DESPITE what those with libertarian tendencies may tell you about how cryptocurrency is a revolutionary force — a decentralised, borderless technology that would level the financial playing field and provide access to wealth for the masses — the reality, as so often, is disappointing. 

It was supposed to break the chains of traditional financial systems and offer an alternative to banks and governments. However, cryptocurrencies have instead become a vehicle for wealth concentration, benefiting the already affluent while leaving the majority of people behind. 

Despite its promises of financial freedom, the digital currency boom has done little to reduce inequality. Instead, it has become yet another instrument in the hands of the wealthy, further entrenching the financial status quo as we have seen with Trump’s personal profits from the “Trump meme coin.”

One of the key factors that has prevented cryptocurrency from becoming a true equaliser is the steep barrier to entry. While cryptocurrencies like Bitcoin may appear simple on the surface, they require technical knowledge and a basic understanding of blockchain technology. 

Without this expertise, it’s difficult for individuals to even begin participating in the crypto market. For those without a background in finance or technology, navigating this complex ecosystem can be a daunting challenge.

Beyond technical knowhow, there’s another hurdle: capital. The price of major cryptocurrencies has skyrocketed in recent years, putting them out of reach for most ordinary people. 

Bitcoin, once accessible to anyone with a computer and a modest investment, now commands prices that are far beyond the means of most working-class individuals.

For many, the opportunity to buy into the cryptocurrency market is limited to those who already have significant capital to invest. The result? Wealthier individuals and institutional investors are able to accumulate large amounts of cryptocurrency while the majority of the population remains locked out.

Now, with cryptocurrencies becoming increasingly mainstream, the players in the market are no longer just individual enthusiasts; large institutional investors and hedge funds are heavily involved. 

These financial giants have the capital, infrastructure, and expertise to navigate the volatile crypto landscape. 

They can buy up large amounts of digital currency and manipulate the market to their advantage. This consolidation of wealth has led to the creation of a crypto elite — those who control vast amounts of the market, further exacerbating the concentration of wealth.

One of the most often cited advantages of cryptocurrencies is the potential for huge returns. However, this potential is accompanied by extreme volatility — prices can fluctuate wildly within short periods, making the crypto market an unpredictable gamble. 

For those with the capital to ride out these fluctuations, it can be a lucrative bet. Wealthy investors can afford to take on this risk, diversifying their portfolios to absorb the impact of a downturn, and waiting out market crashes.

For the average person, however, the volatility of the cryptocurrency market is a dangerous gamble. 

Lower-income individuals who invest their savings in hopes of making a quick return are often hit hardest when the market swings down. 

Without the financial cushion that wealthier investors have, the risk of losing money is much higher for those who can least afford it. While the rich can weather the storm, for the working class, the volatility of crypto markets often leads to financial hardship.

Another critical issue with cryptocurrency is its lack of regulation. Governments worldwide are still scrambling to create frameworks to govern the digital currency market, and in the meantime, the space remains rife with scams and fraud. 

Cryptocurrencies, especially altcoins, are frequently marketed to inexperienced investors, many of whom are taken in by fraudulent schemes promising massive returns. Without the protection of regulatory oversight, these scams flourish, and those who fall victim have little recourse.

The wealthier individuals and institutions that dominate the market are far better equipped to protect their investments from such fraud. 

They can afford sophisticated security measures, legal advice, and financial experts to navigate the risks. For ordinary people, however, the absence of regulations leaves them vulnerable to exploitation. 

The crypto market, as it currently stands, is a minefield for the uninitiated, with the rich able to exploit it to their advantage while the poor bear the brunt of its risks.

The market is dominated by rich techno feudal Sheriffs of Nottingham masquerading as rebellious Robin Hoods. What they do leaves the actual working-class investors vulnerable to scams, price volatility, and the environmental costs of mining. 

Far from levelling the playing field, cryptocurrency has become a tool for the wealthy to expand their fortunes, further entrenching the divides that exist in our financial system. 

It is just the latest in a string of destabilising methods to trade fictitious capital but it is one that some who consider themselves on the left still treat as a potential path forward. 

At the end of the day cryptocurrency is a tool but it is worth looking at how this tool is being used and who it is benefiting. Until meaningful change is made to ensure that cryptocurrency works for everyone, it will remain, at best, a tool for wealth accumulation for the privileged few.

Myles Trapperby is a member of the Young Communist League and Unite.