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RE: Why Inequality on Steemit is NOT so Good Thing!

in #steem8 years ago (edited)

Let's make a thought experiment. Suppose all bitcoins, eth, steem are divided equally in the cryptocommunity. What do you think will happen next?

The answer is that there is a fundamental equilibrium problem in the fiat and asset world. Meaning that due to some people having way more fiat money or assets, and some having almost nothing at all, there are some priority issues: The wealthy want to invest their excess and the poor want to cash-out their reserves to meet their day-to-day affairs.

So, even if we had crypto-equality, we'd then have a situation where the poor would quickly cash out and the wealthy would quickly buy everything dumped. And then the poor would again argue that crypto-wealth is distributed unequally.

You can't hold "steem" if you live in conditions like the above photo. 100 steem for these people may be a years worth of work that can buy them real life necessities. They'd have no incentive to hold, but a lot of incentive to cash-out. Which again would make the percentages come back to "the rich have all the wealth" levels.

So the problem is not at the crypto-level. It's at the fiat and asset level which provides a "substrate" for inequality in everything else.

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I'm not saying that all steem power should be divided equally among users. I am saying about more healthy distribution like in modern countries. And I am not suggesting to get this distribution by force.

The thought experiment just takes it one step further than what you propose and shows that even with more distribution than your proposal, power/money consolidation will still be an issue. Consolidation will inevitably happen due to the underlying dynamics in the fiat/asset world.

In other words, a more fair distribution is a short to mid-term condition and never stays that way in the long run.

I don't think it can be solved without solving the problems in fiat and asset inequalities. If you have serious real life needs, you will cash out because you need the fiat to pay the rent, the loans, your food, etc. If you have more money than you can spend, you will buy more cryptocurrency than others can afford - because your reserve will be considered "investment money".

It can't really happen as the world operates. It's the same with everything, whether it is stocks, real estate, gold, etc. The wealthy 1% and owns >50% of the global wealth.

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