Lost Bitcoin Pays Dividends
Did you know ~20% of all mined Bitcoin are likely lost already?
Now, a little over a decade since the Bitcoin whitepaper was written and distributed, more than 18 million Bitcoin have been “minted”.
A portion of those Bitcoins are either lost, forgotten or unobtainable. As a result, reducing the total amount in circulation. Although this is heartbreaking news for owners of the once accessible coins, it’s actually wonderful news for the rest of Bitcoin holders.
Most fiat currencies fall within the framework of the inflationary model of currency valuation. If a war breaks out or a country needs to bail out a TBTF (Too Big To Fail) institution, historically the solution has been to print more money or borrow more money and then print more to pay it back. This causes inflation and degrades the quality of life for those living within the parameters of such a model.
Bitcoin, on the other hand, works from a diametrically opposed deflationary method of currency value. Since there are only 21 million Bitcoin that can ever exist, inflation cannot occur. Therefore, Bitcoin’s scarcity alone adds intrinsic value to the digital asset as each time coins become inaccessible (eg. lost), all other Satoshis become more of a rarity, more sought after and more valuable.
So remember, hold on for dear life or your lost Bitcoin could pay for someone else’s Lambo!
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