You’ve likely heard that Bitcoin is limited to 21 million units. So, with only 21 million units and a global population of around 8 billion people, does that mean Bitcoin is a terrible currency because there won’t be enough for everyone, right?
Not at all! That’s a common misconception and one of the biggest myths about Bitcoin.
In this article, we’ll examine whether there’s truly enough Bitcoin for everyone and how it could be distributed over time.
Let’s dive in!
Table of contents:
Will there be enough Bitcoin for everyone? Is there a limit?
“There’s not enough Bitcoin for everyone; Bitcoin is limited to 21 million units, and there are 8 billion people in the world. That means there are 380 times more people than there are whole Bitcoins to go around.”
You’ve probably heard statements like this before. But let’s break down why it’s a misconception.
First, a whole Bitcoin is simply a unit of measurement. Just as a ton is made up of 1,000 kilograms, one Bitcoin consists of 100 million satoshis. This means the total supply of Bitcoin is 2.1 quadrillion satoshis—more than enough to function as a global monetary standard.
Read here: what are Sats in Bitcoin?
In fact, there are far more satoshis than there are dollars in the world, making Bitcoin well-equipped to meet global demand.
If Bitcoin becomes a global monetary standard, most people could hold significant amounts of satoshis rather than entire Bitcoins. Its divisibility allows Bitcoin to appreciate in value while still being practical as a unit of account worldwide.
To put it in perspective, think of buying gold: you don’t need to purchase an entire gold bar if it’s beyond your budget. Instead, you can buy smaller portions, like gold ounces, and gradually accumulate more until you reach a larger quantity.
The same concept applies to Bitcoin. You don’t need to buy a whole Bitcoin—you can start with fractions and accumulate satoshis over time.
In the future, owning an entire Bitcoin may be an extraordinary rarity!
Will Bitcoin be centralized in the hands of a few?
You might be wondering, “What’s the point of buying satoshis if most Bitcoins have already been mined? Won’t they end up centralized in the hands of a few?”
In reality, owning a large amount of Bitcoin doesn’t centralize the network. This is because Bitcoin’s consensus mechanism relies on proof of work (PoW), where those with greater computational power have a higher chance of mining a block.
To centralize Bitcoin, you’d need massive computational power and energy. However, energy is inherently decentralized, distributed across the planet—and even the universe.
Even Satoshi Nakamoto, who holds a significant amount of Bitcoin, or Michael Saylor, cannot control the network, which is maintained globally through thousands of nodes.
Fiat Systems and Proof-of-Stake Blockchains
In systems like fiat currencies and proof-of-stake (PoS) blockchains such as Ethereum, those who hold more coins do indeed have greater power to validate blocks.
In fiat systems, those with more money wield greater influence over governments and banks. In these centralized structures, wealth often equates to political power and the ability to shape monetary policies.
Many people mistakenly believe Bitcoin is centralized because a significant number of coins were mined early and allocated to initial miners.
Therefore, there is a false impression that Bitcoin will always remain concentrated in the hands of a few, when, in fact, the network’s incentives promote an increasingly greater distribution over time.
Bitcoin Distribution
To understand Bitcoin’s distribution, it’s important to first look at how it was launched.
The launch of Bitcoin
Bitcoin had a fair launch—there was no pre-mining, no initial coin offering (ICO), and no special advantages for insiders. Satoshi created Bitcoin in a public and transparent way, giving everyone an equal opportunity to participate from the beginning.
So, what makes the difference is each person’s personal decision, something that the network cannot control because it is a human factor, which depends on previous beliefs.
As the saying goes: each person buys Bitcoin or earns it at the price they deserve. Many people have heard about Bitcoin in 2011, 2013, 2017, or 2020 but have chosen to ignore it. Some take 5, 10, or even 15 years to finally grasp Bitcoin’s true value.
This delay comes at a cost—the price of not being interested earlier. Bitcoin is a financial revolution in the process of monetization, and as time passes, it only becomes more valuable.
Perhaps you first heard about Bitcoin 3, 5, or even 10 years ago but set it aside, only to regret not starting sooner.
Financial revolution
The fact that many people take time to grasp Bitcoin’s potential isn’t a flaw of Bitcoin—it’s a reflection of our own conditioning. We’ve been programmed with a fiat mindset that makes it hard to immediately recognize Bitcoin’s benefits. Bitcoin challenges everything we thought we knew about money and economics, so it’s natural to not understand it right away.
Bitcoin grows slowly and organically. Anyone could have bought it countless times in the past but didn’t. If Satoshi had set a constant reward across halvings without emission cuts, the network might not have grown as quickly or achieved the same level of security it enjoys today.
By front-loading subsidies in its early days, Bitcoin accelerated the deployment of computational power, exponentially driving its network development and efficiency in hashrate.
The emission cuts triggered by halvings create a sense of urgency to join the network, as rewards shrink exponentially over time.
Even though many early miners earned hundreds of Bitcoins, Bitcoin naturally distributes itself more broadly over time simply because it functions as money.
Bitcoin is money!
As early hodlers gain purchasing power, they’re naturally incentivized to sell their Bitcoin or trade it directly for goods and services, ensuring that Bitcoin flows to new users.
Thus, the increased purchasing power of long-time users encourages them to spend or exchange Bitcoin for goods and services. After all, Bitcoin is money, and those who hold significant amounts often don’t mind spending a small portion.
This activity by long-term hodlers drives the gradual distribution of Bitcoin over time, as illustrated in the chart below:
Besides that, over the years, the percentage of Bitcoin held by whales has been decreasing.
The chart above shows the decline in the percentage of Bitcoin held by whales after each halving: 62% in 2013, 49% in 2016, and 36% in 2020.
Meanwhile, ‘shrimp’ participants—users holding less than one whole Bitcoin—are growing in numbers, increasing their presence in the market.
See the graph below, represented by the light orange line.
As evident, the majority of Bitcoin is held by individuals, not funds, companies, or governments. This stands in stark contrast to fiat money, which is monopolized by governments and centralized institutions.
As demonstrated, Bitcoin’s incentives are aligned toward increasing distribution as it gains traction as a new store of value. This appreciation and profit-taking by major hodlers place more Bitcoin on the market, allowing new participants to accumulate more.
There are countless examples of this: early Bitcoiners buying houses or Hal Finney’s family selling some of his mined Bitcoin to cover medical expenses, among others.
Yes, There will be enough Bitcoin for everyone!
The key takeaway is that spending or selling Bitcoin is the easiest part!
Distributing Bitcoin is straightforward—its price just needs to rise. Even as Bitcoin appreciates, the wealth gained by early hodlers doesn’t harm the network. Instead, it creates a virtuous cycle of prosperity and increasing purchasing power, benefiting all Bitcoin holders.
The true challenge lies in holding Bitcoin, which demands a deep understanding of its essence and a long-term perspective.
If you’ve experienced a bear market, you know how hard it is to maintain “diamond hands” while pessimism dominates the market.
This journey requires self-control, a solid understanding of Bitcoin, and nerves of steel.
Many struggle with volatility and sell after a small profit or in moments of panic. Often, fear, ignorance, or excessive greed drive this behavior. Yet this very dynamic enables Bitcoin’s redistribution to those with a sovereign mindset.
Governments don’t need to intervene to redistribute wealth—Bitcoin uses the greed of those clinging to a fiat mindset to naturally transfer resources to those who choose to accumulate.
Therefore, not only will there be enough Bitcoin for everyone, but the world will also reap infinite benefits from the abundance and prosperity Bitcoin fosters.
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Founder of Area Bitcoin, one of the largest Bitcoin education projects in the world, she is a marketer, passionate about technology, and a full-time hands-on professional. She has participated in major Bitcoin conferences such as Adopting Bitcoin, Satsconf, Surfin Bitcoin, and Bitcoin Conference.
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