o3n [ozone] blockchain layer

Blockchain source

Menu
Menu

Economist warns of dystopia if ‘Bitcoin Aristocrats’ become reality

Posted on February 27, 2021 by nbelov

Critics of the digital currency have visions of the future every bit as silly as maximalists’.

Not everyone is excited about hyperbitcoinization. 

According to a popular copy/paste meme, Bitcoin holders are set to become a neo-aristocracy as Bitcoin becomes the dominant world currency:

Only $BTC holders will be permitted to the upper echelons of society. Nocoiners will be shunned, socially and financially. At best forced to become servants to the new upper class. At worst executed for crimes against the #Bitcoin empire.

— The Crypto Dog (@TheCryptoDog) January 2, 2021

The meme is part of a larger vision for Bitcoin’s future, a semi-serious but mostly tongue-in-cheek narrative that can be lumped under the “Bitcoin Citadels” umbrella: a vision of the future in which Bitcoin becomes so valuable that hodlers become lords quite literally defending their coins in castles. 

Originating from a Reddit post written by someone claiming to be a time traveler (they called for a $1 million price target in 2021, if you’re curious), the Citadel meme has taken on a life of its own, even inspiring a short film.

But despite the self-evident farce and fantasy behind the meme, one economist is now warning that it might not be far off from reality should Bitcoin succeed in its mission to achieve monetary supremacy.

On the think tank Center for Economic Policy and Research’s website, academic Jon Danielsson of the London School of Economics wrote an article yesterday in which he envisions a future where “Bitcoin aristocrats” will “fuel social division and populism” through extreme wealth inequality:

“To begin with, the current owners of bitcoin will become the wealthiest people in the world, rivalling the kings and emperors that ruled over empires in centuries past. They literally will own all the money. They can buy anything they want. There aren’t that many of them. Compared to the multitudes that own assets today via all the pension funds and mutual funds and the rest, it is a tiny group of people.”

The government would be forced to “protect or attack” this new class of overlords, ones who attained their “rank just by buying early. They will make no contribution to society.” 

Gloom and grumpiness aside, Danielsson ultimately concludes that such a future “cannot” come to pass because Bitcoin is unsuitable as a unit of account due to its price instability. Because of these “internal contradictions,” Danielsson writes, “the price of Bitcoin will head to zero.”

Economic analysis that comes to the same conclusions as time-traveling Redditors aside, not everyone is as grim about a hyperbitcoinized world. In fact, in many cases it has proven to be a boon for countries struggling under inflation. 

Source: Cointelegraph https://cointelegraph.com/

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • How the need for secure supply chains is propelling blockchain – strategy+business April 15, 2021
  • You can already invest in hundreds of ETFs with exposure to Bitcoin April 15, 2021
  • Bitcoin power consumption ‘66 times higher than in 2015’: Citigroup April 15, 2021
  • Grayscale tops $50 billion: ‘Will soon pass world’s largest commodity ETF’ April 15, 2021
  • Video: Breaking down blockchain and Bitcoin – The State Press April 15, 2021
  • Raise a PINT to Polkadot’s new index token: Six top projects sign up April 15, 2021
  • Watch out as r/Wallstreetbets finally allows crypto threads… within limits April 15, 2021
  • ePIC Blockchain Raises $7.5M to Manufacture ASIC Crypto Miners in North America – CoinDesk – CoinDesk April 15, 2021
  • Building a City on Blockchain – Bloomberg April 14, 2021
  • Why Cryptocurrency Stocks Like Marathon Digital and Riot Blockchain Crashed Today – Motley Fool April 14, 2021
  • $420M in leveraged long traders liquidated after XRP rallies to $1.96 April 14, 2021
  • Garry Tan’s 2013 investment of $300K in Coinbase is now worth $2.4B April 14, 2021
  • German software developer donated $1.2M in 'undeserved' Bitcoin to political party April 14, 2021
  • Price analysis 4/14: BTC, ETH, BNB, XRP, ADA, DOT, UNI, LTC, DOGE, LINK April 14, 2021
  • Greenberg Traurig Leader On The Evolution Of Blockchain – Law360 April 14, 2021
  • Over 10,000 blacklisted BTC from 2016 Bitfinex hack on the move April 14, 2021
  • Coinbase adds hidden message with political undertones to BTC blockchain on day of IPO April 14, 2021
  • Riot Blockchain's Acquisition Changes the Company, but Not Its Outlook – Investorplace.com April 14, 2021
  • Bitcoin price drops to near $61K shortly after COIN lists on Nasdaq April 14, 2021
  • Riot Blockchain: Recent Developments Keep Up Momentum – Yahoo Finance April 14, 2021
  • Cofounder of blockchain-based solar power company explains what the technology means to the future of energy – Business Insider April 14, 2021
  • Coinbase stock looks to find its footing at $350 following explosive open April 14, 2021
  • 3 reasons why Elrond (EGLD) price soared above $245 April 14, 2021
  • SIMBA Chain awarded a SBIR Phase 1 contract to bring blockchain-enabled digital AM to battlefields – 3DPMN April 14, 2021
  • Coinbase's COIN stock trading on Nasdaq is off to a rocky start April 14, 2021
  • Blockchain Week in Review – April 2021 #3 | Perkins Coie – JDSupra – JD Supra April 14, 2021
  • Coinbase listing is crypto’s 'Netscape moment,' says Mike Novogratz April 14, 2021
  • Blockchain.com CEO on Coinbase direct listing: 'I think they’ll trade above $100B' by end of the week – Yahoo Finance April 14, 2021
  • $5,000 Ethereum by the end of May? On-chain data suggests so April 14, 2021
  • China's Bitcoin Miners Will Consume as Much Energy as Mid-Sized Country within Three Years | Energy Science & Engineering, Environment – Sci-News.com April 14, 2021
©2021 o3n [ozone] blockchain layer | WordPress Theme by Superbthemes.com