There is this economist that I follow, Dean Baker, from the Center for Economic and Policy Research (@CEPR on Twitter, Beat the Press blog). Baker has been making a very strong case for the idea that the inequality that we see in America today is a policy decision and has little to do with how economies work. Guess who gets to write the policies that distribute income upwards?

Cryptocurrency breaks this system by distributing the power to create money. That means that the power to write economic policy is distributed among the people who use and create cryptocurrency. In a sense, cryptocurrency is the atom bomb when it comes to redistribution of economic power.

I can see why Wall Street is starting to warm up to crypto. I suspect they are aware that the genie is out of the bottle and will seek to co-opt crypto to the greatest extent possible. However, I doubt they will have much success in doing so since people will always be free to choose a new currency that serves them instead of the bankers.

People will always be free to use another medium of exchange by consensus. Since cryptocurrencies are networks unto themselves, they route around damage. Banksters are damage.