Bitcoin at $100K raises questions on wealth gap and inequality

Bitcoin’s (CRYPTO:BTC) recent milestone, crossing $100,000 on December 5, has sparked debates about its role in addressing or exacerbating wealth inequality in the digital age.

The cryptocurrency's value rose over 120% year-to-date, creating life-changing returns for early adopters.

Data from Bitstamp reveals Bitcoin has increased 893,000-fold since August 2011, making it one of the most profitable assets in history.

However, this surge has also raised concerns about its accessibility and long-term impact on wealth distribution.

Anndy Lian, a blockchain expert, highlighted that the concentration of Bitcoin among whales and financial institutions poses a risk.

“This concentration poses a risk of perpetuating existing inequalities, as those with substantial holdings can exert considerable influence over the market. The volatility and speculative nature of Bitcoin mean it is not a foolproof solution for addressing wealth inequality,” he stated.

Since the launch of spot Bitcoin ETFs in the U.S. earlier this year, institutional investors like BlackRock have acquired significant holdings.

Currently, these ETFs control nearly 1.1 million BTC, valued at over $100 billion, nearing the estimated holdings of Bitcoin’s creator, Satoshi Nakamoto.

Bitfinex analysts view Bitcoin as an asymmetric wealth creation tool rather than a definitive solution to inequality.

“Bitcoin will generate asymmetric wealth for those who believe in and hold it… akin to the purest form of capitalism,” they remarked.

Despite its current high price, experts argue there are still opportunities for late adopters.

“By its design, Bitcoin can still preserve wealth distribution as anyone can buy only some Bitcoin to gain exposure to the coin,” Ryan Lee from Bitget Research noted.