Tuesday, 3 March 2020

Ten Million Bitcoiners: The Intransigent Minority

Drawing on Taleb's idea of the Dictatorship of the Minority - this post does the math on how much more adoption we need for Bitcoin to have a viable intransigent minority - a force that can tip the scales toward mass adoption.

For most observed complex systems, the minority contin­gent required to flip a popula­tion to comply with their intran­si­gent view is in the 3 – 4% range. With a U.S. popula­tion of 325 million, 3% is 10 million.

A fintech fund that’s been in the Bitcoin space since 2012 recently ran intense analysis resulting in the best estimate I’ve seen for Bitcoin owner­ship. Just 7 million people globally are storing $100 of value or more in the Bitcoin protocol. For round numbers, let’s assume half of those people are in the U.S., and that one-seventh of those are above a more signif­i­cant threshold like $2500. That’s just 500,000 U.S. citizens with a meaningful amount of Bitcoin. And of those, what percentage actually under­stand and care about Bitcoin to the point where they would fight for it? Let’s be generous and say 20%.

There are approx­i­mately 100,000 Bitcoiners in the United States. This means that just to get to “intran­si­gent minority” levels, we need a 100x increase. This is why adoption dominates all other prior­i­ties for Bitcoin.

submitted by /u/bswen
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