Housing & Shelter

---

Homelessness and housing insecurity are pressing issues worldwide, with millions of people struggling to find stable and affordable housing. There are many systemic issues which contribute to housing insecurity globally, many of which are highly dependent on local context and socio-economic realities. However, many of these have common features: low-income and poverty; barriers to accessing accounts with traditional financial institutions; barriers experienced by housing service organizations in matching the daily needs and realities of those they serve; and other barriers. Bitcoin, a decentralized digital currency, has the potential to transform some of the ways we approach homelessness and housing insecurity. 

Empowering People Experiencing Homelessness with Financial Education and Independence

One of the primary reasons for homelessness is a lack of financial stability and independence. Bitcoin offers an opportunity for people experiencing homelessness to gradually regain control over their finances by providing access to a decentralized and censorship-resistant currency. With Bitcoin, individuals can store their money securely and privately, without relying on traditional financial institutions that may exclude or exploit them.

Studies have shown that providing financial education and resources to people experiencing homelessness can be an effective way to help them overcome their situations (1). Bitcoin can be a powerful tool for financial education, as it is easy to learn and offers a tangible way for individuals to take control of their finances. Moreover, Bitcoin can help the homeless to save money and build credit, which is essential for ultimately securing stable housing and employment.

For individuals with high rates of transiency in shelters and other short-term accommodations, Bitcoin enables a way to safeguard money digitally and without reliance on any third party. 

Improving Housing Assistance and Support Services

Traditional housing assistance programs often face challenges, such as bureaucratic red tape, limited funding, and insufficient outreach to those in need. Bitcoin can help to address these issues by providing a more efficient and accessible way to allocate resources and support services.

For example, a housing support organization could accept Bitcoin donations or use Bitcoin to purchase essential items and supplies, like food and clothing, for individuals experiencing homelessness. This would enable them to bypass traditional financial institutions and allocate resources more effectively, reaching more people in need.

Additionally, Bitcoin can be used to create a decentralized and transparent ledger of housing assistance and support services, ensuring that resources are distributed fairly and efficiently. This can help to reduce fraud and corruption, while also providing greater accountability and transparency to donors and beneficiaries.

Housing support organizations can even explore joint custody arrangements of Bitcoin and providing micro-loans and stipends for participation in services and programs. These can all be defined by the organization based on particular goals and in keeping with clear values and ethics.

Creating Affordable Housing Options

Bitcoin can also be used to create new types of affordable housing options, such as housing cooperatives and community land trusts. Bitcoin can be used to facilitate the creation of housing cooperatives, where members pool their resources to purchase and maintain properties. This can provide a more affordable and sustainable alternative to traditional housing options. Bitcoin can be used to fund community land trusts, which acquire and hold land for the benefit of the community. This can help ensure that land is used for affordable housing and other community needs, rather than being exploited by other third parties strictly for profit.

Reducing Transaction Costs and Improving Accessibility

Bitcoin's decentralized nature eliminates the need for intermediaries like banks, which can result in significant transaction cost savings. This is particularly important for low-income individuals and organizations that may be struggling to afford traditional financial services. Landlords and property managers can accept Bitcoin as rent payments, reducing transaction costs and providing a more accessible means of payment for tenants. Non-profit organizations and charities can use Bitcoin to send and receive donations, allowing them to reach a wider audience and reduce overhead costs associated with traditional banking systems.

Promoting Economic Stability and Financial Inclusion

Bitcoin has the potential to promote economic growth and stability, which can help to address the root causes of homelessness and housing insecurity. By providing a new and accessible form of money, Bitcoin can help to stimulate local economies and create new job opportunities, which can help to reduce poverty and improve living conditions for those who are most vulnerable.

Moreover, Bitcoin's decentralized nature can help to reduce the reliance on central banks and governments, which can be a source of economic instability and insecurity. By providing a more stable and predictable economic environment, Bitcoin can help to promote economic growth and stability, which can ultimately help to address the underlying causes of homelessness and housing insecurity.

Bitcoin offers a unique and innovative tool to help tackle to the pressing issues of homelessness and housing insecurity. By providing financial education and independence, improving housing assistance and support services, providing innovative solutions for affordable housing, and promoting economic growth and stability, Bitcoin has the potential to transform the way we approach these issues. Advocates and professionals in the housing support services sector should embrace and adopt Bitcoin as a tool for creating positive change and helping those who are most in need.

Advocates, service providers, and organizations should consider collaborating with individuals and organizations that specialize in Bitcoin education and support. Resources and guides on how to use Bitcoin for financial independence and protection can be made available, along with educational workshops.

The decentralized, global, digital nature of Bitcoin also provides advocates and organizations unique opportunities to collaborate and act on a global scale. This includes receiving donations, disbursing support, and collaborating with partners across jurisdictions.

Lastly, the role of Bitcoin as a long-term savings technology also provides organizations working to end domestic violence with a new tool for organizational stability and growth. Organizations should consider adding Bitcoin as a treasury reserve asset for future financial growth. This offers the potential to achieve greater financial stability and grow service capacity in future.