Is there enough Bitcoin to go around???

00:00 he one is there enough Bitcoin to go 00:03 around if the entire world is using 00:06 Bitcoin for every single transaction 00:08 everywhere in the world all the time 00:09 it's the only worldwide currency is 00:12 there enough Bitcoin to go around to 00:14 serve that purpose and what if some of 00:16 the Bitcoin is permanently lost now we 00:18 know some of it is permanently lost but 00:20 some people estimate as much three or 00:22 four million Bitcoin out of 21 million 00:25 are permanently lost even though I think 00:27 that number is too high even if it's a 00:28 million what if some of the bit is 00:30 permanently lost forever uh is that a 00:33 problem uh the answer is there is plenty 00:36 of Bitcoin to go around it could serve 00:38 as the UN the money of the entire world 00:41 and it actually doesn't matter if some 00:44 of the Bitcoin is lost forever and I 00:46 want to explain why because this is a 00:47 concept that a lot of people have a hard 00:49 time understanding because it's not easy 00:51 to follow so with any money you need the 00:54 money to be portable so you can send it 00:56 over over uh over space you need it to 00:59 be durable so keeps value over time and 01:02 you need it to be divisible so that it 01:05 can be divided into subunits so that if 01:08 you you know want to buy an egg you can 01:11 use a small amount for an egg if you 01:12 want to buy a house you can use a large 01:14 amount for a house so as long as money 01:16 if we just use two of those three if we 01:18 take the uh the durable part off the 01:20 table then that leaves you with 01:23 divisibility and portability so as long 01:27 as the money is is uh is divisible and 01:30 it is portable any amount of any money 01:34 can be used to uh run an economy as long 01:37 as it is scarce enough which is the one 01:40 sort of overarching macro thing so let 01:43 me tell you what I mean we could run the 01:45 entire world economic system that runs 01:48 on the US dollar we could run that 01:50 entire system on a single US dollar one 01:54 US dollar if that one US dollar was 01:57 divisible enough now right now it's not 01:59 because the US dollar is only visible 02:00 into 100 pennies obviously you can't run 02:03 an economy if your entire monetary unit 02:05 is a single dollar and 100 pennies you 02:07 can't run it but if we divided a single 02:10 US dollar into nanop pennies and Pico 02:14 pennies and uh you know whatever micro 02:18 pennies if we subdivided the US dollar 02:21 into quadrillions of subunits you could 02:24 run the entire economy on a single US 02:27 dollar again the question is is it 02:29 scarce you can't can't do that if you're 02:31 going to turn around and print a second 02:33 dollar or a5th dollar or a$1 100th but 02:36 if the entire thing was limited to $1 02:38 and if they only printed more money at a 02:41 rate of a few pennies per year again 02:44 subdivided into a gazillion sub pennies 02:46 then you could run the entire economy on 02:48 that so once you understand that you 02:50 realize you can run the entire economy 02:52 of the entire world on 21 million 02:54 Bitcoin your only questions are is it 02:56 divisible enough so yes a Bitcoin can be 02:59 uh subdivided into 100 million units 03:02 called satoshi's and when Satoshi 03:04 Nakamoto the inventor of Bitcoin 03:06 invented Bitcoin he anticipated that it 03:08 would be used for the entire world 03:10 economy so he added up all of the money 03:14 in the entire world that's used by 03:16 everyone for everything in all economies 03:18 and then he set the basic unit the 03:20 smallest unit of a Bitcoin which is one 03:22 Satoshi which is one 100 millionth of a 03:25 Bitcoin he set that equal to about one 03:29 US penny assuming that the uh you know 03:34 that uh Bitcoin was World used worldwide 03:37 so now right now uh a Bitcoin is worth a 03:41 Satoshi you can get about 10 Satoshi for 03:43 a penny so even with his early math he 03:45 anticipated that Bitcoin would increase 03:47 in value by 10 times its current value 03:50 and there's been a ton of inflation 03:51 since that formula was worked out 03:53 between 200 2007 and 2008 and so 03:57 honestly you'd need it you know you need 03:58 Bitcoin to be probably 20 times its 04:01 current value 20 20 times 2,000% growth 04:06 even to get close to what satosi 04:08 Nakamoto originally anticipated okay but 04:11 regardless he also set it up where 04:13 Bitcoin could be further subdivided if 04:16 necessary so it could be actually 04:17 subdivided into smaller units so what 04:20 happens when you permanently lose a 04:22 Bitcoin let's say you start with 21 04:24 million Bitcoin and then somebody loses 04:26 a million of them so about let's call it 04:29 roughly 5% of the a little less than 5% 04:31 of the total Supply gone for good 04:33 disappears from the world lost in a 04:35 landfill you know lost forever what 04:37 happens well what happens is all of the 04:40 remaining Bitcoin becomes slightly more 04:43 valuable it's uh the way Satoshi 04:45 Nakamoto the inventor of Bitcoin 04:46 described it is when you permanently 04:49 lose Bitcoin it's like giving a little 04:51 gift to every single person who still 04:54 owns Bitcoin in the world and if you own 04:57 a lot of Bitcoin you get uh more of that 04:59 gift if you own a little Bitcoin you get 05:01 less of that gift it's called prata you 05:04 get a prata share so if if 5% of all of 05:08 the Bitcoin that's that will ever exist 05:10 is lost that means that everybody's 05:13 Bitcoin in the entire world is now 5% 05:17 more valuable so um so and someone asked 05:21 in the chat where am I living I 05:22 obviously live in Madison I travel 05:24 frequently to the island of Raton uh in 05:27 the Caribbean for the Prosper project 05:29 down there uh but right now my primary 05:31 home base is Madison Mississippi uh just 05:33 like it always has been so to answer a a 05:36 question live 05:38 here so um the uh so to to sort of 05:42 rewind um so yes Bitcoin any amount of 05:46 Bitcoin is usable for the entire world's 05:49 money if it needs to be more subdivided 05:52 than 100 million units it can be just 05:55 like if the US penny had to be divided 05:57 into tenth of a penny that's easy to do 05:60 it doesn't break anything if you divide 06:02 pennies into one1 of of a penny um just 06:06 like with a pizza if you have a pizza 06:08 and somebody 06:10 says well how many slices you know how 06:12 hungry are you because it determines how 06:14 many slices I divide it into the answer 06:16 is well that has no bearing on the 06:19 calories in the pizza whether you divide 06:21 it into eight slices 10 slices or 16 06:23 slices the slices just get smaller but 06:25 what matters when you're eating a pizza 06:27 is what percent of the hole do I have so 06:30 when you have US dollars what matters is 06:32 what percent of all the US dollars does 06:34 this dollar represent when you own 06:36 Bitcoin what matters is what percent of 06:39 all the Bitcoin in the world does my 06:41 Bitcoin represent all money works that 06:43 way the value of it including gold when 06:46 you have an ounce of gold the value of 06:48 that ounce of gold is heavily determined 06:51 by it's obviously determined on supply 06:53 and demand as well but the scarcity 06:56 is so much does that one ounce of gold 06:59 represent as compared to all the gold in 07:01 the world so when you're thinking about 07:03 a money that is what the concept you 07:05 have to understand is any amount of 07:07 money can be used um it's just a matter 07:10 of is it limited or how fast does that 07:13 amount of money grow in the case of 07:14 Bitcoin there's only over 21 million in 07:16 the case of gold it grows about 2% per 07:19 year that's the amount of new gold that 07:21 gets dug out of the ground every single 07:22 year is about 2% so in the case of gold 07:24 it's about 07:25 2% um in the case of uh the US dollar 07:29 it's about 7% on average over the last 07:32 100 plus years the US government has 07:34 printed about 7% more US dollars every 07:37 single year on average so the growth 07:40 rate of Bitcoin is uh trending toward 07:43 zero it's 75% now but it's it'll 07:45 ultimately land at zero with only 21 07:48 million Bitcoin so you've got you know 07:50 basically the absolute Supply cap of 07:52 Bitcoin you know the growth rate is zero 07:55 the growth rate of gold is 2% the growth 07:57 rate of the US dollar is 7% most of 07:60 world's uh Fiat currencies which means 08:02 government madeup currencies are growing 08:04 at about 14% a year um so that's why 08:07 they're losing value so quickly so um to 08:09 sort of recap any amount of money can be 08:12 used it doesn't matter if if I if I take 08:15 a $100 bill and I tie it around a rock 08:19 throw it into the RO Reservoir everybody 08:23 else's US Dollars become a tiny tiny 08:26 tiny little bit more valuable because 08:29 that 100 will never resurface that $100 08:32 is now out of circulation now the amount 08:35 everybody's money increases in value is 08:37 equivalent to that $100 bill as a 08:40 percentage of all the US dollars in the 08:42 world which is tens of trillions so 08:45 obviously nobody would even notice now 08:47 if 5% of the Bitcoin in the world was 08:50 unrecoverable meaning no one was ever 08:52 figure out figured out how to access it 08:54 or if it was permanently Lost first of 08:56 all that's already factored into the 08:58 price and second uh um you know it would 09:01 be a 5% sort of a 5% uplift to the price 09:03 of Bitcoin over time but which is a lot 09:05 more than throwing a $100 bill you know 09:07 in in the reservoir still a you know 09:10 still a pretty small percentage overall 09:12 so it does not matter if Bitcoin is lost 09:17 because all that happens is the value of 09:20 the remaining Bitcoin increases to 09:23 absorb the value that was lost or 09:27 unrecoverable I was going to go into 09:29 some details as far as uh you know the 09:32 visibility and portability of gold and 09:34 other Fiat currencies but uh I think I 09:37 will probably save that for another 09:38 video um so uh so to summarize here 09:42 though on this front um some people 09:45 including Michael sailor who owns more 09:47 than 177,000 Bitcoin so he owns billions 09:50 of dollars of Bitcoin he has 09:53 hypothesized that rather than losing 09:55 Bitcoin if you want to gift value to the 09:59 world Pro rat it to everyone you can you 10:02 know if you don't want to leave it to 10:04 your you know descendants in a will you 10:07 can just destroy your Bitcoin Bitcoin 10:09 now people like um uh you know the vast 10:14 majority of people would not willingly 10:16 destroy Bitcoin and what I was going to 10:17 say earlier is a product like bitkey bit 10:20 T ke Y which is their website is bit 10:22 key. world that sort of product will not 10:25 let you destroy Bitcoin uh it's built so 10:27 that you can't destroy the Bitcoin so 10:29 that you can't accidentally lose it you 10:31 can't accidentally you know uh you know 10:34 have it disappear or be unrecoverable so 10:36 products like bit key will not let you 10:38 destroy Bitcoin but if you use something 10:40 like a ledger or a treaser which are 10:42 also other Bitcoin Hardware devices uh 10:45 they they don't stop you from destroying 10:46 it so if you got one of those devices 10:48 transferred all your Bitcoin to it 10:50 smashed it with a hammer and then burned 10:52 the seed phrase your Bitcoin would be 10:54 gone forever no that's why I recommend 10:57 products like bitkey because it's 10:58 impossible to accidentally D your 10:60 Bitcoin it's also impossible to destroy 11:02 your Bitcoin on purpose which again bit 11:04 key was designed so that you couldn't 11:06 screw it up and one way of making sure 11:08 you can't screw it up is making sure the 11:10 Bitcoin can never be destroyed but if 11:11 somebody wanted to destroy their Bitcoin 11:14 they could use a ledger or a treaser or 11:16 something like that to permanently 11:18 destroy or not destroy their Bitcoin but 11:20 to make it unrecoverable it will always 11:22 be there on the blockchain but if nobody 11:24 can get access to it then it just sits 11:25 there forever um so it's you know it's 11:28 basically permanently lost even though 11:29 there it's unrecoverable it's unusable 11:32 but anyway so some people including 11:33 Michael sailor have hypothesized that if 11:36 somebody has a ton of Bitcoin and they 11:38 don't know who to give it to and they 11:40 don't feel good about giving it to 11:41 everyone there's actually a way in 11:43 Bitcoin which is UN unavailable in every 11:46 other mechanism of value there's 11:48 actually a way that you can gift the 11:50 value of your Bitcoin to everyone in the 11:53 world that owns Bitcoin prata means you 11:56 know uh in equal share uh depending on 11:59 how much Bitcoin they they own and 12:00 that's by literally just destroying it 12:02 and if you destroyed it the value of 12:05 everyone else's Bitcoin would go up a 12:07 tiny little bit based on how much you 12:09 had as a percent of the total so if 12:11 somebody who owned you know one 100th of 12:14 one% of all the Bitcoin decided that 12:16 they wanted to effectively gift that 12:18 Bitcoin to everyone else Pro and they 12:21 destroyed Bitcoin equivalent to one 100 12:23 1% of all the Bitcoin in the world then 12:26 everyone else's Bitcoin would increase 12:28 in value over time 12:30 by 1 100th of 1% because that Bitcoin 12:33 would be out of circulation so hopefully 12:36 that helps you understand that we don't 12:38 have to worry about there not being 12:40 enough Bitcoin to go around we don't 12:42 have to worry about the old Bitcoin back 12:45 from 20 200920 2011 when it was hard the 12:49 technology was not very uh Advanced or 12:52 sophisticated to store Bitcoin 12:55 effectively so the Bitcoin that got lost 12:57 in the very early days when it was so 12:59 new that it didn't even have a price and 13:02 because it didn't have a price people 13:03 were not even worried about preserving 13:05 its value because they didn't think it 13:06 had value so they might have had you 13:09 know a th000 Bitcoin but it was 13:11 literally worthless so they just threw 13:13 it away with their old computer because 13:14 they're like well it doesn't have a 13:16 price and if it doesn't have a price now 13:17 maybe it'll never have a price and so 13:19 they just thrw it away and if those 13:21 1,000 Bitcoin or 8,000 Bitcoin are gone 13:24 for good it just makes the rest of our 13:26 Bitcoin more valuable for all of us who 13:29 still have bit coin so that's the way 13:31 that works I know it's a hard concept 13:32 it's a really hard concept for people to 13:34 understand that any amount of a money 13:36 can be used as money as long as the new 13:39 issuance meaning the new additional 13:40 money that's created as long as that is 13:42 limited and as long as the money itself 13:46 is Affordable and as long as it is um 13:50 divisible it is sufficient as money and 13:53 Bitcoin has those characteristics better 13:56 than any other asset in the entire world 13:58 it is Bitcoin is more scarce more 13:60 divisible more durable more pable than 14:03 any other money that humans have ever 14:05 invented or discovered in human history 14:08 and that's why Bitcoin will be the 14:09 future monetary system of the world is 14:11 because it has better monetary 14:13 properties than anything else that 14:15 exists anywhere in the world and because 14:17 it has better monetary properties than 14:19 anything else that exists anywhere in 14:20 the world that's why Bitcoin is uh will 14:23 ultimately become the future monetary 14:25 system of the world and it's well on its 14:26 way uh to doing that already so I'll uh 14:29 I'll I'll share some additional details 14:31 about how Fiat currencies are you know 14:34 not are are getting so bad that they are 14:37 not even portable anymore I'll share 14:38 some details about that in a separate 14:40 video thanks everyone