Since there is no semblance of even distribution of #bitcoin, there are already not enough Bitcoin to get a single coin to every millionaire, and whales such as Mr. 100, MSTR, nations, etc, are holding hundreds, thousands, hundreds of thousands of coins, wouldn't a tiny fraction of a coin be more than enough, on a global Bitcoin standard, to retire incredibly wealthy? #asknostr #hopium
Discussion
What good is hodling 100,000 coins if it isn't eventually to leverage them by spending them into the economy?
As long as fiat is a medium of exchange, BTC will be the last resort. Gresham's Law IIRC.
I keep hearing people use gresham's law in reverse to argue for bitcoin
Educate me
Saifedean Ammous's argument, to paraphrase is: According to Gresham's Law, fiat currencies are inherently flawed due to inflation and government control. As Bitcoin adoption grows, people will increasingly hold Bitcoin (the "good money") and spend fiat (the "bad money"), eventually leading to a world where Bitcoin becomes the primary form of money. This gradual process, amplified by economic instability in fiat currencies, results in hyperbitcoinization.
Doesn't that track? I'm saying Bitcoin would be spent last since people want to get rid of fiat.
Yes, and that drives the value of fiat down at such a rate that eventually the average person/business won't accept it in pay/transactions.
Gresham's law is a law of the buyer in a transaction. The reverse of that applies to the seller. As long as there are two competing media of exchange operating in parallel, the unit of account will move to whichever medium is more predictable. When bitcoin becomes the unit of account, fiat is superfluous
I smell what you're steppin in. And I definitely see that being the case the more older heads/business owners get wise. The good news is some people will die on the hill that Bitcoin isn't money-the last bastion of the fiat system.
Can you be more specific other than an abstract warning of dire consequences?
I don't understand the question. I'm saying lots of old heads will either not trust the tech so never accept Bitcoin or they will never not trust the dollar for fear/ignorance of the capabilities of the new system.
"You smell what I'm steppin in"
🤣 nothing dire, I meant "I understand what you're saying". I pick up what you're putting down.
Getting back to your OP. I think my point is that eventually MSTR will be a liquidity provider and will be in the business of lending out bitcoin. But their bags will never be useful for that purpose until some low risk lendee comes along and will pay a premium for the privilege of servicing a loan on the bitcoin. Alternatively, MSTR could issue ecash tokens backed by their stash, and charge an issuance, redemption and/or transaction fee for using said tokens (e.g. cashu)
I've considered that for them, Blackrock, any company or organization with a large stack. I think once you have enough money, financial services would naturally fall into your coffer. I do not have much substantiation for that historically but it just seems logical to me. Any farmer eventually becomes salesman. Do I understand that correctly, that ecash is kind of being used as an iou but not as currency?
Ecash is backed by a promise, it has no direct control over anything on the blockchain (unlike lightning). Cashu anf Fedi are largely the same, tokens redeemable for bitcoin either by the holders of the fedi multisig onchain, or by the mint's lightning node (which may not have routable liquidity)
My mom: But you can't use bitcoin to buy a car.
me: if they want bitcoin, you can send it to them directly. Otherwise you can sell it as an asset for the currency that they want and give that to them.
It is an asset, AND it is transferable like currency! It has an added superpower.
Imagine trying to buy a car with Gold bars or stock certificates. (find a pawn shop, convert gold to cash).,,
Bitcoin exchanges are 24/7. It really is marvelous that the internet is used to exchange this asset as well as rails for the asset. It's like a perfect global marketplace of energy.
Your mom will never be a bitcoiner. Focus on the next generation
I assume that 21 sats will make a day's living in the far future. So yes you won't need a whole coin!