I'm a person who would like to do some work for Bitcoin, so I monitor freelancing sites occasionally, and at this time I feel like the freelance market in Bitcoin is nearly dead. The Services board is 99% listings of services rather than people who are looking to buy some; XBTfreelancer is empty or has 1-2 projects most of the time; cryptogrind has mostly just ridiculously underpaid projects or again service announcements (shouldn't they be banned there?), and there's also not much available projects overall; workingforbitcoins has very little traffic, just a few projects per month.
It was theorized that Bitcoin will help alleviate poverty by allowing people to work online without any restrictions, but on practice this just isn't happening. In your opinion, what is the reason for this?
It's very much true! While the freelancing market is flourishing exponentially, bitcoin as a payment method is not growing. Majority of the well-established freelancing websites like freelancer or peopleperhour are only relying on Paypal as a payment method. The reason is not the number of jobs, rather the availability of bitcoin to the mass. Due to the confusing/no legal structure around bitcoin, common people are still not willing to use it as a payment method. Whoever small population is using it, they are more interested in bitcoin as an investment vehicle!
If we keep aside the legal factors, the only possibility for bitcoin to be used as a payment method is the stability of price. If bitcoin remains volatile like today, it's highly unlikely that it will be used as a currency for purchasing goods and services. We can see a lot more service purchaser in any field, only if the price of bitcoin becomes stable!