[2014-01-14] Bitcoin/USD: Citibank: Rank inequality in bitcoin holdings

[patricktim]

http://invezz.com/news/forex/8047-bitcoin-usd-citibank-rank-inequality-in-bitcoin-holdings

Over the weekend, the BTC/USD briefly topped the psychological mark of $1,000 on the Mt Gox exchange, after the acceptance of the crypto-currency by Overstock.com proved to be a big success.

[howardb]

Lol, that analysis reads "I missed the boat, so sink it!"

[odolvlobo]

Standard noob failure, thinking that the value of Bitcoin is equal to the value of its currency. Its a stupid analysis anyway because it excludes people that don't own bitcoins at all.

[BitDreams]

The same could be said of almost any stock listed on the S&P500 during its pre-ipo stage. Citi should know, they've done plenty of IPO's, well not Bitcoin but...

[Bitware]

Bitware: Rank inequality in USD holdings...

[lumierre]

I see no problem with BTC distribution. Without those early hoarders, adopters and innovators, Bitcoin wouldn't reach this high. They also took the risk spending time and/or money with a technology never seen before. Satoshi has every right to hold a billion dollars worth of bitcoin. Lastly, Bitcoin could be viewed from a stock perspective. Founders who built the stock usually have the largest holdings. Just look at Mark Zuckerberg (Facebook), Larry Page, and Sergey Brin (Google). They're billionaires now along with the early investors who helped them build their company.

[patricktim]

Do we need equality in distribution?

[howardb]

Do we need equality in distribution?

No we don't, but the higher the market cap of BTC goes, the more systemic risk a single large holding represents to the overall price stability. There is no liquidity issue due to the divisibility of BTC either.