Peer to peer lending – Welcome Echizenshi http://welcome-echizenshi.com/ Tue, 28 Jun 2022 09:47:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://welcome-echizenshi.com/wp-content/uploads/2021/06/cropped-icon-32x32.png Peer to peer lending – Welcome Echizenshi http://welcome-echizenshi.com/ 32 32 How New Era Technologies Can Reduce Financial Barriers in Healthcare https://welcome-echizenshi.com/how-new-era-technologies-can-reduce-financial-barriers-in-healthcare/ Tue, 28 Jun 2022 09:47:35 +0000 https://welcome-echizenshi.com/how-new-era-technologies-can-reduce-financial-barriers-in-healthcare/ The outbreak of the pandemic has exposed the growing disparity between the few who can access affordable quality health care and the many who cannot. Before the pandemic, countless Indians faced a dilemma, forced to choose between health and wealth. With 63% of India’s total health expenditure paid out of pocket, millions of families are […]]]>

The outbreak of the pandemic has exposed the growing disparity between the few who can access affordable quality health care and the many who cannot. Before the pandemic, countless Indians faced a dilemma, forced to choose between health and wealth. With 63% of India’s total health expenditure paid out of pocket, millions of families are being pushed into financial ruin. Now in the grip of the pandemic, millions of people, as well as the underserved and marginalized population, are faced with this impossible choice.

Driven by the need of the hour, the health sector must pave the way for equitable and affordable access to quality health care. The advent of virtual consultation, remote monitoring and telemedicine is reducing health care disparities, but many problems remain. The opportunity for digital lending in healthcare has never been greater and more urgent. Expected to reach $350 billion in 2023, digital loans can help break the health poverty trap for millions of Indians.

What is Digital Lending?

Digital lending is a FinTech innovation in which all processes encompassing borrowing and lending, such as loan application, approval, disbursement, and repayment, take place remotely through the web or mobile apps. According to the conventional paradigm, individuals facing medical emergencies borrow exorbitant loans from informal lenders or sell their personal assets while waiting for reimbursement from insurers, if any. With digital loans, people can avail instant emergency medical loans by uploading documents to a digital loan platform and get approved with minimal paperwork.

Digital lending apps leverage a combination of business models such as peer-to-peer lending and crowdfunding, along with new era technologies such as AI, automation and data analytics. This allows them to cover health costs and processing fees for borrowers with low credit ratings and low incomes.

Instead of being forced into a vicious cycle of poor health and poverty, digital loans can expand the reach of
inclusive health care for many underserved and marginalized communities.

Growth of digital lending in India

It is estimated that digital loans will grow exponentially, from $9 billion in 2012 to $350 billion in 2023. The global pandemic, largely attributable to this growth, has forced tens of millions of people to turn to digital lenders when faced with life-threatening emergencies and soaring healthcare costs. At the height of the pandemic, countless individuals and families resorted to online health services and instant digital loans. According to the FinTech Association for Consumer Empowerment (FACE), the volume of digital loans doubled to Rs 18,000 crore in the financial year 2021-22.

Accelerated by the proliferation of smartphones and supported by government initiatives, digital lending has the potential to reduce financial bottlenecks in healthcare. The financial disparity that prevents marginalized communities from accessing quality health services can be eliminated through digital lending. Digital loans can expand financial access, which will in turn increase access to healthcare. In a country like India, where nearly 70% of the population is isolated from the healthcare nexus in rural areas, digital lending and telemedicine can enable them to access quality healthcare.

Digital Loans: Means for Financial Inclusion and Healthcare India’s healthcare sector is plagued with several challenges such as sub-optimal infrastructure, affordability, inadequate insurance coverage, etc. Healthcare costs are mostly unpredictable, which is why instant loans through mobile apps for underserved communities
come as a blessing. By combining financial and healthcare innovations such as digital lending and telemedicine, underserved and excluded populations can access quality healthcare regardless of geographic, financial or insurance status. When finance is no longer a bottleneck for health care, India can pave the way to universal health coverage.

Based on the principle of financial inclusion, digital lending can also make great strides in reducing financial barriers in healthcare. By capturing India’s healthcare and credit-starved population, digital lending apps can double their customers. Already the
A preferred borrowing channel for millennials and Gen Z, digital lending can also become a beacon of hope for rural, underserved, and marginalized communities with little or no access to quality health care.

Touted to transform the current state of the credit-starved population in India, digital lending has immense potential to drive financial inclusion through last-mile connectivity. Given their penetration and India’s burgeoning population, digital lending platforms have barely scratched the surface and have many miles to travel and many lives to impact. With the help of new age technologies combined with healthcare innovations, India can achieve both financial inclusion and universal health coverage.



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How low can Ethereum price drop against Bitcoin amid DeFi contagion? https://welcome-echizenshi.com/how-low-can-ethereum-price-drop-against-bitcoin-amid-defi-contagion/ Sun, 26 Jun 2022 12:45:51 +0000 https://welcome-echizenshi.com/how-low-can-ethereum-price-drop-against-bitcoin-amid-defi-contagion/ Ethereum’s native Ether (ETH) token is down over 35% against Bitcoin (BTC) since December 2021 with further downside potential in the coming months. ETH/BTC weekly price chart. Source: Trading View ETH/BTC Dynamics The uptrends in the ETH/BTC pair generally suggest a growing risk appetite among crypto traders, where speculation is more focused on future Ether […]]]>

Ethereum’s native Ether (ETH) token is down over 35% against Bitcoin (BTC) since December 2021 with further downside potential in the coming months.

ETH/BTC weekly price chart. Source: Trading View

ETH/BTC Dynamics

The uptrends in the ETH/BTC pair generally suggest a growing risk appetite among crypto traders, where speculation is more focused on future Ether valuations than on holding their long-term capital in BTC.

Conversely, an ETH/BTC bear cycle is usually accompanied by falling altcoins and declining market share for Ethereum. As a result, traders seek safety in BTC, showing their sense of risk within the crypto industry.

Elimination of Ethereum TVL

Interest in the Ethereum blockchain has skyrocketed during the pandemic as developers have started turning to it to create a wave of so-called decentralized finance projects, including peer-to-peer exchange and lending platforms.

This led to a total value locked (TVL) boom in the Ethereum blockchain ecosystem, from $465 million in March 2020 to $159 billion in November 2021, up more than 34,000%, according to DeFi Llama data.

Ethereum TVL performance since 2019. Source: DeFi Llama

Interestingly, ETH/BTC jumped 345% to 0.08, a 2021 peak, over the same period, given an increase in demand for transactions on the Ethereum blockchain. However, the pair has since fallen over 35% and was trading at 0.057 BTC on June 26.

The drop in ETH/BTC coincides with a massive drop in Ethereum TVL, from $159 billion in November 2021 to $48.81 billion in June 2022, driven by contagion fears in the DeFi industry.

Additionally, institutions have withdrawn $458 million this year from Ethereum-based investment funds as of June 17, suggesting that interest in Ethereum’s DeFi boom has waned.

Bitcoin in trouble but stronger than Ether

Bitcoin faced smaller downsides compared to Ether in the ongoing bear market.

The price of BTC has fallen almost 70% to around $21,500 since November 2021, compared to a 75% decline for Ether over the same period.

Additionally, unlike Ethereum, bitcoin-focused investment funds have seen inflows of $480 million year-to-date, showing that BTC’s decline has done little to curb its demand from institutional investors.

Investments move in and out of crypto funds by assets. Source: CoinShares

ETH/BTC Downside Targets

Capital flows, coupled with growing mistrust in the DeFi sector, could continue to benefit Bitcoin over Ethereum in 2022, driving further downside for ETH/BTC.

Related: Swan Bitcoin CEO vs. Crypto Lenders: Users Are Well Undercompensated for Risk

From a technical perspective, the pair held above a confluence of support defined by an uptrend line, a Fibonacci retracement level at 0.048 BTC, and its 200-week exponential moving average (EMA over 200 weeks; the blue wave in the chart below) near 0.049 BTC.

ETH/BTC weekly price chart. Source: Trading View

In a rebound, ETH/BTC could test the 0.5 Fib line next near 0.062. Conversely, a decisive break below the confluence of support could mean a drop towards the 0.786 Fib line at 0.027 in 2022, down more than 50% from today’s price.

The ETH/BTC breakdown could coincide with an extended decline in the ETH/USD market, primarily due to the Federal Reserve’s quantitative tightening that has recently driven crypto prices lower against the US Dollar.

Conversely, weaker economic data could prompt the Fed to slow down its tightening spree. This could limit the downside bias of Ether and other crypto assets in the dollar market, according to Informa Global Markets.

The firm noted:

“Macroeconomic conditions need to improve and the Fed’s aggressive approach to monetary policy needs to ease before crypto markets bottom out.”

But given that Ethereum has never regained its all-time high against Bitcoin since June 2017 despite strong adoption, the ETH/BTC pair may remain under pressure with the 0.027 target in sight.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.