Gini Coefficient and the fate of Cryptocurrency

Existing Cryptocurrency that stimulates ‘the rich get richer and the poor get poorer’ system will face its downfall

Gini Coefficient is a way of measuring inequality in income. As shown in the table below, income is accumulated from the poorest to the richest, and the ratio of the cumulative income graph area (B) to the triangle area (A+B) indicates the Gini coefficient. If everyone has the same income as the Line of Equality in 45 degrees, the Gini coefficient is 0.0 and the state of extreme inequality in which one person has all income is 1.0 of Gini coefficient.

Korea's Gini coefficient rate is in 2016 was 0.357 based on the household finance welfare survey released by the National Statistical Office. The Gini coefficient in most developed countries is between 0.25 and 0.3 so Korea is better than the U.S., but it is similarly unequal to Britain.

(Source: Hankyoreh News, March 6, 2017)

Korea used to be a fairly equal nation until 1996 but has been severely deteriorated over the past 20 years. We regressed as share of top 10% of the income stakers were 29% in 1995 and fell to 45% in 2012.

One of the reasons why I started Blockchain OS in 2015 and devoted myself to Blockchain and Cryptocurrency business was because I thought that it was creating a new international financial order to solve the issue of inequality.

3 years from then, Cryptocurrency as of September 2018, has not been narrowing the gap between the rich and poor but also is aggravating the inequality in our society. Based on the three major cryptocurrency wallets, Bitcoin, Ethereum and Ripple, top 1% shares the property value of the rest 99%, resulting in a drastic figure of Gini coefficient of 0.99. If we consider those who do not own a cryptocurrency wallet, it would result as radical figure of over 0.999999 Gini coefficient. As the price rises, the inequality grows.

The greater the value of Cryptocurrency, the greater the gap between rich and poor, which governments and people will not tolerate. It is a prophecy that existing cryptocurrencies will fail.