8/13/20

Chicken Little is a Crypto Sinner

Chicken Little has been violating the 10th Commandment: Thou Shall not Covet. In particular, there is one bitcoin for every 400 people on earth. Chicken Little has bitcoin lust in his little chicken heart. 

hello
Chicken Little has bitcoin moves



How do you measure wealth? In the late 1990's, I proudly told a friend that I owned 100 shares of Cisco - soon to become the most valuable company on the planet. My friend responded with, "800" meaning 800 shares of Cisco! In the words of Key & Peele, "Bring it in dog."



Microsoft, Cisco, Intel and Dell were the four horsemen of the NASDAQ. Wealth was expressed in number of shares owned. Every period and every group has a measure of wealth. When I was a tank driver in the US Marine Corps Reserves, one of my fellow marines, Sergeant Graham, had been an infantry man before become a 'tanker'. Sergeant Graham judged a man's wealth by his footwear as in, "those are some pretty sweet boots." 


In August of 2020, my envy is for bitcoin. The current mandated limit on the number of bitcoin is 21 million. So very few. 


Bitcoin is scarce


There is approximately 1 bitcoin for every 400 humans on earth. That means if you buy one bitcoin, you own the share of 400 people, ten bitcoins equal the allocation for 4000, a hundred bitcoins the share for 40,000. Below is a scale for Bitcoin wealth. 

# BTCPopulation's sharevalue 8/13/2020
Mega1,000,000400,000,000$11,700,000,000.00
Kilo1,000400,000$11,700,000.00
Hecto10040,000$1,170,000.00
Deka104,000$117,000.00
Solo1400$11,700.00
Average0.002501$29.25
Crypto-poor0.000250.1000$2.93
Crypto-less0.000000$0.00


Here is my proposed lingo. If you own 10 bitcoin, you are a Deka-cryptonaire, 100 bitcoin, a Hecto-cryptonaire, and so forth. 

Crypto seems too cheap

Beyond pure lust for Bitcoin, I cannot believe the low price at a mere $11,700 per bitcoin. For example, earlier this week a single hedge fund bought 1/1000 of the world's supply of bitcoin. And it is not even a hedge fund that I had heard of before. Finally, consider that a mega-billionaire like Jeff Bezos could easily afford to buy a million bitcoins, more than the share for all the people in the US. 

Is it rational to count wealth in bitcoin? Yes, in the sense that we are in the midst of the mother of all monetary bubbles. No, in the sense that there are other cryptos beside bitcoin, there are diamonds, there are precious metals, and there are other real assets such as land.  As the person who wrote this line knows, "The heart does not know from logic." For me, today, bitcoin is all I want. 

Get your bitcoin before they are gone





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