In this tweet today, Peter Schiff stated:
The idea that Bitcoin is scarce as there's only 21 million is nonsense. One #Bitcoin merely represents an arbitrary quantity of 100 million Satoshis. So, it's the total number of Satoshis that must be considered. With a supply of 2.1 quadrillion Satoshis are anything but scarce!
Of course, this is idiotic, and I doubt he actually believes it. Dividing a pizza into a billion pieces does not mean there's more pizza. It means there are more pieces. Most people understand this after age 5 or so.
But it does mean you can distribute pizza to more people.
Divisibility Facilitates Distribution!
For good health, your circulatory system needs to distribute blood throughout your entire body. More in some places, less in others. Blood is a liquid made up of trillions of blood cells. If your blood were just one big cell, it wouldn't work. Increase that to a million cells and it still wouldn't work. It only works because the proper amount is divided up and distributed where needed.
The same is true of money. A healthy society / economy depends on the free flow of liquid assets to where they are needed. Cryptocurrency facilitates this better than any money that has come before it, and divisibility is one of the features that makes it possible.
Try dividing a hundred dollar bill into a thousand pieces. You just destroyed ALL of its value. Don't bother trying to distribute it where needed.
Try dividing a gold bar into a thousand pieces. Possible to do, but that's a lot of work, isn't it? A lot of work that isn't adding much value to the gold. And don't bother trying to distribute the little gold pieces where needed either, as the transport costs are going to be more than the gold is worth.
Try dividing a Bitcoin into a thousand pieces. Digital. Done. Easy. Now let's distribute it where needed. Digital. Done. Easy.
This is not to say that Bitcoin and other cryptos have been distributed everywhere they are needed, but this is mainly an issue of adoption. They are on their way, with distribution increasing every day. And eventually / ideally there will be blood flow to all extremities.
Then, in this tweet, Peter Schiff stated:
The fact that an ounce of #gold can be divided into grams does not make it any less scarce. That's because its the weight of gold that's scarce relative to the demand to use it as a metal. Bitcoin weighs nothing and is used for nothing. So, dividing #Bitcoin reduces its scarcity.
Weightlessness Also Facilitates Distribution!
Do I even need to explain further? I hope you get it.
To the moon is not just a metaphor. Crypto is literally bound for distribution into outer space. Elon Musk is not going to be stacking gold bars or USD in his rockets to Mars.
