Goodbye Sats. It’s A Bit Of A Bitcoin

This opinion editorial is by Don McAllister, a technologist that has made many video tutorials about Bitcoin. Bitcoin was not worth anything at the time it was created. It had no monetary value. Bitcoin was easy to mine, with simple laptops, for hundreds of thousands of dollars. It was therefore unnecessary to enumerate it using other units than whole bitcoin. Although the Bitcoin protocol was intended to accept fractional units, it was not necessary to use them in the beginning as many, hundreds, and even thousands of bitcoin were common. It was necessary and logical to use whole bitcoins to enumerate. As bitcoin adoption grew and its monetary value increased there was no reason to use smaller fractions of bitcoin. These fractions were the bit and sat. One bitcoin can be divided into one million bits or 100,000,000 sats (short form for satoshis). However, bitcoin’s value has risen to tens and thousands of dollars per bitcoin. A reset is needed to determine the Bitcoin protocol’s value. As bitcoin becomes a medium for exchange, a reset is necessary to make new adopters feel comfortable. It is estimated that 100 million people have bitcoin. However, many people who are yet to adopt it are unsure and confused about what bitcoin is. It’s likely that most people who are introduced to bitcoin through the retail space won’t ever accumulate one bitcoin. As bitcoin issuance slows down, institutional investors will jump in, and the price will increase, this will only get worse. You are in a fortunate position if you have one or more bitcoins at this time. This will make it impossible for most people to acquire them in the future. Only a few millionaires will ever be able to have a single bitcoin. There are more than 50 million millionaires worldwide, but only 21 million bitcoin will ever be available. Bitcoin is a horrible name. A bitcoin could refer to a physical object (i.e., a bit currency). Bitcoin is a digital asset. However, this is not in line with its name. Bitcoin can also be used to refer to two things: the bitcoin monetary network (Bitcoin), and the bitcoin monetary asset (bitcoin). The monetary network is one the most secure and largest computer networks. It is the core technology that allows bitcoin transactions to be conducted. It runs on thousands upon thousands of nodes all over the world. The Bitcoin network is unrivalled in reliability and security. However, bitcoin, the monetary asset is confusing and alien to many who have yet to adopt it. Many people feel that they are not able to afford bitcoin or have missed the boat by adopting it because of its current high value. Many people believe that bitcoin is too expensive or they have missed the boat. Let’s begin by applying the existing method for bitcoin enumeration with the U.S. Dollar. USDcoin = 100,000,000 Cents. (Let’s not forget that 1 dollar is actually 100 cents. Let’s assume that the USDcoin is being used as a currency. Imagine an average person walking into a shop to buy a fridge. The price is Fridge = 0.00030000 USDcoin, or 30,000 Cents. This is completely foreign and unfamiliar. Let’s get rid of the USDcoin moniker. Instead, let’s use dollars at their actual value of $10.00 = 100 cents. So $300.00 = 30,000 Cents. See how familiar and comfortable that makes you feel? The dollar symbol is there so that you can instantly recognize it as dollars. And the decimal point is there so you can clearly distinguish between dollars and cents. Everything can be listed in dollars or cents. You can now have $3,000,000 dollars instead of 3 USDcoins. It’s completely foreign and unfamiliar, but it’s exactly what we expect people to adopt with bitcoin. The symbol? The? symbol, which has been used historically to count whole bitcoins, is well-known to people. I suggest we adopt the? I suggest that we adopt the???? symbol for bits. It is highly unlikely that anyone will confuse whole bitcoin for bits. You won’t think that 300 whole bitcoin is being sold for?300.00 if you see it. You can trade in whole bitcoin by going back to eight decimal places. They can also transact in millions of bits if they are lucky enough. Remember that 1 BTC is worth?1,000,000 and 3.09367835 BTC equals?3,093,678.35. This is how we do with USD and GBP: We use millions of units, e.g. $1,000,000 or?1,000,000. We need to stop talking about bitcoin’s price in bitcoin and instead talk about its bit price, just like we talk about things priced using dollars or pounds. Let’s not use the name Bitcoin to describe the network. Instead, let’s talk about bits. A bit is a “bit” of a bitcoin. People associate bitcoin with the word “bit” and are more likely than others to understand that a bitcoin is made up of bits. An “sat” is nothing to the average person. If exchanges adopt this terminology, people will perceive lower prices for bitcoin because it would be priced in bits, making it seem more affordable. It would encourage people to buy and spend in bits. There are no changes to the Bitcoin network or underlying monetary asset. Bits are already included and were added for a reason. Do you really believe that the fact that they are mirrored dollars, cents, pounds, and pence is a coincidence? Don McAllister contributed this guest post. I believe Satoshi Nakamoto was already looking towards the future when bits would be the new global currency. These opinions are not necessarily those of Bitcoin Magazine or BTC Inc.

 

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