Crypto is the end of ‘Old Money’ and Nepotism.
Imagine the super rich bitcoiner in a world that’s all about bitcoin. Some guy with the equivalent of billions of dollars in spending power. The security of his bitcoin fortune ultimately comes down to safely keeping some files and passwords. Rather unlike our current economy where the rich can secure valuables in vaults and issue credit to run their businesses, the bitcoin rich guy will need to open his vaults and use his actual money to generate profits. He will need to use his BTC on employees, operations, lending, taxes, many many transactions. Lots of wallets entrusted to lots of people. So the bigger you are, the bigger the potential people are going to steal from you. Something that’s always been true of course, but in bitcoin when its stolen you can’t get it back.
The biggest threat for our bitcoin rich guy isn’t in his business though, its in his family. His BTC wealth gives him power. There was a time when power could be stolen in great quantities by killing a relative, and it happened a lot. In a bitcoin economy, the time of scheming nephews will return- only this time he doesn’t even need to knife you, just stealing a password will do it. . .
The rich guy then has 3 choices regarding family.
#1 He can die with his passwords and the wealth is gone forever.
#2 He can put incredible trust in his heirs while living, giving them his passwords and hoping for the best. (which could also result in a destroyed fortune if a thief or heir dies).
#3 The bitcoin rich guy could divide his wealth up to all of his family members evenly so that none of them have any reason to steal from him or kill him. Of course in doing this, he ceases to be a significant economic force as an individual.
Anyway you look at it. A consolidation of wealth power on the individual or family is destined to last a couple generations at best.
Bitcoin is the ultimate grinder of wealth inequity. At some point, every fortune, every Bitcoin, is destine to be destroyed. Someone somewhere will die or destroy the wealth and it will cease to exist (at least cease to be accessible). Under a bitcoin economy, the rich guy better not be a bastard. Bastards notoriously have the most disgruntled employees and the most scheming nephews.
So. . .
Want to be rich? . . . You’d better make people happy that you’re rich.
Want to keep your descendants rich? . . . Raise good kids that like you.
Reposted from my blog a couple years ago: https://bitcointhink.com/2014/01/11/bitcoin-is-the-end-of-old-money-and-nepotism/
Where's @cheeta ? I was just reading how its a bot that comments on re-posted content.
What is the valuation of talking to yourself on Steemit?
So, in short, it's never safe to be a rich guy....! :-D
Oh i think you can be safe and rich, but you gotta be surrounded by people who love you genuinely and harbour no ill intent toward you.
So, In short, its never safe to be a tyrant....:)
none of these sceniarios will work in the future because bitcoin is a temporary solutions to sunstitute a current monetary system within period of its collapse and restitution of sound money system
Thanks. I like your comment, but I don't agree. I think Bitcoin/cryptos are the sound money system that will take over when the current monetary system collapses. With its fixed predictable inflation, Bitcoin and other decentralized cryptos can be very reliable as a means to measure/transfer wealth.