From Bitcoin To Satoshis, How BTC’s Distribution Will Only Get Better
From Bitcoin to Satoshis, how BTC’s distribution will only get better
According to a recent CoinMetrics report, the early experiment of fair distribution with Bitcoin was ‘disastrous’ as transactions were settled as whole units of BTC. While the attached chart illustrates the transition of BTC to Sats (i.e Bitcoin to Satoshis), it should be noted that early wealth distribution left permanent damage since a lot of BTCs were lost. However, it was merely the beginning of a major change and BTC set the absolute precedent for digital asset convertibility.
Now, because Bitcoin carried a high level of volatility, its active supply velocity was all over the place over a majority of the previous decade.
Velocity measures the number of times an average unit of supply undergoes a transaction. Bitcoin’s velocity graph suggested that there was immense unmatched distribution, one wherein high supply turnover would wreck its price cycle. These were the early days of adoption when BTC would undergo staggering bullish rallies which would lead to further wealth distribution.
However, with more people getting their hands on Bitcoin, the larger financial space has started to take notice and FUD has risen. This is where the importance of halving cycles comes into the picture.
Full article here: https://eng.ambcrypto.com/bitcoin-satoshis-distribution/