In the US, you only need $5.1M in net wealth to qualify as a one percenter. I say "only" because there is obviously a bit of a difference between scraping into the bottom of the one percent, and being in the 0.1 percent that is a steep curve and the gap is far wider than it is down to the median wealth.
The median is the middle score, and is a better representation of the situation. For instance, if there is a bus of 100 people who are millionaires by average, it could be that 99 of them are worth around 100K and 1 is worth a billion, making the average around 10M each. However, using the median score, it would be close to the 100K. Most wealth distributions are relatively smooth and then hockey-stick at the top end.
For instance, note the difference in average and median wealth of individuals in the US by age group:
There is a 4-5x difference between the average and the median, because that how top end skews all the numbers. Remember that the median is the middle score, so there are 50% of people below that point. This means that half of under 35s in the US have a net wealth below $13,900.
What caught my eye, was the requirements to be a one percenter at the lower end of the graph around the world. For instance, in Kenya, only $20,000 is needed to break into the top echelon. I say "only" here, because I am sure that like anywhere in the world, being in that 1% isn't easy when looking from a local perspective. That the median US citizen wealth between the age of 35-44, is in the 1% of Kenya by 4x and the average in that age group is in the 1% of Kenya by 24x - It is all very location relative.
I have a few Kenyan and Nigerian (similar wealth numbers for 1%) friends and connections on Hive from over the years and I wonder what they think about this, considering that some of them have accomplished one percent status with their Hive value. Or, could have. There are obviously many factors that go into this journey, but it is likely that for those who have been consistent and building their presence and stake, they are likely looking okay in terms of their localized value. For those who for whatever reason took another path, they might be lamenting the missed opportunity so far.
One of the challenges we face in a globalized world is being able to acknowledge how we see a view of everything, but don't have visibility and experience at a local level. Even if some comparisons can be made at a financial level, it is impossible to put oneself in another's shoes locally. For example.
For reference in HIVE, an account would need around 57,000 HIVE for 1 percent status in Kenya. 14,570,000 for one percent status in the US. Using France as the Base for Europe, it would require 10,000,000. And, 35,500,000 if in Monaco - which is about 9% of the total supply of HIVE.
While the 1% status tells something in terms of local level, comparing one percenters globally doesn't mean the same thing. A Kenyan one percenter lives a very different life to one living in Monaco. Suffice to say, that despite there being HIVE whales, that doesn't automatically put them into one percent status at the local level.
Assuming Freedom is from the US, they just scrape through.
But, while we tend to look to extremes to illustrate, the fact is that the majority of us will never make it to the top 1% of pretty much anything. However, this doesn't mean we can't improve our position in life financially. A little income here and there can start to add up. Some savings on a few things we can go without increases the gap between earning and spending and, a few decent investment decisions and we might be doing pretty at adding to our wealth slowly but surely and in time, we may be glad we did so.
The world is changing rapidly and the economy is part of the driving force. There are more opportunities arising, even though some doors are shutting, but we don't really know what is going to be in store for us globally, or at a local level in the future. Having a growth mindset and participating, gives us potential to not only take advantage of the current conditions, but develop to be suitable for the changing situation too. This also increases our chances to see the changes a they are happening, and being early adopters for what is to arrive.
The global wealth imbalance is enormous and it affects us heavily locally to lesser and greater degrees, depending on location. However, it isn't suitable to just throw up our hands and hope someone will save us, because we should know by now, that isn't going to happen. If we want to change our position in life, we are going to have to move - no one is going to carry us out of the goodness of their heart.
For most of us, Hive is not going to be our financial savior, but it can definitely be a supplementary part of our financial future, especially since it can help us learn and influence our behaviors to improve our processes - no matter where we live in the world.
Taraz
[ Gen1: Hive ]
Posted Using LeoFinance Alpha
The over-concentration of wealth in the USA is the stuff that revolutions are made of. Bread and circuses can keep the plebs docile right up until the breaking point.
Do you get the sense that the breaking point is not too far away?
Or perhaps, it is going to be 1000 cuts, with millions of breaking points.
I have no clue about when it might break. But history has not been kind to civilizations with wealth as skewed as ours.
Nor to the wealthy.
What does it take to be in the top 1% of Hive? I think I am close to that. Last I checked anyway. I think someone said I was close. I guess I don't really know. I am a little shocked the number for the US is so low. I will probably never reach that point, but 5.1 seems low to me. Which is weird because I don't live in a high cost of living area.
It wouldn’t take much, since there are over 2 million accounts. 😁
Top 1% of active accounts though? Probably the larger minnows as well as all dolphins and above.
10 Hive should do it :D
I think I am there.
Pretty sure :)
I'd assume you are a 1 percenter on Hive.
It is interesting, because while people talk about the one percent, there is a massive, massive difference between the bottom and top of that group. Completely different lives and lifestyles. Even the "ultra high" wealth is considered at 30M - which is not that high considering the billionaire's and close to.
Yeah, that is a good point. Although where I live being at 5.1M would probably put you in a pretty good place. You could likely get by with 1m earning 6% interest annually and still be okay.
"Live off the interest" used to be a thing - now it is still a long way from possible with the current interest rates - even though they are higher.
I think it depends where you live. I was being conservative at 6% and that would be just about what I make from my full time job now. My 403B pulls in 10% on average per year. I might end up making more in retirement than I did in my working days!
Wouldn't that be grand!
Considering that the median US annual income is around $30,000, I'm sure $5.1M is absolutely unobtainable for most US citizens.
Yeah, I don't see myself ever getting there. It's still lower than I would have guessed.
If you save all your pennies and do a crypto rug-pull, you are in with a chance.
I think HIVE can be our additional income at first, and depending on the price increase, it might be one's livelihood.
If the price of HIVE went up significantly and there was constant demand, it could support many people - but we are a long way from that.
What are your thoughts on US not going default yet it has been getting flat on many things. Do you think US needs to start the local manufacturing and should avoid outsourcing to china? Do you think that would fix the economy?
No, I don't think that would fix the economy. It is fundamentally broken and what they are doing is more stop-gap measures so they can keep the game going a bit longer.
It is staggering to think that a few years of practicing my writing and meeting new people on a blockchain has put me almost halfway to 1% in Kenya! I can’t see Hive being our saviour either but is sure is nice to be stacking just in case.
With real estate and net worth, I don’t feel like a millionaire! Cash flow can still be a huge factor ignoring net worth, especially when you run your own business. Happily plugging away now hoping for more rewards for the sun of my actions is just fine.
I just believe this wealth divide is spinning out of control and additions on this house of cards falling will change what 1% is and means. Definitely won’t stay the same but trends are troubling if you hope for things to keep going this way.
https://m.youtube.com/watch?v=eFTLKWw542g&pp=ygUXV2UgZGlkbnQgc3RhcnQgdGhlIGZpcmU%3D
I wonder if this sentiment and conversation has real merit or are we just echoing the same one that every generation has had in the past?
And, it is fun to do that practicing and that stacking. It might all go nowhere (I hope not), but at least there was some journey involved.
Absolutely. Numbers on paper don't buy a lot of food.
Will have a to watch later. Every generation has the same argument, but not necessarily the same disparity. The gap is enormous and the Covid years widened it further.
few generations from now things might be different. Hive might not surpass bitcoin but after a few decades it could be huge.
Or so I hope.20 dollar HIVE sounds good ;)
$5.1M is just a basic 3 bedroom, 2 bathroom house in Melbourne.
I'm kidding... for this year at least.
It won't be too long at this rate though...
Nice Informative post. 😊
It's a hard topic and I honestly think it will be tough to be financially free in the US from crypto. The bar is so high and it changes so much depending on the country you are in. Though if Hive continues to develop, that might come true eventually. It's a slow process of building here on Hive and I wonder if it's a better option to move out of the country when you build enough wealth.
Theoretically, if Hive can make a difference for thousands of Nigerians and Kenyans, is it possible that they could come back here with money earned in the real world? To continue to create and build here?
I'm a dreamer and a utopian). Although really no one knows what will happen when the economy finally collapses...
Wow.. For a moment I thought that was your wallet hahaha.. Interesting sharing and stats too!
Savior forever or savior in a tough moment in our lives? Because it could well be that if talking about the second case. Like saving you when you need it the most. When you are not ready otherwise. I think it has done that for me, for months enough to not need saving afterwards.
After that? It has been something that I feel as an advantage.
And... it also teaches you, meanwhile. Which is quite good.