As wealth inequality continues to grow throughout the world, so does the need to break away from fiat money systems. Could Bitcoin be the answer?
Wealth Inequality continues to grow
Are the days of the one size fits all fiat money system numbered? Some experts would say yes. Wealth inequality is higher than it ever has been in human history. This means that for many individuals, life and money will be a constant struggle. As said by the United Nations Secretary General in a speech from September of last year, “We are experiencing the sharpest decline in per capita income since 1870.” This rough economic climate leaves 70 million to 100 million people on the verge of not just poverty, but extreme poverty. In others words, it’s nearly impossible for the little guy, or the underdog to break out of the system and get ahead in today’s world. What we need is a kind of economic revolution that can bring forward a more inclusive finance system. That where Bitcoin steps in.
What is Bitcoin?
Let’s quickly go over what exactly Bitcoin is, as many people still dont fully understand. Bitcoin is not physical currency. There is no actual coin involved in the currency. Bitcoin is completely digital. Meaning that it is accounted for and transferred using computers. In 2009 the mysterious creator of Bitcoin, who we will discuss soon, sent out the famous, whitepaper, where he explained that his new invention should function as a way to decentralize global economics and step away from government regulated currency. But the digital money you acquire can be transformed into physical dollars, and thats where the undeniable value comes from. Digital money can be exchanged by using ordinary technologies like smartphones, your credit card, and numerous different online cryptocurrency exchanges . It can even be transferred into physical cash by withdrawing from certain ATMs.
The creator of Bitcoin has been a mystery for some time now, but is known, is that a person or a group of people in the guise of one person named Satoshi Nakamoto. Although he seemingly vanished two years after Bitcoin’s launch, he did leave proof of his intentions. He left a number of statements, clearly stating that his intentions for Bitcoin were meant to fight centralized currency manipulation. He had also wanted to create a more transparent system. This is evident as Bitcoin does function on a whole other network. A network that's a lot more transparent than a corporate bank. Every bitcoin transaction is recorded in a public archive called the blockchain. So basically all balances and transactions are public.
Power to the people
What many people dont realize, is that the whole reason Bitcoin was created in the first place, was to give more financial power to everyday people and to therefore take a little bit of power away from massive banking corporations. This is partly due to the fact that with digital currency like Bitcoin, anyone with internet access and a smartphone can deposit digital assets and begin earning interest as passive income. This is something that, with the standard fiat money banking system, a person wouldnt be able to do without a bank account. Without a bank account, the average person today would have difficulties with many aspects of life, like making any large purchase or paying taxes. And a surprising number of people know this first hand. According to the World Bank report, 1.7 billion people are living without bank accounts and are relying solely on cash to get by. Cryptocurrency gives people who don’t even have a bank account, the power to invest in their own finances, without the involvement of any big banks.
The great equalizer
Just as the internet has provided equality and opportunity to so many underprivileged people across the globe, so too has digital currency. When huge banks don’t control every financial aspet of one’s life, the possibility of climbing that financial ladder opens up. Giving everyone, not just those with bankccounts and a degree in economics, the access to wealth generation could change the world for the better. Bitcoin and other kinds of cryptocurrencies have already had such an impact on people’s lives and the world economy, that at this point, it’s time to recognize Bitcoin’s potential to help bridge the wealth gap around the world. Recently, Patrick Njorge, governor of the Central Bank of Kenya, stated in a WEF article that digital currency like Bitcoin, has helped people stay floating during the disastrous COVID-19 pandemic by “enabling people to pay for goods and services, receive compensation for their work, access social-assistance payments and secure financial support, such as bank loans, for their distressed businesses.”
Unfortunately, wealth inequality has only increased since Bitcoin’s creation in 2009, but now more than ever, people are starting to realize that they can have more control over their own money, and that it is not impossible to break away from the current fiat banking system.