- As US income inequality reaches a record high, many wonder how blockchain technology and bitcoin fits in the equation.
- Digital currencies have the potential to bridge the global wealth gap, hedge-fund chief Mark Yusko told Business Insider.
- Developing regions throughout Southeast Asia, Latin America, and Sub-Saharan Africa have had exposure to blockchain technology since 2017. Charity organizations that use cryptocurrencies are focused on helping people build credit, access loans without a bank account, and receive bitcoin dollars that turn into resources like clean water.
- This article is part of Business Insider’s ongoing series on Better Capitalism.
- Visit Business Insider’s homepage for more stories.
The mysterious nature of bitcoin has led to common misperceptions about its use, with many in the mainstream relegating it to the realm of hackers and gamers.
The history of cryptocurrency shows quite a different purpose: Bitcoin was actually created with the intention of bridging the global wealth gap. The domain name “bitcoin.org” was registered online in the midst of the Great Recession of 2008. Soon after, the mysterious and purported creator of bitcoin, Satoshi Nakamoto, released statements explaining the electronic cash-to-cash system was developed as a means to fight centralized currency manipulation.
Nevertheless, wealth inequality has become so drastic that many in the lower and middle classes can’t afford to own bitcoin dollars. Inequality in the US has reached a record high since the US Census started tracking it five decades ago, with the federal data showing evidence of a shrinking middle class.
Though the global economy continues to face substantial pressures, experts say the growing popularity of bitcoin might help return it to its intended use: fighting income inequality.
How bitcoin is helping to strengthen the middle class
What’s unique about bitcoin is that it functions on another network, one that’s a lot more transparent…