Microfinancing is pretty secure its just like normal type of loaning to banks or other institutions.
Micro financing will surely help people in a developing country to cover up expenses for living,but this comes with a risk.Because the loans being offered here is for short term so for sure interest rate will be higher compared to a regular loan.Plus the thing that microfinancing or loaning is being offered to poor or unemployed they loan for a reason,they loan because they need it for a living,and when the time for payment comes most unemployed person will surely not be able to pay this off and the taxes will built up and the one who loaned it will be down to zero and to negative in terms of finance.Chances of lose will be higher for sure.

Cryptocurrencies attract people thanks to the principles of openness and greater accessibility than classical stock investments. when microfinance projects created on the blockchain and platforms that provide bonuses for managing digital assets began to appear, people's interest is shifting towards cryptocurrencies, not banks

In developing countries, the blockchain can really be a good helper. Getting a bank loan at those huge interest rates is not a pleasant prospect. But the asset management system built on blockchain technology will not only provide data protection, but also offer more favorable terms. Most often, such platforms take only commission for transactions, which is significantly lower than bank charges.
 

Blockchain is the underlying technology of Bitcoin, Along with the Bitcoin, Blockchain technology is also an invention itself that can be used for security purpose in different sectors, therefore, proper utilization of both as an individual asset is important

In developing countries, this is exceptionally hard considering that those who may wish to get a hold of such a financial service are either in deep debt, too poor to offer a collateral or mostly scammers using fake identities to later default on the loan. Fast cash is accompanied with high interest rates and a short repayment term, so while the idea sounds promising, it just wouldn't work on developing countries and would only worsen the state of those people who don't know how to handle their finances.

Well, that's exactly why microfinancing was created, to help the poor people create a business and get out of poverty. I haven't done any research to see if this companies that offer this kind of services can maintain a good overall profit range since it's always risky loaning money to a person that's living in poverty. But they offer lots of micro loans so they can pretty much be assured about ending up in profit because the fraction of loans that are not paid will be recovered by the interests made from those who are paid considering the fact that the interest rate is much higher than it is for normal loans offered by banks.

Micro financing in Bitcoin is just a little bit more complex, because you are mostly not going through a regulated financial institution to get these loans. Some people will offer micro loans and they will facilitate this service through a third party escrow service to establish a trust relationship for the transaction.

The future will include the use of smart contracts for these arrangements. We will also see large regulated financial institutions coming on-board, like Fidelity to offer Bitcoin micro financing in the future.