in Bitcoin and digital currencies could very well mean investing into the future, especially for the Philippines, for three particular reasons.
Accessing traditional markets, banks, and financial institutions require effort and extra diligence from people who have less capacity and who are located in rural areas far from cities and town centers. Cryptoassets and crypto technology bridge the gap between the under-served members of the community and financial services.
Scams and Ponzi schemes have long used the name “cryptocurrency” to hook in “investors” with promises of incredulously high returns from the money they put in. However, with the proper education and rollout, the unbanked and under-served of the community will benefit from the security measures of crypto technology, especially protection from fraud.
Efficiency is but another by-product of the inclusion that crypto supplements fintech with. One example of this is how money remittance services powered by cryptocurrency, especially cross-border transfers, can be much quicker and cheaper than their traditional counterparts.
Register your account in your P2P cryptocurrency exchange today.
Since its launch in October 2019, Binance’s P2P platform has supported approximately 31 fiat currencies, including the Philippine Peso. It was also able to process trades of more than $1 billion. For their Global P2P Merchants Program, the company now actively searches for local merchants with reliable crypto and fiat access. Here, verified merchants enjoy a lot of benefits—exclusive support for customers, VIP discounts, ad transactions and postings, and security deposits without any fees.
With its zero transaction fees, Binance offers an escrow service—which aims to ensure that all of the cryptos will go to the users’ wallets. Its P2P platform also lets users gain more access to various financial services, likespot, margin, lending, and futures trading of Binance.com.