Director of the System Risk Center of the London School of Economics, John Danielsson, published an article for the Center for Economic and Political Studies from Voxeu. The name of the material is "What will happen if Bitcoin succeed?" In it, the expert stated that most people clearly should not want to live in a society where the cryptocurrency will occupy a dominant place in the field of economics. And all because its major holders will become the most rich people in the world, "akin to the kings and emperors who ruled the world in past centuries." As a result, all this will lead to even greater inequality and populism, Danielsson is sure. We tell about his point of view.
Note that fantasies on the future of the future, in which cryptocurrencies will become one of the most popular payment tools and tools for saving value, usually positive. This is due to the features of assets that work on the battery pack. Yet the latter are transparent, which means to explore the data in them can anyone. In theory, this can improve the situation with corruption around the world, as well as increase the efficiency of government bodies.
In addition, new projects from the decentralized finance industry will provide services to users on equal terms - regardless of their social status or salary size. In general, we can say that a positive outlook on the situation in the world, where cryptocurrencies will become a massive phenomenon, is the norm.
However, the representative of the London School of Economics does not think so. And that's why.
Bitcoin risks in the future
It is important to note that the current situation in the cryptocurrency industry coincides with the description of the expert, since the distribution of funds in the Bitcoin network is far from equality. According to the analytical platform GlassNode, about 2 percent of cryptocurrency owners hold 71.5 percent of all bitcoins. In the hands of "whales" - that is, owners from 1000 to 5000 BTC - there are 18.4 percent of all coins in circulation or 3.43 million bitcoins on an impressive 127 billion dollars.
More large investors under control are 13.3 percent of all bitcoins, that is, about $ 92 billion in the first cryptocurrency. These market players, according to the technical director of the company Rafael Schulze-Kraft, "most likely are institutions, funds, over-the-counter platforms and other state organizations."
However, it is important not to forget that anyone who ten years ago put even an insignificant amount of money and retained his coins, now it is extremely rich. And examples of earnings on a crypt occur in a variety of niches. For example, on the eve I learned how the Pizza deliver received 5 dollar tips in the form of Bitcoin in December 2013. He managed to keep cryptocurrency for more than seven years and now received about 400 dollars.
Obviously, if investors purposefully invested funds in BTC and stored cryptocurrency for many years, they earned much more.
If the price increase in Bitcoin will continue at the same speed as before, soon in dollar equivalent, these people will have enough resources for large market manipulations. This is what Danielsson writes in his publication. A replica brings Decrypt.
Note that this is not the first warning to cryptocurrency investors. At the end of February of this year, billionaire Bill Gates advised Bitcoins to be careful - especially if they have less money than Ilona Mask. Thus, he hinted on the possibility of manipulations in a niche after large investors came to her.
Danielsson claims that if the price of BTC will continue to grow, and the cryptocurrency itself will then replace paper money, society will change. Those who own ordinary currencies will suffer, while those who participate in the cryptogonka will succeed. But the "success of Bitcoin" may not even take place, the expert is sure. In this case, major world organizations simply will not allow its possible dominance in the world.
We believe that this argument against popularization cryptocurrency is quite weak. Yet the inequality in the income and state of people always existed - and continues to do it now. Therefore, in advance to blame blockchas-assets in the fact that they will exacerbate the position of people at least dishonest.
Especially unfair to talk about the like for cryptocurrency, taking into account their advantages. Still, the transparent blockchain is really able to improve the situation in many areas - since the healthcare and ending the sphere of finance.
What do you think about this? Share your opinion in our cryptocat of millionaires. There are also other important topics related to the blocking-assets industry.
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