Yesterday saw what was gearing up to be an interesting debate on whether Bitcoin has a problem with wealth inequality. Stemming from a statistic provided by Civic CEO, Vinny Lingham, that 2% of wallet addresses hold 80% of BTC, it was countered by Interchange co-founder, Dan Held, and hosted by former Coinbase engineer, Preethi Kasireddy.
So… Does Bitcoin have a wealth distribution problem?
Before We Get To That, A Hypothetical Question
Before the debate started, the participants introduced themselves and their positions. Lingham questioned whether Bitcoin has lost sight of its end goal. Sadly, for the rest of the hour it felt like Lingham had lost sight of the end goal of the debate.
The problem was that he immediately posed, then continued to pressure Dan Held into confronting an extrapolated hypothetical situation. If bitcoin price magically hit $10 million today, would there be a problem?
Held pointed out that this was not realistic, and that HODL waves show that the distribution of BTC increases as price goes up. Naturally, because everyone has a price that they will sell at, and as profits increase HODLers will buy things with their gains.
This is not to mention that the market cap of Bitcoin would then be 6 times the total amount of narrow money in the world. If the assumed 50 million people who own bitcoin (less than 1% of worlds population), suddenly own 6/7 of the worlds money supply (which has essentially just added 600% to the previous total money supply), then of course, there will be a whole multitude of problems.
But that is clearly never going to happen. For starters, way before this point, the whole concept of fiat money becomes irrelevant. Lingham has either never heard of the Bitcoin time traveller,