One thing that’s getting worse day by day is wealth inequality. Despite well-planned efforts to demolish this demon of wealth concentration, the gap between the rich and the poor seems to be widening more and more. All the government and charity efforts seem to be going in vain.
In such times of despair, crypto and blockchain seem to be providing a ray of hope. Here, we’ll discuss and explore all the possible reasons crypto could turn out helpful in easing wealth inequality and concentration all over the world. So if you’re interested, come along!
Crypto and Blockchain Decentralization
It has only been a decade since this new tech came into being and who knew that it would go on to become the biggest trend of the 21st century and eventually lead to taking over the world. The first-ever cryptocurrency Bitcoin is also the most hyped one. We’ve seen Bitcoin and other cryptocurrencies taking the world by storm in the past two to three years.
At first, crypto also had to face major criticism and setbacks that it wouldn’t prosper as a decentralized financial system. Some misconceptions also stated that crypto would be none other than a centralized finance system that would facilitate the wealth concentration at the top and will eventually result in aiding and benefitting the wealth inequality further.
But now after seeing its potential, many experts have stated that crypto has the ability to ease wealth inequality by providing a well-defined finance system that distributes wealth accordingly rather than accumulating it at the top.
Blockchain is the main hand behind cryptocurrencies and all the crypto-related tech. And this accompanies a lot of benefits. Down below, we have briefed all you need to know.
Easing Wealth Concentration
Talking to Cryptonews.com, Blockstream Chief Strategy Officer Samson Mow tells us crypto can definitely help to ease the wealth concentration problem. He stated that,
“Inequality is a big problem and Bitcoin fixes this. As people around the world opt-out of the fiat monetary system and adopt Bitcoin, they will no longer be trampled on by the monetary policy”
In order to avoid the rich getting richer and the poor getting poorer, cryptocurrencies can serve as a good counterfeit for this problem. And this is mainly due to the decentralizing capability of the blockchain structure and eventually the cryptocurrencies.
The decentralized finance system provided by cryptocurrencies and related tech is a huge step in diminishing wealth inequality. The end of middlemen in monetary tasks is also a further step in this regard.
So I think we’re now able to answer the question of can crypto decentralization help to diminish work inequality. The simple answer would be YES, it can. After facing a lot of criticism and setbacks, crypto tech has proved that it can be of great help in equalizing the wealth accommodation and maintaining the balance and gap between the rich and the poor.