Bitcoin’s Fixed Supply Ensures Only 1% of World Can Own Over 0.28 BTC
Former Google Product Director Steve Lee recently took to Twitter to discuss the limitations that consumers presently have with the cryptocurrency industry. He said,
“If you own 0.28 BTC and HODL, you can be certain no more than 1% of the current world's population can EVER own more BTC than you. A modest investment of $1,830 today can ensure you are a 1%er in a future Bitcoin world.”
It is no secret that Bitcoin was designed with the intention of having a limited supply. However, as miners slowly make additional Bitcoin available and become closer to the end. As this scarcity increases, it is possible that the total number of Bitcoin that could actually be held by investors is only 1 BTC. The fixed supply is capped off at 21 million BTC, which is programmed to prevent being altered.
If you own 0.28 BTC and HODL, you can be certain no more than 1% of the current world's population can EVER own more BTC than you. A modest investment of $1,830 today can ensure you are a 1%er in a future Bitcoin world. https://t.co/9k3XZa09Yo
— Steve Lee (@moneyball) October 2, 2018
The number keeps dwindling. Even though the blockchain is supposed to be able to keep up with every transaction involving Bitcoin, there are four million BTC that are forever lost. This number was discovered towards the end of 2017 by Chainalysis, which is a forensics company that evaluates blockchain technology, while monitoring cryptocurrency on it. The loss comes as a result of theft, loss of wallets or private keys, and Satoshi’s unused, and allegedly inactive, wallet.
At the time that these numbers were discovered, senior economist Kim Grauer at Chainalysis said that the lost amount wasn’t calculated into the market cap. Realistically, if that 4 to 6 million BTC was included, the actual price of BTC would most likely rise. However, Grauer commented,
“That is a very complex question. On the one hand, direct calculations about market cap do not take lost coins into consideration. Considering how highly speculative this field is, those market cap calculations may make it into economic models of the market that impact spending activity.”
The 0.28 BTC amount that Lee discussed is based on the idea that there is a 21 million BTC supply. That amount is first divided by 0.28 and then by 7.442 billion, due to the world’s population. If these calculations are correct, then the current supply should be about 16 to 17 million. That estimate means that less than 0.2% of the population will have the option to have over 1 BTC in their digital wallet.
With this information available, investors are posing a different question – should Bitcoin have a higher price? That 0.2% prediction should be diminishing substantially over the next few years. However, the availability for any investor to be within the 1% shows the cryptocurrency is still in the nascent level of progress. There’s plenty of room to grow from here.