New York man giving bitcoin in lieu of Christmas presents this year

What 3 year old wouldn’t want bitcoin this Christmas??

Forget toy trucks and dolls this Christmas, says Will M., of Rochester, New York, “I’m giving all four of my nieces and nephews exactly 0.01 bitcoins.” Ranging in age from 3 to 8, Will expects his small investment to be one of their least favorite gifts this year, but hopes that someday they’ll appreciate the gesture. “With any luck, if the kids can hold onto them, maybe they’ll be able to pay their college tuition in bitcoin.”

Sounds a bit silly, perhaps, but so did $10,000 per coin just a few months ago. “I know $100,000 or even one million dollars per coin isn’t guaranteed and even if it does happen, it probably won’t happen for a few years yet… but, hey, the kids are still young; they’ve got plenty of time to let this little investment accrue additional value.”

But what about spending bitcoins; it is a currency after all? “Yeah, that’s true,” says will, “but I figure they won’t actually have to spend any of their own money for a few years yet and by then who knows. By the time they’re teenagers maybe you’ll be able to buy almost anything with bitcoin. It won’t be the challenge it is today. Hopefully their parents will help them make good decisions about spending it!”

Will’s creative Christmas gift brings up an interesting issue about the equity of cryptocurrency. As a deflationary asset, children born today and in the future will have access to very few bitcoins relative to what we (and their parents) have access to. Within a few years all but an extremely limited supply of bitcoins will be mined and in circulation. At that point, the total supply might actually begin to drop as coins are lost or fail to be passed down from one generation to the next.

“Even if they [bitcoin] end of worth nothing at all, which I highly doubt,” says Will, “the potential is too great not to have some skin in the game. If this investment pays off, it’ll pay off big… and maybe my ancestors will dedicate a statue to me or something. Hey, it’s possible.”

 

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