At BTC World News, we’ve starting talking about the tough questions not being asked about Bitcoin’s future. With the current rate of Bitcoin stagnant in the 90’s, we’ve placed our focus today on the topic of, “Wide Scale Bitcoin Distribution”.
With only 21 million Bitcoin’s ever to be available, in order to reach the goal of world wide adoption, a focus on Bitcoin distribution needs to start from somewhere. Frankly, every person on Earth can not have hundred’s or even thousands of single Bitcoin’s individually (1.0BTC), mainly because their aren’t enough and it wasn’t how Bitcoin was designed or intended to be distributed.
First, there’s no need to panic on the previous statement because the way Bitcoin’s system is designed, most people will have some denomination starting from 0.XXXXXX, which will actually be a great deal of money one day.
Considering the Winklevoss twins as example, recent reports detailed that they were in possession of 1 percent of the world’s available Bitcoin. A question today is, did this help or hinder the current status of Bitcoin?
One consideration is that it could result in a serious problem and hinder the future value and stability of Bitcoin. As we understand Bitcoin, it’s designed to be valued at 4x the total world worth. So what does this mean exactly, 4x the world’s worth?
Based on a recent search on Google, we found articles detailing that the world has in circulation roughly 77 Trillion dollars. Clearly this is spread out across every country in the world and in different forms of currency, but as the world in general, this is what is thought to be out there.
Based on this data, we’ve opened up our trusty Mac calculator and carried the 1, added a few zero’s to meet the 4x mark, where the total value of Bitcoin when it reaches it’s maturity would be, 308 Trillion or, $308,000,000,000,000 based on USD.
That suggests that each Bitcoin would be worth 1.4 million dollars each on average to equal 308 Trillion BTC by means of 21 million total Bitcoins.
Therefore the Winklevoss twins owning 1 percent would be have in excess, nearly 3 Trillion dollars in BTC. Putting that into perspective, that’s a little less than one quarter, “1/4” of the United States’ National Debt, solely owned and controlled by the Winklevoss twins.
Now we’re not taking a swing at the Winklevoss twins by any means as everyone has the right to good fortune, though we are questioning the impact of how having that amount of BTC could, in the long term, affect the population as a whole and Bitcoin’s overall distribution. Reflecting on the national debt at a whopping 16 Trillion, that would suggest that the Winklevoss twins 1 percent would impact 1/4 of the country’s population (Total American Population: 316,335,920) thus equaling 79,083,980 people by means of 1 percent of Bitcoin not being readily available in wide scale distribution.
Keep in mind that we started this article on the topic of Bitcoin distribution and we noted above, the ability to distribute 1 percent of Bitcoin to at least 79 Million people would equal a common BTC distribution of $37,934.35 dollars per individual based on a matured Bitcoin economy valued at 308 Trillion.
As to date, there are no Trilionaires in the world because it would likely create a significant issue in balance, which is exactly what Bitcoin was designed to do, create balance to the world’s economic conditions.
You might be asking if we’re suggesting the Winklevoss twins part with their 1 percent of Bitcoin, absolutely not, well maybe to some degree, but in the sense of global economic responsibility. There’s a responsibility to having that kind of wealth and for them to position themselves or anyone as potentially the world’s first Trillionaires maybe detrimental to the entire Bitcoin ecosystem.
Even these company’s who are manufacturing TeraHash Bitcoin Miner’s are potentially rocking the foundation of Bitcoin. If a handful of entities and individuals gobble up the mass majority of Bitcoin, rather than spreading it out evenly, it introduces a high potential of failure and reminds us of the phrase, “the rich get richer and the poor get poorer” and thus, “history repeats itself“.
As we said, we’re not stating that the Winklevoss twins should part with their 1 percent of Bitcoin or that TeraHash miner’s should be regulated from being operated by single entities, it’s our hope that they will take the right steps forward and be mindful of the impact they could create if Bitcoin’s are not distributed properly throughout the Bitcoin ecosystem.
Reeling it back in with a few words to consider when it comes to Bitcoin distribution, ideally everyone should start moving to Bitcoin and contribute to the growth and value of the virtual currency in their own way and not just sit on it. It’s not an egg and it’s not going to hatch into a magical millionaire, (unless you were among the first who got into Bitcoin in 2009, then you might have really made some good money so far.
As we said, it’s not reasonable to assume that everyone is going to become a millionaire from converting to Bitcoin, though with steady adoption and wide spread distribution, an even flow can aid Bitcoin into maturity.
Here’s a few questions to ask,
- What is the best and/or most effective way to distribute Bitcoin?
- What entities will safeguard the conversion of cash to BTC in the long run?
- Is it time that rules are created and applied to Bitcoin’s maturity?
- What can I do to help Bitcoin mature and reasonably secure my BTC future?
The answer to these questions are fairly simple and also very complex. In regards to massive distribution of Bitcoin, at BTC World News, we’ve said time and time again,
- An industry like Apple or Google enabling payment for it’s app’s via Bitcoin would start a wild fire of small BTC payments aggregating the core value of Bitcoin.
- It’s going to take a number of years for Bitcoin to mature and like many of you with children, start taking the time to teach them about money. Give them a Bitcoin wallet and tie it into a saving’s account with nothing in it and add some BTC to start. Teach them the principals of basic trading. (Sell high, buy low) The money they earn from trading and understanding how money works could easily fund their daily activities while teaching them about the responsibility of money and for that matter, BTC.
- Talk about Bitcoin to other’s who don’t know or don’t fully understand what Bitcoin is. Word of mouth is still the most popular means of getting the word out.
On a daily basis, we discuss Bitcoin with individuals several times a day. We take into consideration the old formula of the “1-9 ratio”. If you tell 1 person about something good, they’ll tell 9 others on average. We find it interesting that more times than not, people we speak with haven’t heard about Bitcoin or may have heard just a little bit about it.
Take the time to educate you’re peers about the advantages of Bitcoin, if anything they’ll think you’re just that much more in touch with the world or they’ll think your insane for investing in a get rich quick scheme, though either way, you’re taking the time to spread the word. The bottom line is, one thing everyone agree’s on is, the world is in financial trouble and needs a fresh start. Bitcoin offer’s the possibility of a sound world economy.
Regarding the comment of safeguarding the conversion of cash to BTC in the long run, that’s a topic for another article, but in summary, it’s ideal that these Exchanges are positioned as they are because it shifts control from the FDIC and similar entities and moves our money back to the private sector. And don’t take this article the wrong way, the Government should have their part in this also, though what part that is, is still under debate and once again, a topic for another day.
Also we’d like to point out that the number’s we detailed in this article are only a fragment of the whole financial schema and a generic basis of how Bitcoin can improve many global economic conditions. You might ask, what if the Governments just printed 4x amount of money, would that fix it? The answer is No. One reason why is because each country has it’s own rates. Think about the Peso compared to USD to the Rupee. These variances could never be equaled or leveled out in it’s present condition. For one, the different Governments would never agree on inflating or deflating a currency and who should chose what currency is the right value? Bitcoin on the other hand, started out as a world wide currency and has established a world wide value. This means, whereever you are in the world, 1.0 BTC maintains it’s value no matter where you are and with that said, we conclude our article on Bitcoin Distribution.
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