We support the separation of Bitcoin and the Foundation
The famous occupy Wall Street movement focused on something very immediate and absurd about modern economics. The numbers are not exact, but the suggestion is that 99% of the population owns 1% of the money. This creates a massive and disturbing social shift as well as a polarity in the financial distribution. But this same spread is being realized in Bitcoin, the famous digital currency that is sweeping the nation.
Crypotcurrency OwnershipA December 2013 Business insider report states that 47 people own 30% of ALL Bitcoins. Yes, that is not 47,000 but just 47. This gives just a handful of people over a quarter of all the control of Bitcoin valuation. Now the spread is not directly related to its cost. But this kind of stranglehold over the Bitcoin market is alienating. It makes people want to stay away from it. It also can make drastic changes in value occur overnight.
Part of the appeal of Bitcoins is that they do not function like generic wavering stocks. The future of the system is in establishing some type of consistent value. Drastic changes make people scared of Bitcoin. They want nothing to do with a system that can cut the value of 1 to .5 in an hour. This type of inflation is what makes the US dollar so concerning. What Can be Done About ItSo what does this mean for the longevity of the famous digital currency? Economics is always present no matter if the currency is digital or tangible. A system built in this manner could disrupt the health of the economy, just as it is hurting the middle class in America. Hopefully, Bitcoin will ‘even out’ in some capacity.
Fortunately, more and more coins are being added to the system until it caps out in what is expected to be 2017. When the Bitcoin allocation ends, the system will likely level out as the commodity becomes less immediate. So the answer to this spread is to wait the system out. If this spread continues, Bitcoin does not have a particularly healthy future. Otherwise, patience is a virtue.