Massachusetts Senator Elizabeth Warren expressed the opinion that cryptocurrencies will not solve the problem of the rich and the poor, since 1% of “whales” control most of the digital asset market.
Elizabeth Warren made this announcement in response to a Wall Street Journal article claiming that only 1% of all cryptocurrency holders control most of the market. Citing a report from the National Bureau of Economic Research, the author of the article notes that 5 million BTC are stored in the 10,000 largest bitcoin wallets, which is 27% of all mined coins.
“The cryptocurrency industry claims that cryptocurrency is the path to financial inclusion. But the digital asset market is influenced by only 1% of the population, which owns the bulk of bitcoin. The situation is worse than with the US dollar. We need real solutions for the financial system to work for everyone, and not just for the rich, ” stated Warren.
However, many users of the social networking site Twitter disagree with the senator. Several people called Warren “ignorant” and “manipulative”, stressing the need to improve her education. In their opinion, cryptocurrency is decentralized and intended for everyone, not just the rich. Some have questioned the assertion made in the Wall Street Journal article.
“It is not true. A fixed supply of bitcoins means that ownership becomes less concentrated over time in line with acceptance, use, and value creation. There is no other alternative to solving the problem of issuing money, which leads to high taxes for the average citizen, “wrote one Twitter user.
Senator Warren has never had a great love for cryptocurrencies. Earlier this month, she raised concerns about the environmental impact of Greenidge Generation Holdings and other mining companies. In September, Warren compared cryptocurrencies to new shadow banks, and during a June hearing, the senator came out with harsh criticism of cryptocurrencies.
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