By We know that there is a limited supply of Bitcoin(BTC) available. Recently it was former Google Product Director Steve Lee who pointed out that only 1% of the world’s population can ever own more than 0.28 BTC.
“If you own 0.28 BTC and HODL, you can be certain no more than 1% of the current world’s population can ever own more BTC than you. A modest investment of $1,830 today can ensure you are a 1%er in a future Bitcoin world,” were Lee’s exact words.
That’s crazy, right? We think so too. What’s even crazier is the fact that in the years to come Bitcoin rarity will increase more due to more investors & firms acquiring the cryptocurrency thus reducing the number of individuals who could ever own one BTC.
Is The Bitcoin Supply Less Than 21 Million?
While we know that the fixed supply of the number of Bitcoin available sits at 21 million as per the hard-coded protocol of the cryptocurrency and this can not be changed, we have to take into account the loss of up to 4 million BTC due to theft, crypto jacking, loss of wallets & keys.
However, Kim Grauer, the Senior Economist at Chainalysis recently claimed that this lost supply of BTC is not taken into consideration by the market cap and this obviously means that the real price of BTC could be notably higher!
“That is a very complex question. On the one hand, direct calculations about market cap do not take lost coins into consideration. Considering how highly speculative this field is, those market cap calculations may make it into economic models of the market that impact spending activity,” Grauer explained.
That 0.28 BTC figure that we mentioned which was introduced by Lee takes the assumption that Bitcoin supply sits at 21 million as it divides the 21 million by 0.28 and divides that by the world population which sits at 7.442 billion. If Chainalysis’s research is accurate, and 4 to 6 million BTC are indeed lost this means that the total amount of BTC available actually sits at around 16 maybe 17 million.
Based on the figure of 17 million BTC being available means that only 0.8% of the population can own more than 0.28 BTC with less than 0.2% of the world population being able to own even 1 BTC.
Does This Make BTC Underpriced?
If we take into consideration the limited supply of BTC and the ever-increasing value of the digital currency, in the years to come, this 0.2 figure will notably diminish.
This fact that any investor in the global market can be part of this 1% with a $1,830 investment is a clear indication that the crypto market is still in its infancy. Take that fact and add to it adoption rate, market development, infrastructure & of course regulation and you’ll come to the conclusion that this sector still has exponential growth to come in both the mid term and long term.
Do you own BTC and agree with this? Let us know if you’re a part of this 1%!
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