$1 Million per bitcoin. That is quite unfathomable from where we are. What if I said 1 cent per sat (satoshi)?
Even those who do not understand what a sat or satoshi is can comprehend something valued in cents.
But in both cases, it is the same valuation of $1 Million per bitcoin.
If I say .003 bitcoin per every person on the planet, that number seems too small and inconsequential to pay attention to. What if I said 300,000 sats per person on the planet? That sounds big enough to draw some attention.
I think when people keep focusing on 1 Bitcoin in the US Dollar terms, it will make it look gigantic (even at $10,000).
Each Bitcoin can be divided into 100 Million units.
Each unit is called a sat (short for Satoshi). When we start to price things in terms of sats, all of a sudden the crazy bitcoin price predictions of $280,000, $470,000 or even a million dollars seem to make sense.
After all, I can comprehend paying 1 cent for something because I have paid for things earmarked in dollars and cents before.
Me and most everyone have never paid a million dollars for anything and so it is not something we can intuitively relate to. And more so for something that is as new as bitcoin.
Divisibility is one of Bitcoin’s greatest strength
Lightning networks and other developments on the Bitcoin blockchain may soon make it possible to pay for something as cheap as a few cents using bitcoin blockchain.
Today we can tip someone in fraction of a cent using bitcoin. You cannot do anything with a fraction of a cent in the real world. When that fractional payment capabilities are applied to real world commerce perception around bitcoin will change radically.
The more we start talking about Bitcoin in sats the better it is for those who are outside the bitcoin and crypto realm at this point.
For instance, I can convince someone to pay $10 for 100,000 Sats. Even a person who doesn’t understand what a sat is, will be inclined to buy them if I told him/her it has a slight chance of going to $1000.
We don’t have to convince people to buy 100 Million sats for 1 Million Cents. We only have to convince people to buy 1 Million sats for $100 with the hope of turning that $100 to $10,000 or to just pass it on to their loved ones generation after generation as a token of history.
It is not internet funny money – it is the NEXT internet
Right now, someone who has never touched a bitcoin is scratching their heads looking at all the crazy people who are buying the ‘internet funny money’ for 10’s of thousands of real world dollars.
They have no incentive to even wet their feet in the bitcoin waters.
However, if they realize that they can take part in this ‘craziness’ for $10 or even $1 and still have a meaningful stack to their name – that will convince a lot of people to try it out, even as if it were a lottery.
Blockchain adoption (like any other adoption) is a numbers game and we only increase the speed by gaining numbers. One way to gain strength in numbers is changing our language from one whole bitcoin to 100 million sats.
Thank you for reading and sharing this article.
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