Is Bitcoin a new tool to make the privileged richer?
- Girikrishna GP
- Nov 12
- 3 min read
When Bitcoin first appeared in 2009, people went crazy. Honestly, the excitement was off the charts; everyone believed this thing would completely overhaul the way money works. No more banks, no government getting involved, none of that traditional finance stuff. Supposedly, anyone with internet could join in.
Now, fifteen years later? People are starting to look at it with suspicion, questioning whether it has actually empowered regular people or just turned into another exclusive club for the wealthy, this time digital. Did it really make a difference, or is it just the same old story in a new, techy package?
Bitcoin and its revolutionary promise
Bitcoin was created by the mysterious figure known as Satoshi Nakamoto in the wake of the 2008 financial crisis, when global trust in banks had eroded. The idea was simple but radical: a peer-to-peer digital currency with no central authority. In theory, Bitcoin was to be the ultimate equalizer: no banks, no gatekeepers, no government interventions. Anybody with access to the internet could mine or trade it. To millions, it was a representation of financial freedom, an avenue to step outside the very system that had failed them.
But as the value of Bitcoin shot up, early ideals of Bitcoin gave way to speculation and profit.
Who actually owns the Bitcoin?
Even in a decentralized system, Bitcoin wealth has concentrated itself in more familiar ways. According to a report published by the National Bureau of Economic Research in 2022, the top 10,000 investors in Bitcoin own a roughly one-third share of all outstanding Bitcoin.
The "whales"- those individuals and institutions with huge holdings - can send the market up or down by merely buying and selling large quantities. Small investors, who often invest during the hype cycles, bear the brunt of a volatile market or crashes.
As Bloomberg noted,
"Bitcoin may have started as a rebellion against Wall Street, but it's now being shaped by it."
Big investors, hedge funds, and corporations have entered the scene, turning what was once a digital experiment into an elite-dominated financial asset.
Access and inequality
While Bitcoin is technically open to all, access is unequal: mining requires high-end hardware and considerable electricity, making it practically impossible for those in low-income regions to participate profitably.
Even trading or securely storing Bitcoin requires a level of digital literacy, internet stability, and financial risk tolerance that isn't a given for everyone. The volatility of Bitcoin further makes it a dangerous bet for small investors who can't afford to lose what they put in. In other words, the decentralized design of Bitcoin doesn't quite equalize opportunity.
The new digital divide
All too often, the story of Bitcoin reflects that of our wider economy: innovation that starts as empowerment often ends up reinforcing existing hierarchies. For early adopters and wealthy investors, Bitcoin has been a goldmine. For others, it's a gamble.
Still, Bitcoin's impact can't be taken away. It has brought freedom in countries whose currencies have burst, enabled cross-border payments, and, more indirectly, has spawned thousands of decentralized projects in efforts to expand financial access. The challenge ahead is ensuring that these innovations don't circulate within the same privileged circles.
Final thoughts
Is Bitcoin a new tool to make the privileged richer? Partly, yes! The system that promised equality mirrored the same inequalities it was trying to supplant. Yet, Bitcoin's story is not over: with improved technology, regulation maturing, and awareness increasing, it can move closer to a financial system belonging to everybody, not just the powerful few.
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