Subnostr

The significance lies in the trend rather than the current state. In traditional fiat systems, wealth increasingly accumulates among the top 1% (refer to image 1). Conversely, Bitcoin demonstrates a trend where wealth is progressively distributed to the lower echelons (refer to image 2). Envisioning a complete Bitcoin standard, wealth would flow towards the productive, contrasting with the current scenario where proximity to the money printer determines wealth distribution.

See also this analysis for more info on Bitcoin distribution trends:

https://insights.glassnode.com/bitcoin-supply-distribution-revisited/amp/

„An increasingly large proportion of supply is held by smaller entities representative of retail holders, with Shrimps (< 1BTC) and Crabs (< 10 BTC) absorbing a remarkable 2.25x more coins than were mined in 2022.“

anonymous 2y ago

Hmm.. you make an interesting remark: my thought process includes the transition period in which a monetary currency is also at play. There is the weakness probably, because it becomes an arms race for being the one who can hoard the longest. However, with only Bitcoin in circulation -- or rather #Bitcoin as lead currency -- one would need to spend to get anything accomplished.

And quickly thinking ahead, this should hold even if on a local level any other coin or currency is applied, and Bitcoin is a global currency.

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Discussion

StackSats ⚡️ 2y ago

Certainly, in a Bitcoin standard, productivity becomes pivotal for wealth preservation, as it naturally gravitates toward the industrious. Notably, even during the transitional phase, glassnode analysis reveals an increasing absorption of Bitcoin by lower brackets. This phenomenon may stem from the realization that wealth isn't merely about money but the experiences and investments it affords. As people accumulate, they tend to channel resources into enriching their lives, be it through real estate, travel, or supporting innovative Bitcoin startups aimed at fostering positive change. Dispelling the myth, it seems people are inclined to deploy their wealth rather than hoard it excessively.