Cryptocurrency achieved results in 2009 and is now gradually becoming the mainstream. It is rapidly transforming into a viable currency that anyone with an internet connection can use, regardless of its location or financial situation.
Experts predict that cryptocurrencies will soon surpass fiat currencies and become the preferred medium of exchange-possibly as early as 2030. What does this mean for those who are currently experiencing financial difficulties? Is it possible for cryptocurrency to solve this type of problem?
How will cryptocurrencies like Bitcoin affect the poor? This article will explore some of the reasons behind the current income inequality crisis in the United States.
U.S. income inequality
Income inequality in the United States means that 33.98 million people (that is, slightly more than 10%) live below the poverty line.
Causes of income inequality in the United States:
- Education: The variable ability of a person to obtain an education. Although it may be easy to obtain education in one region or country, it may be much more difficult in another region or country. In addition, factors such as race and class can also affect the chances of receiving education.
- Wealth Condensation: Most wealth is consumed by people who have become wealthy. In essence, only rich people will be richer.
- Technological growth: Technological advancement may make certain jobs obsolete, such as pickers in warehouses.
- Gender: The gender pay gap is one of the most famous examples of economic inequality, especially among single women trying to earn a living independently.
How will cryptocurrency help solve this problem?
So, with all the rampant wealth inequality happening, what kind of solutions can cryptocurrencies provide?
The main reason cryptocurrencies can solve wealth inequality is that they can help the middle class in two ways: by stabilizing the middle class and helping the lower class reach the middle class. They do this by helping people keep their hard-earned wealth.
Cryptocurrencies are much better than banks. Although you may be rejected because of a checking or savings account, cryptocurrency is very tolerant. In addition, you can also buy items on Bitcoin ATMs in some convenience stores or grocery stores.
In addition, due to the existence of the central bank, the legal currency is at risk of devaluation. However, this situation cannot happen with Bitcoin. The rules in the Bitcoin software limit the number to help the economically disadvantaged.
With more and more people in the world now having access to smartphones, cryptocurrencies can make it easier to reach new customers. Remember, all you need to buy and trade Bitcoin is a smartphone and internet connection.
Cryptocurrencies have made fantastic progress in Latin America. Everyone must have heard the news of El Salvador’s adoption of Bitcoin as its legal tender and national currency. But its success does not stop there. The country has partnered with digital wallet company Strike to help ensure the security of its financial infrastructure to meet the September deadline for officially adopting Bitcoin as its national currency. As a result, up to 70% of the population in El Salvador does not have a bank account, and people who are economically insecure now have the opportunity to save and spend freely.
What cryptocurrency does is give people hope: I hope they don’t have to live in poverty all their lives because they were born in the wrong socioeconomic class-they can still integrate into the world economy.
Predicting the future is never easy, but we believe that everyone should get rid of poverty. Furthermore, we believe that wealth not only belongs to economically privileged people and that cryptocurrency is a tool to push us towards a fair and equal world.