I read an article today about bitcoin and it’s unfair distribution of coins. Basically there are a few wallets including Satoshi’s that hold a treasure trove of bitcoin. In summation the author is concerned of an attack or a crash of the supply of bitcoin upon the market place.
This argument has been in place forever including concerns about Satoshi selling his entire stake and imploding the bitcoin market. These concerns haven’t materialized which leads many to believe that it’s founder is sleeping with the fishes. I also don’t believe this to be the case.
Rather, understand the bigger picture at play. When bitcoin was invented the financial world was a dangerous place to disrupt. Greedy men don’t like competition. This group of bitcoin shadow coders went through many attacks of character and of the physical variety.
Understand that when it comes to money and politics there are some very evil forces at play. They pass laws for the average people yet deem themselves above the very laws they pass. Not to mention many of them like the status quo as it is. It’s no wonder that the same policies of the 70’s are still being deployed to this day.
Which leads us to the diamond hands of bitcoin. Some of these wallet holders are well known including Satoshi. While others are unknown. Yet, these hands all have one thing in common. Many are still HODLING to this day.
The bitcoin market has grown through leaps and bounds over the last decade. Not to mention the excess liquidity that is being created daily. At it’s core the market itself has matured and is truly sustainable.
Although, volatility is an issue that many encounter on a daily basis. And as it is this will remain an issue for the foreseeable future. Yet, every blockchain network will encounter a similar journey that bitcoin has.
Distribution of value in a fair and equitable manner is something that impacts everyone. We see these distribution issues in the legacy system on a daily basis. Stock wealth increases the very few in our society while the rest have very little capital to invest. Not to mention most of the wealthy issue IPO’s while the lay person could never participate.
So what can we learn from the shortcomings of the legacy system. Well, for starters all inclusivity. Many in society can’t obtain large credit lines or have access to zero interest rate financing. Reasons include: lack of collateral, wrong background, not knowing the right people, poor credit score etc.
Ultimately this leads to the poverty loop of dead end jobs and the proverbial cash flow nightmare. Many including families are stuck in this rat race of perpetual debt and sinking fiat balances. Financial education can only do so much when the legacy system itself is designed this way.
Which leads me back to bitcoin. In the coming years there will be many who will complain of the distribution of coins. Many including the author of the article are pointing this issue as it is. Ok, so it is a fair assessment. Yet, to be fair many of these early investors took a risk when no one else would.
It would only seem fair that they would be fairly compensated for taking this risk including Satoshi. Without many of these early pioneers bitcoin would have been dead years ago. Yet, aside from being digital gold there will be a bigger plan for bitcoin.
I’ve spoken a little about inflationary tokens that are starting to sprout up through various blockchains. Understand that in order to allow all inclusivity into the blockchain ecosystem things must be made easy for all people. This includes the ability to earn crypto as opposed to just investing.
Although many of these tokens may be shit they may be airdropped or earned via gaming. In turn people will have a choice between HODLING or trading into bitcoin. This will also allow a fairer distribution of bitcoin since many of these tokens will be earned.
Since they are earned success will depend on the level of user engagement for the specific blockchain. The more work you put into your virtual activities the more bitcoin the user can accumulate. This in turn may push prices higher since inflation tokens are meant to be traded as opposed to HODLING.
As time passes we may see a fairer distribution of the network. Since this is a work in progress no one really knows for sure. However, let us not forget that bitcoin is not the only game in town. And that is the beauty of blockchain; if you don’t like it use another crypto chain. :)