Wealth inequality is an issue that has plagued mankind for millenniums. Ancient Egyptian monarchs received riches from their subjects as they were praised like gods. Feudal overlords controlled fruitful manors as their peasants farmed the land. In the modern day, corporate and political powers continuously increase their unfathomable wealth while commoners live paycheck to paycheck.
A sentiment of revolt is developing in our modern society, denouncing this unfair status quo. Candidates like Bernie Sanders gained a lot of steam during America’s 2016 Presidential Election. However, the cryptocurrency arena is conveying an old message to a new generation of people. Wealth inequality is inevitable.
Let's look at Bitcoin.
This new currency is touted as being an opportunity to diverge from the centralization of power in regards to currency. It allows the average Joe to build wealth in a world where so few control so much. Well…
Using the Bitcoin Rich List, we can see that the top 0.54% of holders of the coin control 87.15% of currency!!! In other words, the richest 0.54% in Bitcoin own 87.15% of all Bitcoins in existence. I must acknowledge that some of these top accounts are coin exchanges; however, the numbers are still astounding.
This type of wealth concentration is a lot more pronounced than what is present in fiat currency. How did we get to this state? That is a good question. Originally I thought it was because the top accounts invested in Bitcoin in the early days, but upon further investigation, I realized this is not the case. Perhaps this dilemma can answer why we see this trend virtually anywhere in our society that monetary transactions occur (ie. Youtube Ad Revenue, US University budgets, etc.)
If anything this shows that wealth inequality cannot easily be resolved with one-time, blanket legislation. Instead, it is constant battle requiring never-ending oversight by those seeking to better mankind.
What do you think of the wealth distribution of Bitcoin?
How do you think this issue in a broader sense should be addressed?
BTW, Business Insider did an insightful article titled This Is How Income Inequality Destroys Societies. You may find it interesting.