How Bitcoin Can Aim at Reducing Global Inequality Across the Globe in 2020
As the global financial depression that crippled the world in 2008 came to an end, a peculiar financial system came to life and is today known as Bitcoin (BTC). During bitcoins launch on 3rd January 2009, the cryptocurrency’s anonymous founder, Satoshi, said the system is set in place to help bridge the inequality gap that has kept growing through the years. A recent post on Business Insider, explains how the pioneer cryptocurrency can be used to bridge this gap across the globe.
Bitcoin as a Safe Haven Asset
According to the Human Development Report by the UN 2019, over 20% of human development progress was lost due to systemic inequalities in 2018. Notwithstanding, according to the latest reports from the US Census, the middle class is growing thinner as the country faces the worst case of wealth inequality since the records began.
payments system of last resort
savings system of first resort
— Pierre Rochard (@pierre_rochard) December 22, 2019
According to economists and financial analysts, the growing demand and popularity in Bitcoin is set to stop the widening gap between the poor and the rich. Mark Yusko, the CEO and CIO of the investment advisory company Morgan Creek Capital Management, said blockchain systems, with Bitcoin leading the charge, will set forth a growing middle class as more investors are exposed to the coin. He said,
“The government and the elites want to have all the wealth, so they manufacture inflation and the wealth flows to the top. And that's why we have the greatest wealth inequality in the history of mankind. Bitcoin helps solve that because now we can opt out as an owner of assets from that fiat system.”
The transparent, immutable, secure and decentralized nature of Bitcoin allows users to send peer to peer payments without the ridiculous fees paid to banks while increasing transparency in the process.
A Fight Against Inequality in Developing Nations
While Bitcoin reduces the inequality across developed nations through ownership of a safe haven asset, developing nations across Latin America, Africa, Asia and South America benefit in a different way. According to a World Bank report, close to quarter of the worlds population do not own a bank account due to various reasons such as lack of documentation and the inability to access the services.
With Bitcoin, unbanked and underbanked users can easily transact across the network using only their smartphone and a stable internet connection. A number of Bitcoin applications are gaining widespread attention from users in developing nations such as Venezuela, Argentina and Zimbabwe economies that are facing hyperinflation.
Notwithstanding, efforts to educate users in developing countries on the benefits of Bitcoin, is also on a gradual rise. Education initiatives such as DLBRT (Distributed Ledger Technologies Blockchain and Research Technologies) in Kenya have taken a step to educate universities and corporations, opening up over 3,000 Bitcoin wallets to this date in their country.