Tom Honzik on Nostr: Yesterday I had a conversation with a precoiner who was concerned that the bitcoin ...
Yesterday I had a conversation with a precoiner who was concerned that the bitcoin supply was too concentrated in the hands of a few people.
I explained that there is a trend toward distribution, but I think I should have asked her why the concentration bothered her in the first place.
If one person has a large portion of the bitcoin supply, they only have two main options:
-Lower their portion, by distributing the coins to others
-Keep holding, in which case the supply for everyone else is further restricted (it’s similar to if the coins were lost)
Maybe the concentration concern comes from a fiat/PoS mindset, that those with the most money can use their wealth to perpetually generate more money for themselves.
With PoW and a supply limit, this is no longer the case. To get more money, someone has to do work and provide value.
Perhaps it isn’t wealth inequality itself that bothers people, as much as it is the corrupted system surrounding it. And people have a hard time disassociating the two, because of the system we live in.
I explained that there is a trend toward distribution, but I think I should have asked her why the concentration bothered her in the first place.
If one person has a large portion of the bitcoin supply, they only have two main options:
-Lower their portion, by distributing the coins to others
-Keep holding, in which case the supply for everyone else is further restricted (it’s similar to if the coins were lost)
Maybe the concentration concern comes from a fiat/PoS mindset, that those with the most money can use their wealth to perpetually generate more money for themselves.
With PoW and a supply limit, this is no longer the case. To get more money, someone has to do work and provide value.
Perhaps it isn’t wealth inequality itself that bothers people, as much as it is the corrupted system surrounding it. And people have a hard time disassociating the two, because of the system we live in.