Cryptocurrencies have an inequality problem: A growing wealth gap
As blockchain-based currencies face up to ESG scrutiny, the crypto community is coming up with ways to deal with climate concerns and governance issues. But the social aspects of a growing wealth gap still need tackling.
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CRYPTOCURRENCIES may be widening the wealth gap. These supposedly decentralised digital currencies are owned, and their infrastructures supported, by a surprisingly small number of individuals and institutions. Even as they fall short of lofty ideals, they are also adding to systemic risk.
While crypto advocates have been paying attention to environmental concerns and crypto companies are beefing up on compliance hires amid regulatory scrutiny, the social concerns seem to be overshadowed.
A recent study by the United States' National Bureau of Economic Research found the top 10,000 individual Bitcoin investors hold 5 million Bitcoins. That's over a quarter of the 19 million Bitcoins in circulation.
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