Hisham Khan, CEO of Aldrin, a Solana-powered crypto exchange.
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In 2021, we saw crypto become more accessible to those who truly need it. In 2022, we could finally see the wealth gap start to narrow.
While a significant portion fueling the adoption of crypto has been hype and speculation, crypto, blockchain, and decentralized finance (DeFi), key developments in the technology have undoubtedly helped people in need.
NFTs (Non-fungible tokens) are helping artists in developing countries access new avenues of income, while play-to-earn games such as Axie Infinity are helping small-income earners in the Philippines generate wealth.
Digital assets have also grown in accessibility, from the rise in crypto ATMs to the uptick in digital wallet creation from developing nations, as well as data that shows lower-middle-income countries are investing and holding crypto at much higher rates, with adoption surging over 880% this year in more than 154 countries.
On a national and political level, countries, cities, and traditional financial institutions are also embracing crypto to increase wealth generation, from El Salvador establishing its own Bitcoin CIty to Miami generating USD 7m in yields with an intention to reduce taxation for citizens through its own token.
These are all part of the silver lining of the impending dark clouds, as the world of finance is set for a rocky start transitioning into 2022.
Evolution of finance from 2021 to 2022
Across the world, communities are feeling the effects of inflation. The US inflation rate has accelerated, raising fears the Federal Reserve has “lost control”. Inflation in ASEAN (the Association of Southeast Asian Nations) is also increasing.
With the USD being the global reserve currency, the wealth gap also continues to grow, with 89% of US stocks reportedly being owned by the wealthiest 10% of Americans, and traditional investments like bonds bringing smaller and smaller returns.
The rise in inflation and debt across the world, coupled with the issues with developing countries accessing capital, and wealth continuing to erode away from fiat inflation has driven more people to seek ways to preserve and grow the value of their assets.
While hype and speculation have fueled mainstream adoption and attention on crypto, blockchain, and DeFi, the discovery of anti-inflationary possibilities are helping the less-wealthy improve their financial literacy and provide greater financial inclusion.
However, there is still tremendous untapped potential as newcomers to wealth generation are not fully equipped with the knowledge of how yield-bearing assets work, but this is steadily changing with education and time.
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Read More: cryptonews.com