Satoshi's vision was to create an electronic, peer-to-peer payment system that operated outside the reach of governments and required no intervention from the banking system. This was a model designed to operate outside the existing framework.
While it is questionable how much of this payment system has come to light, especially for Bitcoin, there is little doubt that cryptocurrency is now turning into a legitimate financial system.
This means it is offering the opportunity for tens of millions to build wealth.
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It is no secret that the existing financial system is skewed towards the few who are powerful enough to be on the receiving end of the central banks policies. This group can be summed up collectively as "Wall Street". They are the ones who end up with the greatest benefits.
Over the last few decades, this has only increases the wealth inequality, not only across the globe but also within the developed worlds. It is a problem that will only expand as we move forward due to the compounding nature of finance.
The rich truly do get richer because a much smaller percentage of their earnings are required to sustain themselves. The lower tier can never get ahead since almost all of what one receives is doled out in payments.
Thus, nothing is saved nor is there any investment.
This reality is reflected in the percentage of people holding stock. Studies show that more than 90% of the stock is held by 16% of the people. It is a number that is also tilted towards the top 5%.
We are starting to see a different system emerging in cryptocurrency.
While the recent headlines outline has Wall Street institutions are starting to pile into Bitcoin (and some Ethereum), there is a whole lot more taking place. Obviously, the big money players are simply the same characters looking to grow their wealth. Therefore, Bitcoin is offering a bit of a repeat to what we already have.
One of the major keys to wealth building is that one needs to own something. That is where the vast numbers fall short. Since they lack the resources to buy assets, they are mired in the same financial position for life.
Obviously, many of the top tokens require one to bring assets, i.e. money, to the table. Since the present financial system does a poor job of distribution, especially as wages came under pressure the last couple decades, many are out.
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Cryptocurrency is starting to change that. When we move beyond the top coins, we can see things changing. Many blockchains are seeing projects being set up that enable people to be rewarded in tokens. This helps the distribution, reaching people who previously were absent.
Once tokens are received, one is confronted with what to do with there. There are a few choices. To start, one could sell them, eventually moving into fiat currency. Another choice is simply to hold them. A third is to stake them to earn some type of return. And finally, one could swap them for another token.
Here is where we see the process of wealth building beginning.
Obviously, swapping out for fiat is not likely to get one very far unless the proceeds are going towards another asset such as stocks. The other options can provide individuals with a path to growing wealth.
This year saw the explosion of DeFi. Anyone who ventured into that realm realizes it it a whales paradise. Quite simply, you have to have some means and be playing with some money. This is progress because the whales there certainly are not the same ones, for the most part, that make up Wall Street. Those are the true Whales, putting Bitcoin whales to shame.
Nevertheless, the opportunity at return is there. However, this is not the only place.
All over the crypto world we are seeing where people can get involved in different projects, acquiring coins that provide a nice return. In fact, the returns are usually far superior to what the present banking system is offering.
We are seeing innovation starting to enter the picture. Many out there are developing platforms that allow people to stake their token, or get involved in a fund where other assets are acquired, with only small amounts of crypto. One can simply swap what was received as a reward for another token and, suddenly, an asset is owned. It might be small but one has to start somewhere.
A few tokens from a game, blog post, or some comments can thus be put into something that will grow over time. Of course, depending upon the token received, that might be utilized for further wealth building simply by hodling it.
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The key here is the distribution. People are able to directly receive from the new tokens created. This is not the case with fiat currency. Under our central bank system all money distributed, unless authorized by Congress, either goes through the banking system or buys from the Wall Street types by directly entering markets. Thus, the only way the average person gets the money after it was in the hands of someone else first.
With cryptocurrency, direct payout comes from blockchains or direct from projects. Some only reward through miners, which some have compared to central banks. Whatever the view there, we see other projects that do provide direct rewards for activities deemed positive for the blockchain.
Obviously the quickest way to grow one's wealth is to put 100% of what is received into assets that can potentially provide a return. This is not feasible for all though. Hence, everyone needs to start at the point they can. While some, if not the majority, of money needs to be removed, a certain percentage should go into these types of assets. Even if it is 10% of the total rewards, this is enough to start growing one's holdings.
Here is where consistency comes in. If one can keep active, generating regular rewards, and then keep putting that into assets, wealth will grow. It will not be an overnight process but it does happen. A few hundred can grow into a few thousand. This is where a long-term focus is required.
Over time, we are seeing more options popping up. This is a high growth industry with development taking place at a rapid pace. For this reason, many outsized returns will be achieved. It is a matter of being involved in the early stages and letting things grow. We saw a similar situation with the Internet a few decades back although that lacked the tokenization aspect of things.
We are rapidly seeing cryptocurrency becoming a viable wealth builder for the tens of millions of people who are involved. There is a reason why Wall Street is starting to pile in with their vast resources. They see the possibility of what this can offer.
While few of us can play in that league, we do have the opportunity to focus further away from the top tokens. There are many projects that will 10x (or more) over the next couple years. They are right before our eyes and open to all of us. The big players are not watching them which provides opportunity. As always, a lack of competition means we can get in while things are still under the radar.
If one can hit on a couple of projects which nice stake is held, the end result can be life changing money. Naturally, there might be a lot of frogs that need to be kissed before the gem is found, but they are out there.
This is the opportunity that cryptocurrency is presently offered. Those who take advantage of it will likely do very well.
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