Can Bitcoin Reduce the Global Wealth and Income Inequalities in 2022?

[Davidvictorson]

It is no longer news that the rich are getting richer and the poor are getting poorer. And it is not just happening in LMIC countries but even in developed nations. The wealth and income gap has increased. There's really no middle class anymore.

According to this report by the the World Inequality Lab,

Contemporary income and wealth inequalities are very large
An average adult individual earns PPP €16,700 (PPP USD23,380) per year in 2021, and the average adult owns €72,900 (USD102,600)1.1 These averages mask wide disparities both between and within countries. The richest 10% of the global population currently takes 52% of global income, whereas the poorest half of the population earns 8.5% of it. On average, an individual from the top 10% of the global income distribution earns €87,200 (USD122,100) per year, whereas an individual from the poorest half of the global income distribution makes €2,800 (USD3,920) per year (Figure 1).
Global wealth inequalities are even more pronounced than income inequalities. The poorest half of the global population barely owns any wealth at all, possessing just 2% of the total. In contrast, the richest 10% of the global population own 76% of all wealth. On average, the poorest half of the population owns PPP €2,900 per adult, i.e. USD4,100 and the top 10% own €550,900 (or USD771,300) on average.

In the country where I reside the prices of everything are skyrocketing but the income remains the same year to year. Is it still possible that in 2022 Bitcoin can help reduce this wealth and income inequality? Bearing in mind that most people were not early adopters.

[Mr.right85]

In the country where I reside the prices of everything are skyrocketing but the income remains the same year to year. Is it still possible that in 2022 Bitcoin can help reduce this wealth and income inequality? Bearing in mind that most people were not early adopters.

It's a hard knock of life that we live in. Inflation everywhere with price of goods steadily on the rise and we don't see workers salary or wages increased. Except for slightly in rare cases but not significantly.

Talking about bitcoin reducing wealth inequality that exists between the classes in our society with respect to social stratification. I would say, NO! Bitcoin might play a role in ensuring that individuals with certain skills becomes engaged and paid with BTC as a base currency but, that's in the event that you work or offer a skill in exchange for payment. Same could apply for working with fiat.

What we have to realise is, there is an equal opportunity in the crypto field and is basically based on who keys in. Should one party key in while the other doesn't, the individual investor enjoys the benefit it offers. Having both parties to key in, they enjoy as due too.
Hence, your ability to offer something, be it goods or skills could do this and not bitcoin itself. Bitcoin is for people of every status.

[Rruchi man]

Is it still possible that in 2022 Bitcoin can help reduce this wealth and income inequality? Bearing in mind that most people were not early adopters.

Early adopters or not, the wealth/income inequality can be reduced by crypto even this year if the people who are experiencing inequality have made smart investment choices with whatever finance they had on ground and bought the dip, or buy this dip.

But the hard truth is that most persons who are really facing this wave of harsh economic situation, barely have enough to feed, talk less of having enough for investment purpose. As a result many "not rich" persons may find it impossible to even buy bitcoins now the prices are low...so in conclusion, we may not experience much change in wealth/income inequality from bitcoins alone this year, there has to be a general improvement in the economy for real reduction in wealth/income inequality.

[hatshepsut93]

Bitcoin is probably increasing the inequality, because rich people and middle class can afford to invest into risky assets, while poor people can't afford to invest in anything, or are too risk averse. When I read posts that tell people to HODL and never sell their coins, I get the impression that people who make such comments don't know what true poverty is, when you have to borrow money from friends, family or neighbors just to buy food. So I would assume that Bitcoin community is dominated people who aren't considered poor. So when Bitcoin skyrockets, it's an example of "the rich get richer".

[Lanatsa]

Is it still possible that in 2022 Bitcoin can help reduce this wealth and income inequality? Bearing in mind that most people were not early adopters.

Early adopters or not, the wealth/income inequality can be reduced by crypto even this year if the people who are experiencing inequality have made smart investment choices with whatever finance they had on ground and bought the dip, or buy this dip.

But the hard truth is that most persons who are really facing this wave of harsh economic situation, barely have enough to feed, talk less of having enough for investment purpose. As a result many "not rich" persons may find it impossible to even buy bitcoins now the prices are low...so in conclusion, we may not experience much change in wealth/income inequality from bitcoins alone this year, there has to be a general improvement in the economy for real reduction in wealth/income inequality.

Equality could never happen on this cruel world on where only rich becomes even more richer and to those who are in middle could barely make out some huge investment not only limited to crypto but also
in other markets as well.

If general speaking, it could really solve out some few numbers of personal who could make their lives more convenient and easier in terms of finances but of course if they would able to get in
when the market is still on dips and it suddenly booms out.

We know that this isnt for everybody where only a few could really make out some significant amount of investment which could potentially changed their lives
and the majority would be still playing on that inequality that we are talking on here.

[Zlantann]

Bitcoin is probably increasing the inequality, because rich people and middle class can afford to invest into risky assets, while poor people can't afford to invest in anything, or are too risk averse. When I read posts that tell people to HODL and never sell their coins, I get the impression that people who make such comments don't know what true poverty is, when you have to borrow money from friends, family or neighbors just to buy food. So I would assume that Bitcoin community is dominated people who aren't considered poor. So when Bitcoin skyrockets, it's an example of "the rich get richer".

This is one of the most honest comment I have ever encountered. The poor are more concerned with satisfying their basic needs and not usually interested in investment. The high rate of inflation is making the currencies of most developing nation worthless, thereby reducing the purchasing and investment power of its inhabitants. The gap between the rich and the poor would keep widening until there is stability in the global economic space. But we cannot doubt the possibility of some few poor investors that would take every risk and suffer all forms of pain to ensure they invest in Bitcoin. One of my neighbors had to home-school their children to ensure they invest with the school fee savings.   

[palle11]

It is looking as the inequality in the economy is increasing. Before this time I felt it will take care of that because of the investment opportunities that bitcoin is having but the investment isn't that going straight especially that the price fall without a definite price that it will get down to. Investors don't know if the bear is over or not and for the fear of losing greater amount of their investment, they sell in fear and taking some loses that affect the inequality state already but the rich can afford holding on because of other sources of income and wait for bitcoin bull and get increased profit at ATH. For profiting in bitcoin, you have to have a longtime plan of which the rich can afford but the poor can't easily and this keep widing the inequality gap.

[Poker Player]

It is no longer news that the rich are getting richer and the poor are getting poorer.

That is not news because it is pure political propaganda, not news. The world is more economically equal today than it was 100 years ago and much more equal than it was 1000 years ago.

And what the propaganda does not count is that someone with a low income, especially in first world countries, lives much better than their ancestors, but by far.

All this propaganda seeks to make people willingly accept that the solution to the problem is for politicians to make socialist policies, if not outright communist.

[mu_enrico]

It is no longer news that the rich are getting richer and the poor are getting poorer

Why? What's the reason "the rich are getting richer and the poor are getting poorer?"
Is it because of the economic system? Monetary system? Or because the rich use their money better and have more opportunities?

In the country where I reside the prices of everything are skyrocketing but the income remains the same year to year. Is it still possible that in 2022 Bitcoin can help reduce this wealth and income inequality? Bearing in mind that most people were not early adopters.

How a simple BTC can solve this problem? Do people magically create wealth after installing electrum?

You see.. a complex problem needs a complex solution.

[Text]

For me, Bitcoin cannot reduce inequality because it is not the direct answer to poverty.  But for those who better understand its usefulness, there will be a change in their lives if the decisions are made according to them.  The poor cannot buy it because these so-called poor have only enough income for basic daily needs, sometimes or often even sorely lacking.

A citizen will only remain poor if he accepts that he is only up to that point, there are many more ways to get out.  So the opportunity to gain knowledge of Bitcoin should not be wasted especially if it is within reach.  But the government must also do something in their constituencies to make it a priority to help those who are marginalized because they are the ones who need it and address their grievances.

[avikz]

I don't think bitcoin can help here to reduce the wealth inequality in any way. It will always remain the same. Think about it from a different perspective.

Riches can buy high end minkng rigs and can pay for maintaining the mining facility. On the other hand, an average Joe won't even think of mining due to the high setup cost. So even in bitcoin market, inequality exists. It can't solve global issues.

[laredo7mm]

Is it still possible that in 2022 Bitcoin can help reduce this wealth and income inequality? Bearing in mind that most people were not early adopters.

Early adopters or not, the wealth/income inequality can be reduced by crypto even this year if the people who are experiencing inequality have made smart investment choices with whatever finance they had on ground and bought the dip, or buy this dip.

But the hard truth is that most persons who are really facing this wave of harsh economic situation, barely have enough to feed, talk less of having enough for investment purpose. As a result many "not rich" persons may find it impossible to even buy bitcoins now the prices are low...so in conclusion, we may not experience much change in wealth/income inequality from bitcoins alone this year, there has to be a general improvement in the economy for real reduction in wealth/income inequality.

Bitcoin can be a relief asset to overcome inflation. But the way it has been dealing with the market most of the BTC will be in hands of big corporations and few individuals. This will worsen the inequality even more. Some people made luck in BTC by joining early but before the mass adoption, 99% of people on the plant will not be able to buy 1 BTC from the market. Its price is already unreachable price for most people.

[Silberman]

It is no longer news that the rich are getting richer and the poor are getting poorer. And it is not just happening in LMIC countries but even in developed nations. The wealth and income gap has increased. There's really no middle class anymore.

According to this report by the the World Inequality Lab,

Contemporary income and wealth inequalities are very large
An average adult individual earns PPP €16,700 (PPP USD23,380) per year in 2021, and the average adult owns €72,900 (USD102,600)1.1 These averages mask wide disparities both between and within countries. The richest 10% of the global population currently takes 52% of global income, whereas the poorest half of the population earns 8.5% of it. On average, an individual from the top 10% of the global income distribution earns €87,200 (USD122,100) per year, whereas an individual from the poorest half of the global income distribution makes €2,800 (USD3,920) per year (Figure 1).
Global wealth inequalities are even more pronounced than income inequalities. The poorest half of the global population barely owns any wealth at all, possessing just 2% of the total. In contrast, the richest 10% of the global population own 76% of all wealth. On average, the poorest half of the population owns PPP €2,900 per adult, i.e. USD4,100 and the top 10% own €550,900 (or USD771,300) on average.

In the country where I reside the prices of everything are skyrocketing but the income remains the same year to year. Is it still possible that in 2022 Bitcoin can help reduce this wealth and income inequality? Bearing in mind that most people were not early adopters.

Bitcoin was never designed with that intent, bitcoin is just a tool which allows us to exchange value over long distances without the need of a bank or a government in the middle, it is a revolutionary concept but it is not going to help to solve income inequality or anything like that, the only way to do that is with education programs and through companies which offer jobs which pay fairly to their employees, and even then there will always be some level of inequality as there are people which are simply better at earning money than others.

[mindrust]

I don't think it is bitcoin's duty to bring justice to the world. Bitcoin isn't about that. Bitcoin is about financial freedom, being your own bank. Moving, spending money without needing a permission from an authority. Inequalities will always happen and it has nothing to with bitcoin. It is just how the world works. Some people are rich and some are poor. This will never change and it don't have to change. If everybody had the same amount of riches, we would be living in communism.

Bitcoin isn't a political tool. It only needs to work as a network and that's it.

[fiulpro]

Honestly I think what bitcoins can do is take the higher middle class to the rich class which means that they do have enough money to invest in a currency like bitcoins but for people who are either lower Middle class or poor they won't be able to benefit from it because at the end of the day they won't have enough to invest and loose an well which also means that it is adequate for the people who are able to take the losses !! Just because they are not early adopters the negative influences are much more worse for the moment therefore I think there can only be few chances of them being able to push the money market.

[el kaka22]

I do not think that bitcoin was created to reduce the wealth gap. I mean the idea is to create a decentralized and fair playing field, which means that yes there is a chance that people who screw up at the top, will go down, and people who did awesome at the bottom will go up.

However, that doesn't mean that it has to happen, it could be rich getting richer thanks to bitcoin as well, and poor staying poor because the returns are not gigantic to turn your few hundred into tens of millions of dollars, not anymore at least. Which is why I believe that it is definitely better method than fiat, but not the purpose and since it is not the end goal, it won't probably be a focus on anyone.

[naira]

Bitcoin is probably increasing the inequality, because rich people and middle class can afford to invest into risky assets, while poor people can't afford to invest in anything, or are too risk averse. When I read posts that tell people to HODL and never sell their coins, I get the impression that people who make such comments don't know what true poverty is, when you have to borrow money from friends, family or neighbors just to buy food. So I would assume that Bitcoin community is dominated people who aren't considered poor. So when Bitcoin skyrockets, it's an example of "the rich get richer".

This is one of the most honest comment I have ever encountered. The poor are more concerned with satisfying their basic needs and not usually interested in investment. The high rate of inflation is making the currencies of most developing nation worthless, thereby reducing the purchasing and investment power of its inhabitants. The gap between the rich and the poor would keep widening until there is stability in the global economic space. But we cannot doubt the possibility of some few poor investors that would take every risk and suffer all forms of pain to ensure they invest in Bitcoin. One of my neighbors had to home-school their children to ensure they invest with the school fee savings.   

Well, honestly that's what it looks like now and for a long time. There is no time for them to take care of the investment world when the fulfillment of their needs is still very lacking and they have so many basic needs that must be obtained immediately. In fact, in the field, we see this kind of phenomenon, where the boundaries of equality are completely transparent. I'm observing it from the perspective of the residential area. The paradigm of society is reluctant to recognize Bitcoin investment because of the uncertain price, volatility and risk and there is no guarantee that they will completely survive the market crash.

[Gyfts]

It could but it probably won't because of the reluctance for the lower class to throw away their government's currency in support of Bitcoin. I do not foresee impoverished countries using Bitcoin and this is usually where the income inequality exists. Government corruption/lack of education are two of the leading factors of reduced wealth in any single country and Bitcoin is not going to solve a broken democracy through inherent use alone. It may serve as part of the solution, though.

[TheNineClub]

No it can't. It can't solve such complex, intricate and interwoven economic and social problems that have been around for probably the whole of human history. It can be a part of the solution, but definatelly not the solution itself. It's a tool, not the answer.

[Johnyz]

No it can't. It can't solve such complex, intricate and interwoven economic and social problems that have been around for probably the whole of human history. It can be a part of the solution, but definatelly not the solution itself. It's a tool, not the answer.

Definitely, BTC is not invented for this because the purpose of BTC is actually against the government and that could affect the economy but with the current situation that we are into, the income inequalities can’t still be solve. BTC is not for everyone, only those who understand this can at least have the chance to make their life better, it will always be our choice. BTC is a good alternative though, adoption might also increase in the future.