Post
Topic
Board Speculation
Re: The ultimate bitcoin taboo topic
by
DeathAndTaxes
on 03/09/2013, 21:57:25 UTC
ITT I see people confused wealth with money supply.  Nobody rich has any significant portion of their wealth in currency, they have their wealth in appreciating assets (companies, bonds, equities, commodities, royalty contracts, precious metals, etc).   Even if Bitcoin replaced all forms of currency on the planet it would still be a small % of the wealth in the world.  The Bitcoin "rich" would diversify into other assets and the distribution of the money supply would become more diverse.

The total global wealth is ~$233T.
The total global currency (M0) is ~$5T.

Say Bitcoin replaces all other forms of currency (a pipe dream) and the value of all Bitcoins is is someday worth ~$5T.  Lets also assume the richest Bitcoiner alive has 10% of that or ~$0.5T worth.  Yes $500B is a large amount, but it is <0.2% of the world's wealth.  That would also assume the "Bitcoin rich" never exchange Bitcoins for goods/service or other fiat currency along the way.   I think it is hillariously funny to imagine some fiat broke, Bitcoin rich guy living in his mom's basement refusing to liquidate 10% of his coins because they are "only" worth a million USD "but mom someday I could be a trillionaire, how stupid would it be to sell now for mere millions".