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If You Want to See the Bitcoin Price Soar Don’t Buy It – Give It Away

By Jacob Cohen Donnelly Oct 9, 2014 8:17 AM EDT

bitcoin price

NEW YORK (InsideBitcoins) — Perhaps the best way to see Bitcoin grow and for the price to stabilize is to do the exact opposite of what many believe: don’t buy it, give it away.

David Keyes, an Akron, Ohio software architect and entrepreneur, says all holders of bitcoin should give away 10% of their total balance. He’s serious. Keyes’ argument is that by giving it away, more bitcoin holders will be created and the increased demand will  reduce the speculation.

“The only legitimate way to increase the price of bitcoin is to increase demand. One of the best ways to increase demand is to increase adoption. The more people that want BTC (to make purchases, for example), the higher the price will be,” Keyes said in an interview with Inside Bitcoins.

The reason the price of bitcoin has been all over the place, Keyes argues, is because it has been tremendously speculative. In August, Blockchain.com, a leading wallet provider, passed 2 million Bitcoin wallets for its service alone. However, that’s a tiny number in the world of global currencies. And many current users are holding their bitcoin for the next price spike, rather than circulating the coins through purchases and transfers.

Keyes says the cryptocurrency could add another four million new users.

“There are roughly 13.5 million Bitcoin available at this point. Assume that only 75% of that is actually accessible at this point (abandoned wallets, etc.). That gives a nice round number of around 10 million BTC. If everyone participated and gave 10%, then we would give away 1 million coins,” he says.

“Now assume that we have some fun and [an] efficient distribution mechanism that is fairly accurate at getting coins into the hands of new Bitcoin users. We reach 20 million new users, help them get a wallet, and give them each .05 coins (around $20 each assuming an exchange rate of $400 USD/BTC).

“Because of the awesomeness of Bitcoin, some percentage of those users will not only spend their .05 coins, they’ll fund their accounts with more, let’s say 0.25 BTC ($100). I’ll be conservative and also assume that only 20% of the new users do this. That means that there would be 4 million new Bitcoin users all trying to buy as many as 1 million BTC. That’s about 10% of the available coins! That’s a HUGE spike in demand.”

Keyes says the plan is doable – and in fact, his efforts are already paying off in building a bigger base of Bitcoin believers.

“This whole scenario is not all that far-fetched. In my LinkedIn article, I put a link to Coinbase … I was amazed to see that my article enticed more than 650 users to create a wallet, and more than 150 of those linked the wallet to a bank account!”

He says the only way to stabilize the price of bitcoin is to increase the usage and demand. If more people are using it, it becomes more difficult for a few power users to manipulate the price. Further, if the demand increases for bitcoin, that would send the price even higher.

“I’ll go out on a limb though and say that the price will be around $750 in the new year. If demand cranks up for bitcoin, then it really could go through the roof. $5,000 or more is not unthinkable.”

Now Keyes is looking for others to join his cause.

“I gave away about $300 in chunks worth roughly $20 at the time over the course of a couple of days,” Keyes said.

You in?

Facebook Comments


  • Putting bitcoins in the hands of people who don’t understand bitcoin does not increase network effect. Case and point: Auroracoin.

  • Dominik Z

    Kyle please take some economics classes.

    And when you do ask the professor: “what is network effect?”

  • Dominik Z

    yes it is too bad however that the guy who created bitcoin wasn’t as charitable

  • I’m sure Changetip will play a big role in this~!!

  • atkjatka

    Here is my address!!
    1MjUawUjup5m8ADzVEj5qNecSGVD3BidfX

  • john

    1F1naiWJWbTypRAGu6anSYUEfmQbg48u5M

  • HairyHerry

    Me thinx he’s drinking the same Kool-Aid that the Obummers enjoy. The difference? It’s a giveaway of a really TRUE asset, not printable by the Fed as the USD, and given to those with no clue on how to either secure or utilize their new asset. In fact, I say it’s even more costly in terms of time to educate n00bz on how BTC truly works. I say this because 1) I was an early adopter of BTC and DOGE, 2) Too few people realize that the entire security of their BTC holdings are indeed on their shoulders – ultimately their responsibility, and 3) A really super application has yet to be made which makes it easy for even Grandma to “get it” in regard to both obtaining and using BTC.

    psssst… 1NkgeLzjBZ9ZVU2jU112HjUcMejCgeTUNE
    Gracias!

  • PokiAhi

    Awesome idea! I agree we should give more to get more!

    13UxBF6fzvdn8WNEVSF2Som4iQGWF8vkPE

  • Great Post

  • Ghaith Hlaoui

    1Mm8bJSXZRo87NqGyHUeRcztGAhnDVGahV

  • Alanna Conti

    1GA94Frhtj91JKj6amvYUrxcYTSejEDpVj

    please and thank you!! great article. Power to the people!

  • Neal Palmquist

    Never was there any HONEST reason to create more than just one bitcoin.

    Zero divided zero times does not equal one and those do not add up to 21,000,000.

    If you have an infinitely divisible bitcoin and if I also have an infinitely divisible bitcoin then at least one of us got screwed. You cannot give a unit of measure for thin air infinite divisibility as a mathematical property and then make it go anywhere by undoing that action when you multiply it 21 million times

  • Doing what I can supporting http://xrl.co/freebitcoins – trivial I know but I’had some 1600+ visits as I promote that link!

  • Jacques Favier

    Joke aside, there are some great things in this article. I have been clearly pointing out, for some time, the greatet bug in bitcoin’s ability to compete with States’ moneys: the lack of taxes!

  • Well considering our game show Take My Bitcoins has given away over 85 Bitcoins so far- sure!

  • This guy’s arguments make no sense. Taking bitcoins from one person and giving them to another person does not increase demand. Giving bitcoins to people who don’t understand Bitcoin is not the answer. You should put bitcoins into “strong hands” if you want the price to rise.

  • Bit Koin

    Great idea, but if you do this on a large scale you will have people gaming the system and trying to get free bitcoin more than once. Look what happened with stellar.org they claim to have over 2 million Facebook authenticated accounts each of which has received some free stellar, but in reality over 99% of those accounts were fake Facebook accounts getting the stellar and immediately moving it to an exchange to convert to bitcoin.

  • Sefo

    1FftQ1S2gi1ixVhbHUfwEHccnAP87nQEbv

  • Animation

    1Dwy1G8TwJPwjEZKD2DMaPtasBndtnjRTY 🙂

  • Occrest

    If you are serious about giving some bitcoin away…here’s my address.
    1NUGACQUKiW8E2s4PF3sL1fZ4EAeCvrjis

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