Okay, let's cut to the chase. Bitcoin reaching a value of $106,000 isn’t merely a nerdy benchmark of victory for the cryptocurrency and tech elite. It’s a flashing neon sign pointing to the real potential of crypto: a world where Universal Basic Income (UBI) isn’t a pipe dream, but a tangible reality.
Crypto's Unexpected UBI Connection?
Think about it. And the total crypto market cap—which you likely checked this morning—is right near its all-time high at $3.51 trillion. That’s trillion, with a "T." Even a fraction of that wealth—strategically taxed and redistributed—could provide an expanded safety net for millions. We’re speaking of real dollars saved here, not hypothetical returns on investment. We’re talking about radically reducing the incidence of extreme poverty, providing the poor a respite, some room to operate, room to invent, room to exist.
That last point is crucial. Governments are starting to seriously consider crypto. What if instead of hoarding it under the guise of self-sufficiency, they put it to work where it can serve our collective needs?
- Macroeconomic developments
- Potential U.S. policy shifts
- Discussions of a strategic Bitcoin reserve
Now, extend that idea to a tiered capital gains tax on crypto profits. Small gains, low tax. Big gains, bigger tax. Let’s say we implement a 5% transactions tax on every crypto purchase. On top of that, we would place a 20% capital gains tax on profits exceeding $50,000. This revenue could then be directly funneled into a UBI fund.
Tax Crypto, Fund Our Future?
A modest UBI of, say, $500 a month could make a world of difference to someone struggling to make ends meet. It's not about getting rich quick. It's about providing a foundation. And ultimately, it’s about recognizing that in a more automated future, we need to ensure that everyone can maintain a decent standard of living. It's about social justice.
The pain and suffering inflicted by economic inequality is undeniable and measured. When used appropriately and strategically, crypto has a role to play in addressing these challenges.
Okay, I hear you. "Crypto is volatile!" You're right. Bitcoin can swing wildly. Even with the calming influence of Vitalik Buterin, Ethereum may still crash without warning on a rollup security foray. Solana's future is uncertain. That doesn’t mean we toss the baby out with the bathwater.
Diversification and stablecoins. Second, a UBI fund shouldn’t be completely dependent on Bitcoin. It should be diversified across a large basket of highly liquid assets, including stablecoins pegged 1-to-1 to fiat currencies. This would give both developers and state/local governments a cushion against unexpected changes in the market.
Volatility? Stabilize With Strategy!
We should not be naïve or over-optimistic about the risks. We need to have the audacity at the same time to start dreaming about what's possible. The rewards are too big to miss out on.
Gen Z gets it. They see the broken system. They understand the power of crypto. They’re creating a future where everyone gets an equal opportunity to prosper.
It’s time to stop seeing crypto as just a speculative investment. Rather than giving in to this restrictive argument, let’s celebrate data as a powerful tool for social good. Now is the moment for us to call on our leaders to invest in the promise of crypto to help make a Universal Basic Income possible. It’s high time to work together to create a more just and equitable future.
- Diversify: Invest in a basket of cryptocurrencies, including Bitcoin, Ethereum, and stablecoins.
- Hedge: Use derivatives to hedge against market downturns.
- Stagger payouts: Distribute UBI payments gradually over time to minimize the impact of short-term volatility.
We need to be realistic about the risks. But we also need to be bold enough to explore the possibilities. The potential rewards are too great to ignore.
Gen Z gets it. They see the broken system. They understand the power of crypto. They're ready for a future where everyone has a chance to thrive.
It’s time to stop thinking of crypto as just a speculative asset and start seeing it as a tool for social good. It’s time to demand that our leaders explore the potential of crypto to fund a Universal Basic Income. It’s time to build a more just and equitable future.
Let's make it happen.
