Reading: How Much Bitcoin You’d Get If All 21 Million Were Distributed Worldwide
It is not a secret that Bitcoin is one of the scarcest assets out there. But have you wondered how rare the largest cryptocurrency really is?
THERE IS SO MUCH ROOM FOR BITCOIN ADOPTION
Imagine if a new global regime would rise out of nowhere to rule the world through a UN-like body and decided that everyone should be equal. More than that, this new body would endorse Bitcoin as a legitimate currency and would distribute it to everyone. While this defies Bitcoin’s decentralized nature, how much BTC would each individual get anyway?
Well, the world’s population is almost 7.8 billion according to Worldometer, and Bitcoin’s current supply is 18,240,387. That means that each person would end up with 0.00233851 BTC or 233,851 satoshis. Considering today’s BTC price at around $8,845, that amount would be worth about $20. Not that much, right? This demonstrates that there is still much room left for Bitcoin adoption.
According to the Bitcoin distribution chart, there are over 21 million addresses worth at least $1 worth of Bitcoin. That’s only 0.27 of the world’s current population.
You should take into account that we ignored companies, legal persons, institutional investors, governments, and all kinds of organizations that might also own Bitcoin. If the “world government” would grant Bitcoins to companies and legal persons as well, then each entity would get way less Bitcoin.
WHAT ABOUT FIAT CURRENCIES?
If US dollars would be distributed equally among the world population, then each individual would get around $435, given that the total value of all US banknotes and coins is about $3.4 trillion, according to Fed data that is not updated anymore.
However, the USD supply also involves digital dollars. Think about bank deposits, online transfers, and all the fiat dollars held digitally. For this, we should consider the M2 supply measure, which is $15.5 trillion as of the end of 2019. If all US dollars, including the less liquid ones, would be distributed equally, then everyone would get around $1,990. That’s 100 times more than the Bitcoin value mentioned earlier.
What do you think about the Bitcoin scarcity? Share your thoughts in the comments section!
Images via Shutterstock, US Federal Reserve Bank
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