David Thomas

4x Founder/co-founder

[David Thomas @DTinSD]

Bitcoin is Guam

This is how I explain #BTC to my non-technical friends and family…..

Imagine if bitcoin were Guam. An Island way out in the Pacific Ocean. A piece of land of a given size. Now imagine if that island became the most sought after real estate in the world. Real estate that every millionaire, every investment bank, every publicly traded company, every sovereign wealth fund and every government would want to own. Now add to that nearly every individual in every country that wants access to sound money. Now let’s run through some back of the napkin math and look at what that looks like in our island metaphor.

Guam has an area of roughly 210 square miles. That is convenient as the total ultimate supply of Bitcoin will be 21,000,000 units.

That breaks down to 100,000 Bitcoin per square mile of our Pacific Island.

As there are 640 acres in a square mile that breaks down to 156.25 Bitcoin per Acre,

and further down to 278.78 square feet per individual Bitcoin,

or, at $34,000, $121.96 a share foot.

Now let’s look at it from another angle. If the island were divided evenly amongst humanity, each individual human would have only .726 square feet. Thats around the size of a dinner plate.

That means that today, you can secure your fair share of that real estate for less than $100.

The Pareto Principle tells us that that land is not going to be evenly distributed. And unfortunately most of is has already been acquired by people that aren’t likely to sell any time soon.

Let’s take a look at how the map currently breaks down.

SECTION 1 - This section is the portion of this island that has already been lost forever. It’s estimated that anywhere from a fifth to a third of the total supply of bitcoin has been lost forever. Bitcoin is lost when the private keys are lost. This was commonplace in the early days of bitcoin but more bitcoin is lost everyday to key mismanagement and lack of planning. We won’t ever recover this section of the island. It might as well be under the Pacific.

SECTION 2 - This is the section of the island that is occupied by the old men and women that have been sitting on that real estate for a long time. This land is highly concentrated belonging largely to the “whales” and other large land holders. These people have weathered many storms and have demonstrated their resilience and unwillingness to part with their land. As their land appreciates these people will have no reason to sell as they know how to generate liquidity from their positions without selling. This will become easier and easier when the world realizes that their land is some of the highest quality collateral available.

SECTION 3 - This section is held by our short term stake holders. They are either new to the island or they are tourists that come and go. This section is the real source of liquidity for new comers and it’s over this land that we will all have to fight in the coming years. As more and more new comers come to our island this will be the only land trading hands. And as time passes, many of these new comers are going to plant their flags and become long-term holders as they see their positions appreciate. This is where we are all suppose to pile in.

SECTION 4 - Our Northern peninsula represents the un-mined bitcoin. This is the land that we have yet to un-cover. We are currently un-covering this land at the rate of approximately 5.76 acres per day. Next year, that will be cut down to 2.88 acres per day, and every four years after that it will be reduced again in half. That means that it will take more than 100 years for us to uncover the entirety of that northern peninsula.

As you can see, if/when bitcoin goes mainstream, the amount of real estate actually available is tiny compared to the demand that will exist for it.

The rate at which new land is created is absolutely fixed and can not be accelerated.

Further compounding that reality is that some day, the average number of bitcoin lost per day is going to exceed the total new bitcoin mined per day. When that happens,, we will all be living on an island that is for ever getting smaller and smaller with ever increasing demand.

My advice to you, buy yourself at least enough space to pitch a tent on while you can still buy it for less than the cost of a new Range Rover.

@saylor

[David Thomas @DTinSD]

@BladeoftheS Total nonsense.😂

[David Thomas @DTinSD]

That's a pretty crazy and out of touch conclusion..

You actually believe that he refuses his salary because he would rather net $0 in salary than $240,000?

If you actually believe that, you should take a moment to consider what else you believe that also doesn't make any logical sense.

He discloses the charities that he donates to..

[David Thomas @DTinSD]

@ProudSocialist Most businesses would flop immediately if the executives and ownership left and the employees took over.

[David Thomas @DTinSD]

@iam_biglad1 Yes, which is thousands of times more than you pay...

[David Thomas @DTinSD]

@JennDinKC I suppose it's too bad they didn't teach you how debt works..

[David Thomas @DTinSD]

@sdkassis Bro, nobody in the private sector has any power with $1M in income.

[David Thomas @DTinSD]

@RoKhanna Are you personally currently building wealth or hoarding wealth?

[David Thomas @DTinSD]

@RoKhanna So you acknowledge that wealth is built by people.

How is someone supposed to build wealth without later being accused of hoarding the wealth they’ve built?

[David Thomas @DTinSD]

@BladeoftheS So dumb and out of touch…😂

These are the words of a person who has never actually produced anything of value, ever.

[David Thomas @DTinSD]

@sytaylor X doesn't belong to SpaceX..

[David Thomas @DTinSD]

@EdKrassen On the left is a Golden Eagle and on the right is a Bald Eagle, the national bird of the United States..

[David Thomas @DTinSD]

@anthonyzenkus You’re not actually disputing his point in any compelling way.

His point was that civilizational wealth is driven by innovation.

Your argument is basically that it should say “some people” instead of “someone”. That doesn’t change the point he was making at all.

[David Thomas @DTinSD]

The context is rent control.

The complaint is that the rent doesn’t support upkeep of the building.

Maintaining a building when the rents are forced below the costs is like trying to squeeze a glass of water out of a potato.

You’re not making an intelligent point, you’re missing the point completely.

[David Thomas @DTinSD]

@skumWgmi The answer is obviously because it’s their property and they can do what they want with it.

Imagine thinking a restaurant should be required to prove why they raise the prices on their own menu..

[David Thomas @DTinSD]

@omgsidewalks How many people do you employ and what are their wages?

[David Thomas @DTinSD]

@Rothmus I’d challenge anyone to find a single example of another commercial building besides the Obama Library that cost north of $3,000/sf to contruct.

[David Thomas @DTinSD]

@XqiuzX If the teacher worked for billionaires they would make a lot more money.

The government and teachers unions won’t allow entrepreneurs to enter the education space.

If they could, we’d all be a lot better off, especially the teachers.

[David Thomas @DTinSD]

@hashjenni Before capitalism almost everybody lived in poverty..

Capitalism brought us from 90% of the population living in poverty to 10% living in poverty.

Sorry that the progress isn’t going fast enough for you.

[David Thomas @DTinSD]

@omgsidewalks This post is so over used. Why not have an original thought instead of copying this tired post?

[David Thomas @DTinSD]

@matthewstoller A company wasting money they obtained via voluntary exchange and the government wasting money they obtained via coercive exchange are not at all comparable.