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If you think wealth inequality is bad now, the wealth inequality in a hypothetical Bitcoin economy would be orders of magnitude worse. Please explain, is this
by doggosphere 5y ago
If you think wealth inequality is bad now, the wealth inequality in a hypothetical Bitcoin economy would be orders of magnitude worse.
Please explain, is this belief because wealthy people have front run Bitcoin by accumulating it early on?
As it stands now, fiat currency drives wealth inequality when the federal reserve injects trillions of dollars into the system. That money makes its way to store of value assets like stocks and real estate. Poorer people tend not to own those assets, but of course would one day like to. Since most of their net-worth is comprised of cash, they suffer the most when cash is devalued by printing. Every day that passes makes it more unlikely that they will ever own those safe haven assets, or they'll own proportionally even less.
In a Bitcoin economy, there is no flip of the switch, no button to be pressed that allows this to happen. In a hyperbitcoinization event, where all the world's wealth is transferred into Bitcoin, the earliest people are rewarded the most. But no further arbitrary devaluation of assets can occur. Monetary saving power is restored to people, not governments.