A simple thought experiment reveals that if all the Bitcoins in existence were to be distributed evenly across the people of the Earth, then there would only be BTC 0.0023 for each person, worth USD 15 as of this writing on 3 October 2018. This stat is calculated from the world population being 7.5 billion, while at this time there are 17.3 million Bitcoins in circulation.
Bitcoin’s circulating supply has been steadily increasing due to mining but eventually, Bitcoin’s supply will reach the maximum hard cap of 21 million coins around the year 2,140. The United Nations (UN) and United States Census Bureau (USCB) make projections for global population out to the year 2,050 and both suggest the world population will be around 9.5 billion. So if these forecasts are accurate, there will be 0.0022 Bitcoins per person in the year 2,050, slightly less than today.
Bitcoin News was motivated to conduct this thought experiment by a statement from Google Product Director Steve Lee. He said, “If you own BTC 0.28 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 USD 1,830 today can ensure you are a 1%er in a future Bitcoin world.”
This is in agreement with the self-proclaimed time traveler who posted remarkably accurate Bitcoin price forecasts on Reddit years ahead of time. The Redditor said in the future, Bitcoin will be the only global currency and anyone with 0.1 Bitcoin will be super wealthy, 0.01 Bitcoin is enough to retire and live comfortably and 0.001 Bitcoin is an average person’s life savings.
While the time traveler’s post seems like a fantasy, the simple calculations in this article reveal that if Bitcoin became the dominant global currency, then most people would have less than 0.01 Bitcoin. Many Bitcoin experts suggest that Hyperbitcoinization, where Bitcoin becomes far superior to fiat in terms of usage, is inevitable long term.
To make a long story short, fiat currency has multiple points of failure, while Bitcoin is decentralized and has no single point of failure. Fiat currencies can be manipulated and lose value due to central banks trying to balance the government’s budget, while Bitcoin has no central organization that can manipulate its currency supply. Therefore, fiat currencies generally devalue long term, while Bitcoin holds or gains value.
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