John Danielsson argues that Bitcoin’s continued growth will cause serious inequality in society and lead to a dystopian future.
An economist at one of London’s leading universities said that if bitcoin and other cryptocurrencies continue to rise in price, inequality in society will increase. Director of the Center for Systemic Risk at the London School of Economics, Jon Danielsson, published a column for the VoxEU Center for Economic and Policy Research titled “What Happens If Bitcoin Succeeds?”
Danielsson argues that most people would not want to live in a society where cryptocurrency is doing well, because the large holders of BTC, the “whales”, will become the richest people in the world, “competing with the kings and emperors who ruled empires in centuries past.” The economist believes that this will lead to even greater inequality and populism. Danielsson writes:
“When the big BTC holders start spending their trillions, what will that mean for all of us? We know that this extreme level of inequality is fueling social division and populism. Bitcoin’s whales will face a growing threat and the government will have to respond. It will defend or attack, it cannot be neutral. In any case, political and social instability will worsen. ”
Danielsson argues that if the price of bitcoin continues to rise and cryptocurrency replaces fiat money, society will change. Holders of fiat currencies will suffer and cryptocurrency investors will do well. But the consequences of Bitcoin’s success will be “vicious”.
According to Danielsson, cryptocurrencies will go into oblivion long before they become a serious force. He ends the article with the statement that bitcoin is just a bubble right now, and “it makes sense to enjoy its benefits as long as possible.”
As a reminder, according to a Glassnode study published in early February, BTC has become more evenly distributed between whales and retail investors.