Last month we covered a story on the many classes within the cryptocurrency industry that seem to be challenging the democratic, working person’s nature that was weaved into the original architecture of Bitcoin, as established by the mysterious Satoshi Nakamoto, whoever that may be. During this, we highlighted a number of points that we are going to continue to elaborate on today, firstly:
“When we observe the cryptosphere today, it’s clear that this design has had quite the opposite effect, if anything, Bitcoin and cryptocurrencies have only given power back to the elite, reinforcing the class hierarchy that currently allows banks and governments to get away with so much.”
This point still rings true, as a matter of fact the sheer financial value of cryptocurrency, Bitcoin included, is so vast that it’s almost impossible for a hierarchy to not form as a result of it. Because of the huge volumes that can be moved around within crypto, power is not evenly distributed across the community, though we have to remember that when it comes to matters of finance, this is never the case. FIAT currency is exactly the same, so, perhaps this distribution of power issue is one that will be addressed during Bitcoins later years, when the mainstream finally get hold of it?
To further this point:
“We also have to address decentralisation here, many cryptocurrencies are owned in large quantities by few investors, this means that technically those holders have the power to manipulate the market. The only way you can do this is by having a lot of money to invest in the first place, once again taking the power out of the hands of the lower classes and reinforcing the position of the upper classes within the industry.”
Class systems ensure that power remains in the hands of those that already have the most. A redistribution of power could come with the redistribution of wealth, so we ask, will this come with the Bitcoin revolution?
There’s only so much crypto to go round, so, thankfully, when the masses start to buy it and dip their toes into investment, decentralisation will increase through the spread of that cryptocurrency. Now, it seems that crypto is a bit of a dog eat dog world, but actually in the long run, this issue should phase out. The class conundrum within crypto is but a temporary part that is almost essential for its growth. Bitcoin adoption on the other hand should see this right, that’s what we all hope for at the very least!