A disconcerting report by Oxfam shows just how far the wealth gap has grown in the past decade. We don’t know much about the founder (or founders) of Bitcoin — Satoshi Nakamoto — as he pretty much disappeared... More falls into a growing group of billionaires, with a current net worth estimated to be $9 billion.
Oxfam, a confederation of charitable organizations that are working towards eliminating poverty, released a startling report concluding that the 2,153 billionaires in the world are as rich as half of the world’s entire population.
The annual report provides a lot of descriptive conclusions about the state of financial inequality in the world, a concern that has been a larger talking point in political debates and country policy. According to the Oxfam report, billionaire wealth has increased by 7.4% since 2009, and the top 500 have cumulatively obtained $1.2 trillion in 2019.
Oxfam itself is testing a stablecoin solution using the DAI cryptocurrency. The non-profit, along with Ethereum startup Consensys and tech company Sempo, piloted a card system in the villages of Pango and Mele Maat on the island of Efate. Locals were given tap and pay cards that were pre-loaded with $50 worth of DAI, which could then be used at stores. The sentiment was positive following the trial, which hints at further collaborations.
How Bad is Wealth Inequality?
The truth is, inequality has only been getting worse, and several detailed reports point towards the increasing tendency for wealth to be accumulated among a few.
For one thing, inflation and productivity hours have steadily risen since the 1970s — but the minimum wage and amount of pay have not. Similarly, in the United States at least, such expenses as housing and college tuition have increased dramatically over the past few decades, while the number of working hours and minimum wage have not been adjusted to match.
The United States economy is typically exemplified to highlight the problems of inequality, but Europe has similar problems, though milder. The top 10% in Germany own nearly two-thirds of wealth, while the United Kingdom shows more poorly than the US in terms of economic class mobility.
Naturally, the stark conclusions have sparked outrage at the way the world operates, which makes the need for a more democratic and decentralized currency all the more pressing.
Satoshi Nakamoto Created Bitcoin to Overcome Financial Inequality
In a time where financial inequality only seems to be growing, Bitcoin and other cryptocurrencies stand out as a means to bring some balance into the economy.
Indeed, Bitcoin was specifically motivated with the desire to make economic systems fairer. Satoshi Nakamoto famously embedded into the genesis block a headline from the Times that referred to the bailout of banks following the 2008 economic recession.
Satoshi Nakamoto himself is one of the billionaires on the list, as he, she, or they hold(s) 1 million BTC, estimated to be worth around $9 billion. At Bitcoin’s peak, Nakamoto would have been worth $19 billion, ranking them the 44th richest person in the world.
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