An economist of the top University in London i.e. London school of economics argued that BTC rising price will increase inequality. Jon Danielsson, Director of the Systemic risk centre at LSE had published a column recently titled ” What happens if Bitcoin Succeeds?” Danielsson in his writing piece also said that most of the people will not want to live in a society where cryptocurrency succeeds.
” Danielsson also coined that the whales of crypto will become the wealthiest people, which will also lead to rivaling the kings and emperors that had ruled over the centuries”
Danielsson said Inequality on the Bitcoin blockchain is already out of control, According to market analytics site Glassnode found that nearly 2% of market network entities control 71.5 of all Bitcoin, thus the network is already far from principle of equality. And when the whales of BTC market will start liquidating their trillions what does that means for the rest of world, this will lead to extreme inequality and pumps social division and populism. after the liquidation of big whales small holders will come into threat and this will need government intervention, because in those situation either way there will be political or social instabilities and the economic condition will get worse.
Danielsson, also argues that if like this Bitcoin will continues to grow then BTC sooner or later will replaces the fiat money, leading to huge social change, those who own fiat will suffer and those who are a part of Bitcoin community will boom. He finishes by saying that right now Bitcoin is just a bubble and it makes sense to ride that bubble as long as possible. But the consequences of bitcoin will be perverse. So, “According to Danielsson the Cryptocurrencies will be disregarded long before they reach to such High values”.
What do you think????
Note- The link of actual piece of Danielsson is below.