Nightmare Bitcoin Revolution? – Economist warns of “extreme inequality”.

A renowned economist fears that a Bitcoin triumph will “fuel social division”.

A far-reaching triumph of Bitcoin is not a pipe dream for every observer.

A popular meme, i.e. a viral joke, in the crypto community has long been describing a “horror scenario” in the event that Bitcoin becomes the global reserve currency in the future:

According to this, large investors in the Golden Profit market-leading cryptocurrency would automatically become the new upper class, while “nocoiners”, i.e. those who have not invested in Bitcoin until then, would be financially and socially excluded.

This not entirely serious narrative was first circulated on the social network Reddit a few years ago, with a “time traveller” claiming that Bitcoin would rise to a market value of US$1 million in the future.

The joke then took on a life of its own and achieved great popularity, so that there is now even a German short film about it

However, one economist is now warning that the meme could become reality if Bitcoin can actually become the world’s dominant currency at some point.

Jon Danielsson of the renowned London School of Economics argues in a related article that such a future would produce a “Bitcoin aristocracy”. An “extreme inequality” in the distribution of wealth would also “fuel social division and populism”. To this end, he explains:

“First of all, the current big investors would become the richest people in the world, having a position similar to kings and emperors in past centuries. They would literally own all the money in the world. They can buy anything they want. And there are only a few of them. Compared to the masses of people who have wealth today through mutual funds, shares or real estate, that would be a tiny group.”

The government would then necessarily have to decide whether to “protect or attack” this upper class. Whereas these people would have accumulated their wealth merely “by buying early”. They would never have made a real “contribution to society”, in contrast to entrepreneurs who create a certain added value through their companies.

However, Danielsson concludes that this future will never exist, because the violent price fluctuations of the market-leading cryptocurrency could never make it a true currency. In the long run, this “internal contradiction” would rather mean that Bitcoin would eventually “go to zero”.

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