How can Bitcoin reduce global economic inequality?

[Kakmakr]

" Billionaire fortunes increased by 12 percent last year – or $2.5 billion a day - while the 3.8 billion people who make up the poorest half of humanity saw their wealth decline by 11 percent "  

" the number of billionaires has almost doubled since the financial crisis, with a new billionaire created every two days between 2017 and 2018 "

" Tax rates for wealthy individuals and corporations have also been cut dramatically. For example, the top rate of personal income tax in rich countries fell from 62 percent in 1970 to just 38 percent in 2013. The average rate in poor countries is just 28 percent. "

~ Average daily wage of workers in Africa = $5-50 per day! <South of the Sahara>

~ Money being hidden in offshore accounts = $7.6 Trillion.

Source : https://www.oxfam.org report.

How can Bitcoin help to reduce the global economic inequality? Please discuss possible solutions.   I was thinking of a few small contributions that Bitcoin can add, to help with this problem.

1. Cheap cross border micro payments for micro tasks. (Global tipping services)
2. Cheaper remittance services. (People working in 1st world countries, who wants to send money home to their families)
3. Lower global interest on loans. (Individual funded loans that compete with Banks)
4. New job opportunities (Crypto currency and Blockchain related)
5. New investment opportunities & tools for non-professional traders. <Less fees and no barrier to entry>
6. Hoarding will stimulate a increased saving culture.
7. A hedge against Hyperinflation. <Protect your wealth from your countries/governments bad decisions>

Please add more to this list.  


 

[Naida_BR]

Bitcoin and the whole blockchain industry offers a new way of globalization. It reduces inequality because it solves inefficiencies in the economic model that already exists. For example, the remote working model gives the opportunity to anyone that lives in countries with high unemployment rates to find a job remotely and make a living.

[webtricks]

1. Cheap cross border micro payments for micro tasks. (Global tipping services)
2. Cheaper remittance services. (People working in 1st world countries, who wants to send money home to their families)

Bitcoin is not as cheap remittance mode as we think. Whenever demand and price of Bitcoin increase, it leads to increase in volume of transactions. This is followed by huge leap in transaction fees. Back in Nov-Dec 17, BTC Fees shot up to $20-25. With such high fees Bitcoin can never contribute to these two factors provided its demand goes beyond saturating point.

[aoluain]

I understand the wealth gap globally is widening, the rich are getting richer
and the poor are getting poorer but it is difficult to make something from
nothing.

The gap is too wide to bridge across. The rich tend to be more educated
particularly in financial matters and have access to high end financial
advisors. Poor people dont have that.

I like points the points 1 to 7 in the OP but they are not going to help bridge
the divide, unfortunately.

I dont have any ideas as to what can be done.

[St4yInTh3D4rk]

1. Cheap cross border micro payments for micro tasks. (Global tipping services)
2. Cheaper remittance services. (People working in 1st world countries, who wants to send money home to their families)

Bitcoin is not as cheap remittance mode as we think. Whenever demand and price of Bitcoin increase, it leads to increase in volume of transactions. This is followed by huge leap in transaction fees. Back in Nov-Dec 17, BTC Fees shot up to $20-25. With such high fees Bitcoin can never contribute to these two factors provided its demand goes beyond saturating point.

Right if the bitcoin is the only crypto will be used by everyone but we have huge altcoins as well which may contributes here,OP might replace Bitcoin with crypto currencies then it all will become right.

[mu_enrico]

I want to add one more item, but it might be a controversial one. We could use bitcoin as a tool to get a cheaper source of fund, like crowdfunding and ICO. For you who studied finance, this "cost of token" might be something in the future, in addition to "cost of debt" and "cost of equity."

[dothebeats]

Might I add that due to speculation, bitcoin opened a new gate for new millionaires in the economic scene. Perhaps that is one of the least plausible reasons on how bitcoin can reduce wealth inequality between the rich and the poor, but certainly we can't rule that one out, especially how inflated the market became in 2017, turning the hopefuls of 2014-2016 who held to their coins through thick and thin into insta-rich individuals. Every bull run is an opportunity to close that gap, but only for those who are brave enough to hold through the toughest of times in bitcoin.

[akram143]

Bitcoin and the whole blockchain industry offers a new way of globalization. It reduces inequality because it solves inefficiencies in the economic model that already exists. For example, the remote working model gives the opportunity to anyone that lives in countries with high unemployment rates to find a job remotely and make a living.

Yes it is actually true we can choose the opportunity remotely by using the things like this that can promote ourself without any other help easily for our future that will definitely reduce the traits of people who are not employed still now.

[Indamuck]

Bitcoin will allow people to transfer money easily but it won't magically create equality across the world.  Wealth is created from capital and when you are in severe poverty it is nearly impossible to climb out.  There are a few success stories of rags to riches but don't let this fool you.  Survivorship bias has a huge affect in our media.

[argon76]

Increasingly re-reading people's opinions about Bitcoin, I am surprised. You are doing something incredible with bitcoin. As if bitcoin came to our world to save it. But it is not. These are just new technologies to replace the old ones. And bitcoin will not save about poverty until human greed disappears. But this will not happen.

[bitmover]

1. Cheap cross border micro payments for micro tasks. (Global tipping services)
2. Cheaper remittance services. (People working in 1st world countries, who wants to send money home to their families)
3. Lower global interest on loans. (Individual funded loans that compete with Banks)
4. New job opportunities (Crypto currency and Blockchain related)
5. New investment opportunities & tools for non-professional traders. <Less fees and no barrier to entry>
6. Hoarding will stimulate a increased saving culture.
7. A hedge against Hyperinflation. <Protect your wealth from your countries/governments bad decisions>

As I read somewhere in Twitter: bitcoin allows You to do the transactions banks say you can't do.

Remittance services are far too expensive and bureaucratic. Bitcoin will kill those remittance services, or at least reduced their price to a more competitive price (like 0.30usd for a Swift, instead of 45 USD)

[HODL2090]

Bitcoin does offer a whole new perspective and there are lots of possibilities.
The issue of tax is one which is constant in both sectors, governments can impose taxes on bitcoins and other cryptocurrencies, this makes it less decentralized.

But in bitcoin, very few hands holds larger amount of the total supply than the entire majority. Could this not also present a potential inequality?

[chaoscoinz]

" Billionaire fortunes increased by 12 percent last year – or $2.5 billion a day - while the 3.8 billion people who make up the poorest half of humanity saw their wealth decline by 11 percent "  

" the number of billionaires has almost doubled since the financial crisis, with a new billionaire created every two days between 2017 and 2018 "

" Tax rates for wealthy individuals and corporations have also been cut dramatically. For example, the top rate of personal income tax in rich countries fell from 62 percent in 1970 to just 38 percent in 2013. The average rate in poor countries is just 28 percent. "

~ Average daily wage of workers in Africa = $5-50 per day! <South of the Sahara>

~ Money being hidden in offshore accounts = $7.6 Trillion.

Source : https://www.oxfam.org report.

How can Bitcoin help to reduce the global economic inequality? Please discuss possible solutions.   I was thinking of a few small contributions that Bitcoin can add, to help with this problem.

1. Cheap cross border micro payments for micro tasks. (Global tipping services)
2. Cheaper remittance services. (People working in 1st world countries, who wants to send money home to their families)
3. Lower global interest on loans. (Individual funded loans that compete with Banks)
4. New job opportunities (Crypto currency and Blockchain relat ed)
5. New investment opportunities & tools for non-professional traders. <Less fees and no barrier to entry>
6. Hoarding will stimulate a increased saving culture.
7. A hedge against Hyperinflation. <Protect your wealth from your countries/governments bad decisions>

Please add more to this list.  

I don't think Bitcoin itself would work, but I think that there are many alternate cryptos currencies that would be a perfect medium for experimenting with a universal basic income implementation. Maybe they could start off within a small city or country, then if it is successful, they can easily scale it to any requisite accommodations.
   I like the hoarding aspect a lot, it adds a new spin on proof of stake. Everyday people can be taught how to earn while they learn. It would take a massive amount of planning though!

[Idrisu]

The global inequality is very high and I strongly believe that bitcoin can close the gap between this inequality.  It is decentralized and that means no nation has control over it and that means it is transparent and what a nation was able and keep will determine how that nation can go.

[Crypdon]

7. A hedge against Hyperinflation. <Protect your wealth from your countries/governments bad decisions>

This is the number one reason why bitcoin will help global inequality. The only way they can scam and embezzle their people is by using taxes to buy bitcoin, but that will all be on the public ledger.

8. Governments / banks can't close your account and take your money (like they did in india)

[deisik]

How can Bitcoin help to reduce the global economic inequality? Please discuss possible solutions.  I was thinking of a few small contributions that Bitcoin can add, to help with this problem

A short answer is, it can't

A long answer is, it can't because it remains a speculative asset, which basically means the only way you can purposefully use Bitcoin en masse is by buying it low and selling it high, i.e. engaging in speculation (or trading if you don't quite like the term I used). But in this case those who have deep pockets have an indisputable advantage before those who have only holes in their pockets. So Bitcoin can actually contribute to greater inequality or, at the very best, to moving wealth from wealthy hands into even wealthier ones

[BitHodler]

Every bull run is an opportunity to close that gap, but only for those who are brave enough to hold through the toughest of times in bitcoin.

Only an extreme minority of the average joes ends up banking on a bull run, while those who already have a bunch of wealth continue to wisely play this market and sell their expensive coins to dreamers around peak levels.

In other words, bull runs make sure the gap between the rich and the poor becomes larger and larger, and this just as easily applies to what happens in traditional markets. It's something that will never change I'm afraid.

I like how Warren Buffett refers to the stock market: The stock market is a device for transferring money from the patient to the impatient.

That quote perfectly describes the overall state within the crypto market, because that's exactly how things are here.

[Febo]

How can Bitcoin reduce global economic inequality?

By giving people stable currency and access to do with it whatever they want. Or at least a lot more as before. It also get them access to borrow cheap money.

[qiman]

I think Bitcoin can really engage the majority of the population because it has multiple digits after the full stop. This helps with micro payments, also micro credit and loans can easily be given to people in poorer countries trying to start up a small business and many have mobile phones, as opposed to computers, so at least with a mobile phone people can have access to decentralized banking facilities and credit that before would have never been open to them. Also it will help alleviate poverty if people can be paid in Bitcoin and can do their shopping with it in a daily basis. I think in general the technology behind Bitcoin can help build infrastructure for the poor and unbanked in ways that before in traditional banking were not available. I am very optimistic for a brighter future with Bitcoin for those outside of the banking system.

[Kakmakr]

A lot of people are using it at the moment to avoid paying taxes and this can also be seen as a method to increase your wealth, but this is highly controversial and not advisable at all. Bitcoin should never be used for tax evasion and the people doing that, is risking their total wealth in doing this. <Tax penalties/fines and even jail time, if they are caught>  

I also think the redistribution of wealth is so much easier & cheaper with Bitcoin, when rich people donate to global charities and less of that money goes to remittance services and Bank fees. <Global transfers>