How Bitcoin Can End Income Inequality
Many experts believe Bitcoin can help raise living standards in many ways. Find out how Bitcoin can end income inequality.
Income inequality is one of the significant challenges facing most global economies today. The wealth gap has significantly increased over the years, hitting record highs in 2020. The reality is that the bottom half is getting poorer while the top half is increasingly gaining much wealth. That has convinced many people to look for new investment avenues such as crypto to tame the growing income gap.
Several researchers, academics, and financial experts have explored Bitcoin’s potential to end income inequality. Some believe cryptocurrencies such as Bitcoin are future financial instruments that will streamline the global economic disparities. Others are also concerned crypto is highly volatile and cannot serve as a reliable payment method and asset. Nevertheless, proof exists of Bitcoin’s ability to fight income inequality. Here’s how Bitcoin can address the global income inequality.
Robust Economic Opportunities
Satoshi Nakamoto invented Bitcoin after the 2008 financial crisis to bridge the global wealth gap. Thus, the group unveiled it as a decentralized means of payment and asset. Since then, it has inspired numerous economic opportunities that never existed before. Crypto exchange businesses are among the primary beneficiaries of the Bitcoin revolution.
Crypto exchanges such as the crypto engine are online-based marketplaces where you can purchase, trade, and store Bitcoin. They also allow users to transact and trade Bitcoin with other cryptocurrencies. Thanks to the many businesses accepting crypto payments, you can now use Bitcoin to acquire assets, including real estate property.
Bitcoin offers several investments avenues to seasoned investors and novices. Even if you may not want to trade Bitcoin or start a crypto business, you can still invest through crypto mining or lending. The latter mainly involves lending your Bitcoin funds to companies or individuals for interest. Those with basic knowledge of crypto and online marketing could earn Bitcoin from affiliate marketing and Bitcoin consultancy services.
Bitcoin has also inspired ground-breaking innovations in various global tech sectors, with several products and services built around it. The robust economic opportunities promote financial inclusion and growth, critical to ending income inequality.
Decentralized Transactions
The financial systems in many parts of the world are centralized, with the government regulating all transactions. The governments use their central banks and laws to restrict all financial transactions. That means they also influence the money supply and circulation. However, putting the public’s trust and wealth in the hands of a single entity is a risky move, with several pitfalls.
Bitcoin is a decentralized digital currency and asset, not subject to government or institutional influence. Its supply exclusively relies on an underlying protocol, making it resistant to any form of manipulation. Unlike the traditional systems that usually require third parties to complete cross-border transactions, Bitcoin payments do not involve any intermediary.
The absence of third parties and government restrictions in Bitcoin transactions facilitates quick, low-cost, and reliable money transfers. Bitcoin enables even the unbanked to access capital and do business with the rest of the world, promoting financial inclusion. It eases the flow of capital across international borders, helping the fight against wealth inequality.
Improved Transactional Security
Many marginalized people often lose money to the bureaucracies of the traditional financial systems. One of Bitcoin’s fundamental roles is to do away with those bureaucracies. Instead of unreliable third parties, Bitcoin uses blockchain technology to verify and validate all transactions. It encrypts the data on an irreversible public ledger, making it extremely difficult for anyone to manipulate transactions. The blockchain ledger ensures high-level transparency in financial transactions, encouraging investments and discouraging fraud and corruption.
Overall, Bitcoin may not end income inequality on its own. However, it offers robust economic opportunities and ideal conditions for growth and development, reducing the global wealth gap significantly.
