Could Bitcoin mend a system where President Trump is being extra generous toward banks through tax cuts?
JP Morgan Profits Dwarf Ethereum
US bankers have been laughing all the way to the bank last year, quite literally. In the best year for any bank in the history of the USA, JP Morgan announced $36.4 billion in profits during the past 12 months.
That is roughly twice the total market capitalization of Ethereum.
The bank is now making twice as much as it did before the banking crisis ten years ago and national debts are still escalating.
According to Bloomberg, the top six banks combined made an astounding $120 billion in profits last year. That is almost as much as bitcoin’s entire market cap and 20 times more than that of Bitcoin Cash.
US President Donald Trump has given banks a combined $32 billion in tax cuts – enough to end world hunger for a year.
Big Bank savings under the Trump tax cut:
JP Morgan: $8.8 billion
Bank of America: $7.6 billion
Wells Fargo: $6.5 billion
Citigroup: $4.6 billion
Morgan Stanley: $2.7 billion
Goldman Sachs: $2.3 billion
TOTAL: $32 billion
That’s enough cash to end world hunger for a year.
— Public Citizen (@Public_Citizen) January 17, 2020
Bitcoinist reported on the wealth gap yesterday stating that the 2,153 wealthiest billionaires, many of whom are bankers, have more wealth than 4.6 billion people combined.
And Banks Give Us What Exactly?
All of this raises a very pertinent question that what exactly do banks give back to the people?
Of course, there is a $30 charge for going one penny into overdraft, $10 for a stock transaction, next to negative interest for savings accounts and 20% interest rates for credit cards.
Add to that the massive fees on foreign exchange services, and an estimated $400,000 paid back in total over the lifetime of a mortgage for $200,000 borrowed and it is clear who the thieves are in this situation.
With the global national debt exceeding $250 trillion these profiteering banks are adding to it by printing more money to justify their existence. The US and China alone have accounted for 60% of the increase in global debt in recent years led by a surge in borrowing.
No matter what politicians say, this is totally unsustainable and the increasing wealth gap will eventually lead to a global economic meltdown and revolution.
Bitcoin Solves This
A huge paradigm shift is needed and this will spur ‘the great wealth transfer’ in which millennials will inherit the wealth from the richest generation in history, the boomers.
An estimated $68 trillion will be passed down from boomers over the next 30 years and millennials are already distrustful of banks following the fallout of the 2008 financial crisis.
This means that there will be massive investment in crypto and bitcoin. DeFi is also likely to play a much larger role in the new financial world as it does not entail billionaire bankers enriching themselves off people’s monetary misery.
Will bitcoin solve the banking crisis? Add your comments below.
Images via Shutterstock, Twitter: @Public_Citizen