The post Blockchain technology is the key to grassroots financial freedom appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. Traditional finance has produced many good things, like near-instant payments, intuitive mobile apps, etc. But on the flip side, its centralized and siloed infrastructures have created deep financial inequalities across geographical and cultural lines. Roughly one percent of the world’s population owns over $87 trillion in financial assets, i.e., over 43% of the total global financial wealth. More than 63% of their wealth is in financial assets compared to 37% for the majority. Blockchain can fix this. Grassroots inclusion is the ethos of decentralized wealth-generation protocols and financial networks. But we mustn’t take it for granted. Especially when legacy players like Blackrock, VanEck, etc., are entering the space with a range of centralized products and ETFs. Institutions wield a two-edged sword Besides macroeconomic factors like moderating inflationary pressure, exchange-traded funds (ETFs) have been crucial in bringing the bulls back to crypto. The optimism around such developments is understandable. Exposure to blockchain-based digital assets through familiar instruments could provide mainstream users with a stronger impetus to join.  Could this be the inflection point we’ve been chasing all these years? Yes. Given we don’t inherit persistent problems like high barriers to wealth generation and optimize for inclusion instead.  One needs a minimum of $2 to $5 million in investable assets to access wealth management firms in the US. Whereas big fund managers like Blackrock exclusively serve high-net-worth individuals with portfolios above $100 million. Only the global financial elite can meet either of these criteria. It’s unlikely that offering crypto-related products will automatically make established institutions more inclusive. Because the roots of exclusionary business models run deeper than this or that company’s policies or intent.  Widespread information disparity is inherent…

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Filed under: News - @ August 6, 2024 5:14 am