How Crypto Is Closing The Wealth Divide
Author: Elle Miller
Cryptocurrencies have been able to make waves in bridging the wealth gap all over the world. From banking the unbanked to more opportunities, anybody can start their digital wealth journey today.
The wealth disparity has grown so large that it threatens our society’s stability and security. We need to address this crisis immediately or risk having a society divided by class.
It's no secret that the wealth gap is widening. Just look at the data:
- The global economy is growing at a slow pace and global debt has reached $237 trillion.
- The top 1% of people own more than half of the world's wealth, while the bottom 50% own less than 1%.
- In the U.S., income inequality grew by over 20% between 1986 and 2016.
- The average net worth of white households in America is $171,000 compared to $14,600 for black households and $17,100 for Hispanic households.
The problem is that there was no corresponding increase in income for these individuals, resulting in an ever-widening wealth gap between rich and poor countries.
This is something that needs to be addressed before it becomes too late for us to do anything about it!
Thankfully, crypto has been able to make an impact.
Here are some of the ways that crypto is closing the wealth divide:
1. Crypto is democratizing access to wealth
The cryptocurrency market was once considered a niche and was only accessible by tech experts or people with enough money to invest in it. However, this has changed as more people are now familiar with cryptocurrencies and how they work.
Today, anyone can buy bitcoin or ether on Coinbase or another exchange with just a few taps on their smartphone — no stockbroker required! And if they want to learn more about cryptocurrency trading strategies, they can do that too.
This means that you no longer need to be rich or have advanced knowledge of technology in order to enter this space — anyone can join!
2. Crypto offers opportunities for low-income earners
Crypto is helping many low-income earners around the world earn extra income through mining or trading cryptocurrencies on exchanges like Binance or Kucoin. These platforms offer users a chance to earn extra income without having to worry about paying high fees like when using traditional money transfer services such as Western Union or MoneyGram which charge high fees since they operate on a centralized system where transaction costs are high due to intermediaries such as banks involved in processing transactions.
For some countries like India, El Salvador, Central African Republic, crypto has been the preferred way to transact. Where a lot of people don’t have paperwork or intermediaries like banks are preventing them from transacting, crypto has been the best tool for people to still participate in the global market.
3. Crypto can be an effective hedge against inflation
Inflation has been good for some people (like those who own houses), but it hasn't been good for everyone else. When inflation goes up, prices go up too — which means that buying power decreases over time as wages don't keep pace with price increases.
Cryptocurrencies like Bitcoin are designed to prevent this kind of scenario from happening. Unlike fiat currencies controlled by central banks, cryptocurrencies aren't subject to inflation because there's no central authority controlling their supply and demand.
Crypto is changing the game and hopefully, we see real change all over the world!