Replying to anonymous

#bitcoin, serious question: how do you solve the problem that coins continue to be taken out of circulation by a few big hoarders with a lot of money in reserve?

The way I understand it, the people who need to start *using* their bitcoin first aren't the one who will massively hoard. (Just as with money now.)
Avatar
bitcoin.rocks 2y ago

I don't think Bitcoin really solves Pareto distribution.

Over time the trend is definitely whales distributing their coins as their value goes up, but it's not guaranteed.

Reply to this note

Please Login to reply.

Discussion

70
anonymous 2y ago

Okay, so there is an assumption that 'whales' will continue/reinvigorate the circulation.

Because, the thing with digital assets is also: if you lose your keys, these coins will be locked for a long time. And the very admirable trend #bitcoin uses to converge towards the 21 million coins and then you have a mathematically guaranteed supply, does not (and arguably *should not*) correct for human accidents, but that does not mean that there is a undeniable and unremovable factor that reduces circulation. (Talking specifically about the loss case.)

And my first point demotivates circulation, which is healthiest with a most balanced distribution. (Balanced as in evenly distributed number of coins.)