Bitcoin’s Distribution was Fair

Foreword

As Bitcoin rises in popularity, and continues to challenge mainstream thought, there will be concerns around certain parameters of its existence. One of those is that the distribution of Bitcoin wasn’t “fair,” particularly in the earlier stages of network development. I’ll dive into the timeline surrounding Bitcoin’s launch, and provide a thorough debunking of unfair early distribution claims.

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Distribution

Premining is the mining or creation of a number of crypto coins before the cryptocurrency is launched to the public. Premining sometimes has a negative connotation due to the ability of private developers to privately mine and allocate a number coins to themselves before releasing the open source code of the currency to the public. This could lead to a feeling of lack of transparency in the digital currency offered to the public.

http://organofcorti.blogspot.com/2014/08/167-satoshis-hashrate.html
Bitcoin blocks mined in 2009 — Allocation to the dominant miner — ExtraNonce value (y-axis) vs block height (axis)

Conclusion

Satoshi was a person like any other, not some infallible being. This was the fairest distribution he could have come up with given what he was building/timing/audience. It’s intellectually dishonest to compare Satoshi’s early mining of Bitcoin at a loss, with premining of an ICO with a positive market value (or expected positive market value).

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