Wealth inequality rises by default as rich people are able to invest more of their income than the average working person who is forced to spend a greater percentage of their income on consumption just to survive and live. This is simple maths and unavoidable. One way governments have tried to cure this imbalance (and win elections) is through running fiscal deficits in order to fund massive social welfare programs, healthcare programs, education programs and infrastructure projects amongst other things. Due to the unavoidable nature of wealth inequality the money leaves the hands of the poor fairly quickly and ends up with the rich but at least the poor have been bought some time and the cycle can continue for quite a long time as we are seeing. The government debts that are racked up are, through necessity, paid off with freshly printed currency and here is where Bitcoin comes in as everyone knows. Nobody likes their money being debased, not poor people, not rich people.

But a world in which Bitcoin is the de facto currency is one in which governments will no longer have the option to print currency and attempt to distribute it to the less well off. It's a world in which governments will not be able to afford the maintenance of infrastructure and investment in hospitals, schools etc. Every major amenity and service will be privatised. Social programs will be a thing of the past as Governments will not be able to finance them. Governments will not be able to collect taxes in Bitcoin in the same way as they collect taxes in fiat currency as people will have their stashes sequestered away in offline wallets. In a very unequal society the last theoretical resort is to aggressively tax rich people or print money and give it exclusively to poor people but these options are taken away in a Bitcoin world. Besides that, in a globalised world rich people are exceptionally successful at dodging tax which is why governments prefer the much easier option of simply printing money.

As the world transitions to Bitcoin, demand for fiat currency will plummet and it will lose all of it's value much quicker than could realistically be caused by central bank printing. As regular people hold more of their net worth in cash compared to rich people, the collapse in the value of fiat currencies will hurt poor people the most, and will not hurt people with assets at all.

As for anyone who says working people will just work in exchange for Bitcoin and slowly build up their wealth over time the reality is that labour is less valuable than ever and rich corporations are expanding their profit margins. We will not be getting a bounty of Bitcoin from our employers every week or month. In fact rich people and businesses may decide to pay less on wages than ever and create less jobs than ever as the psychology of a scare resource takes hold of their psyche too.

As rich people continue to re-invest the greater share of their income and regular people continue to be compelled to spend the greater share of their income on necessities, it won't take long until the vast majority of the 21 million coins are in the wallets of the very rich and once that happens there is no possible way to redistribute the wealth. As corrupt and incompetent as governments around the world are, the current system protects the financial welfare of regular people more than a Bitcoin based free market will.