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Today there are 18,244,475 BTC in circulation and during the last few weeks, a number of bitcoin influencers have been talking about how much is needed to be included in Bitcoin’s top 1% of holders. For instance, according to Blockworks Group analyst Jake Levison, if you own 0.28 BTC “you’re statistically guaranteed to be in the richest 1% of the world in BTC terms.” Regardless of the amount of BTC required to qualify as a one-percenter, it’s a debate that has raged on for years.
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Every country has its own currency. Estonia and the Eurozone have the Euro, Russia has the Rouble and the USA have US Dollars. We exchange money in banks or specialized foreign exchanges, transfer it worldwide and invest it. In our times of technological innovation it is safe to say that most, if not all money transfers are conducted through the Internet. Is it then such a great surprise that an online currency such as Bitcoin has emerged? Interest in the currency has grown towards the end of 2013 due to significant spikes in the currency’s value, but let’s start from the beginning.
In 2009, an unknown programmer by the name of Satoshi Nakamoto put forward a whitepaper that proposed a creation of new form of digital currency – cryptocurrency. Cryptocurrency functions the same way as regular currencies do in that its used as a means of exchange, unit of account and a store of value. Cryptocurrency, just like other resources, has some demand for it, and subsequently a market price. The significant difference is Bitcoin’s intangibility – there is no bank-issued notes or papers – meaning that rather being used in hand-to-hand transactions, Bitcoins are stored and exchanged digitally within a decentralized, peer-to-peer network.
