- Bitcoin was born in myth and continues to dwell there.
- It’s too early to know if BTC will end up a hero or a villain.
- Bitcoin has a story to tell, but this isn’t a fantasy novel.
Bitcoin’s creation story borders on the mythological. A life-changing technology created by the pseudonymous, anonymous genius Satoshi Nakamoto, who then vanished out of sight.
With that in mind, is it any surprise that much of the bitcoin hopium continues to be fuelled by well-meaning fantasy?
Here are five Bitcoin myths that just won’t die…
Bitcoin Will Redistribute Wealth
Many people believe bitcoin will trigger a redistribution of wealth the likes of which the world has never seen. But maybe the reason the world has never seen such a thing is because there’s no good reason for it to happen.
Bitcoiners would like to believe the reason much of the world still lives in poverty is due to a simple lack of the technical apparatus required to reverse it. The implication here is that we’re just as noble and decent as we need to be, but don’t have the technology to put our decency into action.
The Pareto Distribution describes the tendency for natural inequality among the organisms on our planet. Just 20% of the trees in a forest gobble up 80% of the available nutrients from the surrounding earth. Likewise, 20% of the pea-pods in a garden produce 80% of the peas. The most desirable 20% of the men sleep with 80% of the women.
Numerous studies have shown that a majority of the world’s bitcoin is already concentrated in the hands of the few. This should not be a surprise.
The price of Bitcoin has become the gravitational center for the whole of what we call ‘blockchain’ or ‘cryptocurrency’. Yet, if bitcoin really is to be the nature-correcting mechanism its proponents claim, its price relative to the U.S. dollar should be irrelevant.
The reason so much focus is given to the price of bitcoin is…