Breaking Barriers: Tectum’s Contribution to Financial Inclusion Through DeFi

Everyone is always exploring ways to build wealth. The reason may range from being financially independent or planning for the future. However, the available opportunities for wealth creation are limited to a certain group of people. However, there is financial inclusion through DeFi.

by Tectum expert Emmanuel May 22, 2024

Financial Inclusion Through DeFi

This article will highlight the challenges of building wealth in this day and time. It will also emphasize why people are turning to cryptocurrencies as the more sustainable solutions. Finally, this post will explore how Tectum is breaking the barriers inhibiting financial inclusion.

Financial Inclusion Through DeFi: Challenges of Building Wealth

Everyone wants to build wealth that will outlive them to serve as some legacy of sorts. However, these people cannot do this for various reasons. Some of those reasons include those outlined below:

Investment Knowledge Gaps

Most peoples simply do not understand what it takes to build wealth. This is not just about putting your money in some scheme with hopes that it will grow overtime. There are various factors and stages involved in wealth creation. Most individuals have zero idea about these intricacies.

Since people lack proper investment knowledge, they end up getting scammed. This leaves a terrible perception about investments, and they totally decide against it in the future.

Inflation and Economic Uncertainty

Besides those who do not understand investments, they are those who totally avoid it due to economic uncertainty. Inflation has become a global phenomenon at this point, with most countries recording increasing numbers. This is due to the mismanagement that have taken place over the years.

As inflation increases, the value of money decreases and this spills over into investment. Therefore, the value does not yield any proper returns. This defeats the aim of investing funds for a certain period of time. For a better understanding, consider the example below.

If someone sets aside $10,000 aside into a scheme that will yield 20% returns after ten years. However, inflation rises above 32% in the country where they reside. Their investment becomes a waste, as the capital gains will no longer be worth it.

High Entry-Level Requirements

A saying goes, “the most difficult million to make is the first million”. This saying outlines the challenge of crossing the first milestone in wealth creation. One of the reason for this is the requirements for entry.

Before now, investments were meant for a specific group of individuals with significant amounts of money. This requirement alone is beyond the reach of the average person working a regular job. It also explains why the rich keep getting richer.

Crossing that initial barrier is a major hurdle that only a few people are able to. While things become much easier after this point, interested investors cannot even get aboard in the first place.

Financial Inclusion Through DeFi: Why People Are Turning to Blockchain-Based Assets

Cryptocurrency investments are becoming even more popular by the day. Bitcoin Magazine revealed, via a tweet, that Bitcoin ETF reached $235 million in inflows on the 21st of May, 2024. These numbers emphasize

Removal of Middlemen

One of the reasons investment is expensive is because of the in-between people dictating how much people can capitalize. This article does not claim that their input is useless or middlemen have no function. However, their importance is exaggerated and their services are typically very expensive.

Anyone who wants to invest must pay Stockbrokers Commission, NSE Fees, CSCS Fees and Stamp Duties. With cryptocurrencies, anyone can trade and invest in digital assets without fuss. They only have to worry about gas fees when making transactions.

Unrestricted Access to Investment Options

As mentioned earlier, middlemen tend to dictate who has access to what. Other times, the legislation determines who can trade or invest in stock options. This is different from the “trading hours” restriction, where people can only trade within specific days and times.

With cryptocurrencies, people can trade and invest without any form of constraint. If you want to buy or sell a token at midnight, you are just a few clicks again. People must not wait till the “market opens”, as the DeFi market is always open.

Financial Inclusion Through DeFi: How Tectum is Breaking the Barriers

on our part, Tectum is enabling financial inclusion through DefFi by covering some areas of improvements. There are still certain challenges involved in cryptocurrency investments. Tectum identified those challenges and created solutions that will eradicate them.

Below are some ways through which Tectum is helping people to build wealth

Affordable Investment Opportunities

From the cost of investments to the transaction fees, Tectum is significantly lowering the barriers. Tectum SoftNote Bills enable people to send and receive Bitcoin for cheaper than getting a cup of coffee. This is a significant achievement, considering that people tend to shy away from crypto due to the cost of gas fee.

This crypto cash encourages people to trade and invest in several cryptocurrencies without having to worry about cut-throat fees. Furthermore, Tectum Labs is incubating futuristic projects like Three Protocol. Interested investors can capitalize on this opportunity, now that it is still undervalued.

Simplifying Investments

Besides the costs, many people still struggle with the nature of blockchain assets and their underlying technology. People already work for their money and are unwilling to work to invest it. In this regard, most persons will walk away if the process of investment becomes too complex. This explains why they tend to transfer all responsibility to a broker.

Tectum is changing the narrative by making cryptocurrency investments much simpler. The first process involves simplifying the Tectum SoftNote Wallet interface, such that even a newbie can utilize it. We also have several straightforward tutorials on our Gitbook that will guide people on how they can exploit current crypt capitalist opportunities.

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