- June 28, 2022
In recent decades, wealth inequality has soared to record levels. Currently, the country’s top 5% of earners are experiencing growth far exceeding any other income class.
If data is any implication of the future to come, the wealth gap will continue to grow. Unfortunately, the current monetary policy does not solve the issue.
Loss Of Faith
Looking at history, some might argue that this could have been expected.
After all, the move from the gold standard to a faith-backed fiat currency in 1971 gave way to losing faith in USD.
One reason inspiring the loss of faith is the role the American government plays. Without any regard for the possible long-term consequences, they printed large amounts of fiat currency. Americans now experience record inflation.
The annual inflation rate for the United States for the past 12 months since May is 8.6%. This is the highest inflation rate we have seen for decades.
As a result, many are now looking for potential solutions to this significant alarming economic issue.
How Can Bitcoin Help With Wealth Inequality?
A digital asset, like Bitcoin can solve this issue of economic inequality.
Because Bitcoin is decentralized and finite in supply it is different from fiat currency.
A central authority cannot manipulate the asset’s value and will also protect users from inflation since the supply will always be finite.
Finally, Bitcoin is also accessible to people of all income brackets, which means that even people of the lowest income brackets will be able to utilize Bitcoin.
On the other hand, many living in poverty cannot access fiat financial services. Oftentimes, high restrictions and high barriers to entry make it difficult.
The most significant characteristic of Bitcoin is that it is free from government control. (AKA, it is decentralized).
This truth means that it is the fairest and most neutral currency reducing manipulation where possible.
When the manipulation issue becomes a nonfactor, Bitcoin shines. BTC is one of the top contenders for reducing the problem of inequality that the United States, and much of the world are currently experiencing.
Bitcoin is especially gaining traction in third-world countries. These fast adoption rates are no surprise for countries with little access to the traditional finance system.
According to Chain Analysis last year, the use of Bitcoin and other crypto experienced over 1200% growth in Africa.
This growth is likely because of ease of access. Users only need a smartphone to access the Bitcoin network, and sometimes identification, but not always.
Bitcoin Is the Way To Wealth Equality
Essentially, Bitcoin provides financial and banking infrastructure for the rest of the world left out by the traditional banking system.
Ultimately, this creates a fairer and more equitable world, solving the issue of inequality. (Or at the very least, minimizing the wealth gap).
If you’re looking for a crypto-first banking option with nationwide Bitcoin ATM access, choose Byte Federal’s ByteWallet. Go Bank, Yourself.