Inequalities increased due to current cryptocurrencies

[Rakesh Reddy]

What did you achieve due to crypto currencies?

The crypto currencies supposed to open the market and reduce the wealth inequalities. The poor nations are not getting their fair chance of mining due to lack of availability of hardware and energy. So Top 10 Bitcoin holders are still top 10 wealthy countries. Nothing has changed due to bitcoin or other altcoins. I am based in India and forget bitcoin we can't even get to have 24hours regular power supply to my home. And to the farm (not the mining farm the agriculture farm where we get our daily bread ) we can only afford to have 7h power supply to get the borewells working.

How come some algorithm that has been running on a wealthy computer affecting my bread every day(indirectly)? There are even much poorer countries where they don't even have basic computers and proper internet connectivity. The crypto supposed to be accessible(for mining) to everyone in the world( especially the poor ). If you look at the all the poor nations the major problems they have are revolving around the money. Countries are getting poorer because they are not managing the money properly. Their reserve banks could not control inflation. This is where our crypto supposed to help. But current cryptos are not especially focused on this global cause instead all the coins favors the rich nations

Problems from mining:

Energy:
I ran my laptop for for few Raven coins and I see how much my cpu fan is struggling to control the cpu temperature. It is a lot of energy for a simple(brut force) problem solving. I see a post recently that for every bitcoin it is generating the waste that is equal to 2 iphones. It is not just efficient

Hardware availability:
We made computers to connect and help people. Not to run a dumb program all day. This is definitely not efficient.

Favoring the wealthy:
Just to get one coin I have to spend lot of time in the pool. If my internet connectivity is slow I am done. There are some people who has better hash rate just by buying extra hardware. This is purely favoring rich. I can't afford to have expensive hardware for mining

Coin distribution:
Miners are getting coins based on their hash rate. If I am a miner with less hash rate I can't get any coin. The system should also consider the time factor while distributing the coins. If a miner who was mining for long time with a low hash rate should be given high priority than a person who just got a coin. Everyone should be given chance to own coins

Complexity of POW algorithms:
Complexity is getting increased for all coins as they get more miners and coins. This will further increase mining time and energy costs. I mean at what cost you want to increase the complexity. Since there are no regulations on this everyone follow this inefficient path . Crypto designers please consider the environmental destruction when you design the coin. We should definitely have some guidelines and regulations

Fortunately there is some work I see in this area but more need to be done.

I would like to work on a new alt coin to overcome above difficulties. If you are interested please IM me

I am just a normal developer and not working for any fintec company. My aim is to just bring the crypto to the poor. What I want to do is below

Think coin mining is similar to Gold mining. In the olden days you don't know where the gold is exactly and you kind of dig everywhere. So initially you will find gold on top and you collect all gold from top. After you finish at the top now you need to dig deeper. When you dig deeper it is very hard to get the gold out and there is also more environmental destruction. Current bitcoin mining situation is like this. Since we are going deeper it is required to have specialized hardware

I want to change this mining like this
All of the gold that exists is on the top. The system will tell the miners where and when to mine. So the miners near to the location of mine will mine in their own given time frame. The other miners will wait for their turn to come. This way we can avoid inefficient mining. Since all coins exists in the top layer of the soil we can even mine with normal tools. In this case a normal Mobile phones can also mine.

How I wanted to achieve;
I don't want to start from the wheel. Fork Bitcoin and make a new alt coin. We can keep the original POW algorithm but I may have some challenges

I need to decrease the algorithm complexity without compromising the security. I probably need to push this function somehow to P2P Networking
I need to find a efficient way of optimizing algorithm for mobile hardware
For efficient mining only certain miners are allowed  to mine at a specified time- not sure how I can achieve this. One idea is that by looking at the miner key the system can say you are allowed to mine for the next block or not. This can be achieved by checking the percentage of match between the current key with the miner key. But Miners can hack this system by creating multiple miner keys

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[pooya87]

The crypto currencies supposed to open the market and reduce the wealth inequalities.

Wrong.
Bitcoin, as the first and only cryptocurrency worthy of the name, was created so that humanity has access to a worldwide deflationary currency that can not be censored due to its decentralized nature.
A handful of cryptocurrencies tried to stick to those ethos while majority of them were created to be pumped and dumped and satisfy the gambling habits of the masses.

The poor nations are not getting their fair chance of mining due to lack of availability of hardware and energy.

Wrong.
ASICs can and are being shipped to anywhere in the world and a lot of third world countries are currently leading the low electricity/energy/living/labor costs and over the past couple of years they are increasing their share of the total hashrate.
In any case as I mentioned earlier bitcoin wasn't created to let people only make money from it, whether by investment or mining.

So Top 10 Bitcoin holders are still top 10 wealthy countries.

Wrong.
You simply have no way of knowing who the "top 10 bitcoin holders" are.

The crypto supposed to be accessible(for mining) to everyone in the world( especially the poor ).

Wrong.
As I said before bitcoin (by extension any altcoin that follows the same ethos) is supposed to be accessible for usage as a currency for anyone regardless of their wealth.

~ all the poor nations~Their reserve banks could not control inflation.

Developed countries can not control their inflation either.

This is where our crypto supposed to help.

Wrong.

I would like to work on a new alt coin to overcome above difficulties. If you are interested please IM me

In other words you, like tens of thousands of other shitcoin creators, invented some imaginary issues and then pretended to be solving them.

In this case a normal Mobile phones can also mine.

Phones aren't designed or meant to be used excessively which is a requirement for mining.
Additionally when you focus on phones you are re-introducing worse problems as anybody on a phone will be at a disadvantage compared to anyone on a PC with a decent hardware!

I don't want to start from the wheel. Fork Bitcoin and make a new alt coin.

This is the worst thing the altcoin devs who don't understand the technology do. That is why we have so many copycat coins referred to as shitcoins.

For efficient mining only certain miners are allowed  to mine at a specified time- not sure how I can achieve this. One idea is that by looking at the miner key the system can say you are allowed to mine for the next block or not. This can be achieved by checking the percentage of match between the current key with the miner key. But Miners can hack this system by creating multiple miner keys

Exactly.
Whatever you do, the imaginary problems you described above will exist. A "rich" person can acquire more "shares" in the mining scheme than anybody else.

[hugeblack]

Unless the educational culture changes about money, there will be no income equality or the spread of the middle class.
Bitcoin was basically against inflation, so everyone who follows Bitcoin and learns will know that this currency has value, and therefore small investments such as $100 can achieve a fortune within 10 years.
Bitcoin and other tools are better than paper money, which loses its value over time, while the opposite happens due to increased demand and a decrease in the quantity supplied.

[SFR10]

I am based in India and forget bitcoin we can't even get to have 24hours regular power supply to my home.

You're probably telling the truth, but I'm pretty sure I've seen a couple of miners ^{[based in India]} selling their rigs a few months back ^{[I don't think what you're experiencing represents all parts of India]}.

If my internet connectivity is slow I am done.

You're wrong!
The amount of network bandwidth that's being used in mining operations is actually quite insignificant ^{[a bad internet connection "might" lead to getting more invalid/rejected shares, but even with a good connection, you'd still get some of those from time to time]}.
^{- In other words, all you need is a reliable connection, as opposed to a high-speed one.}

I can't afford to have expensive hardware for mining

Nobody is forcing you to buy those.

The system should also consider the time factor while distributing the coins. If a miner who was mining for long time with a low hash rate should be given high priority than a person who just got a coin.

What you just described there is exactly what most corrupt government officials do! They do little to nothing and still get paid ridiculous amounts for something that they didn't even do.
^{- Hopefully, I was able to clearly point out the flaw in your system.}

[zanezane]

Unless the educational culture changes about money, there will be no income equality or the spread of the middle class.
Bitcoin was basically against inflation, so everyone who follows Bitcoin and learns will know that this currency has value, and therefore small investments such as $100 can achieve a fortune within 10 years.
Bitcoin and other tools are better than paper money, which loses its value over time, while the opposite happens due to increased demand and a decrease in the quantity supplied.

Income equality won't happen because we value the time spent on the craft to make a better pay, I mean I wouldn't want to make money that is equal to a janitor if I am a doctor that has spent 8 years or so studying and memorizing stuff and deal with death on a daily basis.

[hatshepsut93]

Bitcoin was not created to solve inequality. Crypto also can't really contribute to inequality because of how small it is. The market cap of all coins is $2 trillion, this is nothing compared to the sum of all assets in the world.

The only way crypto creates inequality is when poor people invest in altcoins and hodl them hoping to become rich quick, only to witness the price go down over a few years while the creators of an altcoin have pocketed millions and quietly disappeared.

[swogerino]

I don't think Bitcoin has created inequalities in the world,what it did is that it improved many people lives throughout the planet,including mine by the way.I started mining in 2016 and I am happy that did so because in the pandemic I kept using Bitcoins which I had as store of value for catastrophic events like the pandemic,there were very difficult months of March 2020-December 2020 where most businesses were closed including the one I work for and I only fed my family with cryptos that I had stored hoping for better days (increased price).Like me I think many people in different parts of the world were helped in part by Bitcoin and cryptos in general during the pandemic.

[Ekeleboy]

I don't think there will ever be equality. It is not because of cryptocurrencies that inequalities increases and it won't reduce because of it.
It's just what it is.

[Darker45]

You are bound to be frustrated if you assign a lot of responsibilities to Bitcoin. Bitcoin is supposed to do this and that, Bitcoin is expected to solve this and that, Bitcoin should fix this and that, blah blah blah.

Perhaps we need to realize that if poverty, inequality, lack of basic services, and so on continue to exist in the world, it is not because Bitcoin failed to do its job. It is because we failed to do our job. In the first place, it is not Bitcoin's job to solve inequality and poverty. You simply cannot condemn Bitcoin for failing to do what it is not expected to do.

[DapanasFruit]

You are bound to be frustrated if you assign a lot of responsibilities to Bitcoin. Bitcoin is supposed to do this and that, Bitcoin is expected to solve this and that, Bitcoin should fix this and that, blah blah blah. Perhaps we need to realize that if poverty, inequality, lack of basic services, and so on continue to exist in the world, it is not because Bitcoin failed to do its job. It is because we failed to do our job. In the first place, it is not Bitcoin's job to solve inequality and poverty. You simply cannot condemn Bitcoin for failing to do what it is not expected to do.

While I do admire people who have the vision that the whole world can be a lot fairer to live and so that poverty and inequality can be reduced or even purged from existing, the problems of humanity have been here since time immemorial that it will not take just a single factor for them to be solved. Bitcoin is surely not designed to solved these perennial problems. And even if we will distribute all the Bitcoin available to all people, nothing can really be changed. 

[tranthidung]

If all Bitcoin is distributed equally to all 18+ people on Earth, what will happen after that distribution?

Months later, it will be changed hands and we will see whales collect most of Bitcoin again. You might think it is impossible but it is the fact. In reality, 80% wealth belong to 20% richest people.

It is how the world works, in all aspect. The Pareto principle is right in many aspects, and it is not only applicable for Bitcoin.

• Pareto principle and Bitcoin owners
• Willy Woo's discoveries
• Trends in income and wealth inequality

[Hydrogen]

Although venezuela is known as a poor country. The caracas dam once provided free electricity which venezuelans used to mine bitcoin. This was years ago btw when hash rates were lower. It could be more worthwhile for poorer miners to try to subsidize or distribute their electricity costs, rather than approach from an angle of mining algorithm adjustment.

In thinking about alternative ways to generate power for crypto mining. I've wondered if steam engines could be better suited to the role than solar or wind. That could be something that is worth looking into.

Golf as a sport, isn't something I'm a fan of. But they do have a handicap system, which attempts to give less skilled players a chance of playing competitively with skilled players on the course. Something similar could be applied to a mining algorithm. Where miners with low hash rates would be given a boost, some type of advantage which would make them more competitive with those who have a higher hash rate. That could be the approach to take with a token or coin intended to benefit lower end miners.

[cr1776]

What did you achieve due to crypto currencies?

The crypto currencies supposed to open the market and reduce the wealth inequalities. The poor nations are not getting their fair chance of mining due to lack of availability of hardware and energy.
...

Everyone has had a fair chance to get involved.  It has been open from the beginning.

However, instead of blaming someone else, one should take a look at the reasons that "poor nations" are poor.  It is about the choices of (some of) the people. 

When you elect a group that doesn't believe in freedom, the rule of law, stability, or property rights you end up with a country that can't compete.  When you elect a group that believes that envy, division and hate are the means to get and maintain power (e.g. the current administration in Washington DC), you end up driving people to somewhere that believes in equality, liberty, and the rule of law.  In short, what you end with is countries that can't compete (the US eventually if it drives business from it with high corporate taxes) or destroy themselves (Venezuela for example). 

As I said, it is about choices, and the reason there is inequality is because of the choices that have been made and the consequences of those choices.

And it as been said, but bitcoin was never about "reduc[ing] wealth inequalities."  It has been about protecting people from the kind of people - socialists, communists, fascists, authoritarians and totalitarians - who cause wealth inequality and the destruction of people and countries the world over. 

[bixiiMaphi321]

Cryptocurrencies open, we all have a fair chance to participate.
The reasons for inequality can be related to many factors, but the most common include: education, wealth, technological development...
The main reason cryptocurrencies are seen as the solution to financial inequality is that they can help strengthen the middle class in two ways: stabilizing and making it easier for those with lower incomes to access them. close. Accordingly, helping people to hold onto wealth that was previously difficult for them to obtain. What cryptocurrencies do is give people hope: hope that they don't have to live in poverty all their lives just because they were born into a low socioeconomic class and they can still integrate. world economy.

[xSkylarx]

I don't think so, the gap between poor and the rich just got wider, and it's coincidental that cryptocurrency is booming so we tend to try and make sense of things and connect things that don't have any connection at all.

However, because they all have money, rich people still have a significant advantage when it comes to investing. However, when it comes to overcoming adversity and thinking strategically, I believe the poor still have an advantage because they are self-sufficient. The good example was me, back in 2016, I really tried to make money online for a year, and at that point, I gave up, but then crypto came along, and it was the best and greatest thing I'd ever done because almost all of the methods online require capital, but when I started in crypto, I had nothing, so I just earned money and rolled it until I made a profit.

[wiss19]

Coin distribution:
Miners are getting coins based on their hash rate. If I am a miner with less hash rate I can't get any coin. The system should also consider the time factor while distributing the coins. If a miner who was mining for long time with a low hash rate should be given high priority than a person who just got a coin. Everyone should be given chance to own coins

In the area of coin distribution, I think most miners now have to fix themselves under big crypto mining farms or groups to be able to increase their hashrate and earn something, because if you try to do it alone you won’t be able to achieve anything.

Mining is no longer as it used to be when cryptocurrency came out newly; like years back when you can just set up your computer in your room and buy a little miner to mine BTC for as much as you want, this time around is completely different, you will have to invest more and more money. And when something has to do with money, you know for sure that it is mostly going to favor the rich people.

[pinggoki]

In the first place, bitcoin wasn't made to earn profits. Satoshi made it clear that they created the coin to act as an effective replacement to the otherwise capitalist-driven and severely flawed currency system of the fiat. How we are profiting from investing in cryptocurrencies nowadays is but a miracle and a coincidence, but then again one can argue the dev(s) behind bitcoin may have this in mind already ever since the conception, but I digress.

Saw that you also talked about the waste that mining a single bitcoin would create, but you have to remember that ASICS are now pretty much rampant and accessible, not to mention that most large-scale bitcoin mining rigs out there uses efficient and cleaner ways to create electricity like biomass, solar-powered-devices, to name a few.

I don't think so, the gap between poor and the rich just got wider, and it's coincidental that cryptocurrency is booming so we tend to try and make sense of things and connect things that don't have any connection at all.

This has been going on even before the conception of bitcoin, if anything, bitcoin became the mediator between these two sectors as it allowed a good number of impoverished people to live a much more desirable life. Which they wouldn't be able to enjoy otherwise if not for bitcoin. With these things in mind, the discussion of whether we should demonize money and bitcoin altogether should be over.

[A BLackPearl]

Encrypted currency can help you get wealth, but will make everyone lose some money. There are a lot of ways to get wealth. Encrypted currency is relatively fast. The fact is that encrypted currency will make some people change more money.