Bitcoin Investors and Crypto Traders Should Use Satoshis as Best Pricing Metric [Stats About Sats]
It is possible to start thinking about the things we buy using Satoshis rather than Bitcoin (BTC) or another digital asset. Each Bitcoin is subdivided in 100 million satoshis, and they can be very versatile at the time of purchasing goods and services. However, if they want to start growing, they will need to be embraced by the community.
Since we entered the market, we know that there will be just 21 million Bitcoin. That means that most of those that want to purchase this digital asset will never own a whole BTC. However, that’s not a problem if the main intention is to use this coin as a means of payment. However, it might seem difficult for a person that is used to think in Bitcoin to start thinking in Satoshis.
At the moment, $1 US dollar is equal to almost 28,000 Satoshi. But there are also other denominations smaller than Bitcoin but larger than just a simple satoshi. The units that could help users start using satoshis are milli-bitcoin (mBTC), equal to 0.001 BTC, centi-bitcoin (cBTC), equal to 0.01 BTC or deci-bitcoin (dBTC), equal to 0.1 BTC.
There is a digital currency wallet that is already helping users start thinking about Bitcoin in BTC terms – and its smaller units – rather than in USD terms. In general, those that are very close to the industry are fluent with these denominations.
For example, the Twitter user Shaine Kennedy wrote a tweet in which he prices things in Satoshis. A pint of beer would cost 170K Satoshi and a Loaf of bread just 67K Satoshi.
Try to price everything in satoshi, even whole-denominated bitcoin transactions:
Current block reward: 1.25 billion satoshi
Gallon of gas: 86K satoshi
Ribeye: 400K satoshi
Pint of beer: 170K satoshi
Loaf of bread: 67K satoshi
US median home price: 6.8 billion satoshi
— Shaine Kennedy (@shaine_kennedy) January 4, 2019
One of the things that several critics make to this proposal of thinking in Satoshis rather than in other unit is due to the fact that Bitcoin is very volatile. This means that in just a few hours a “pint of beer” could cost 170k Satoshis or just 130k Satoshis.
Nevertheless, fiat currencies are also not so stable. There are some countries in which local currencies devaluates each month at very high rates. In the United States, the U.S. Dollar has lost a lot of its value in the last years.
Now it is time for companies working in the space, wallet providers, exchanges and other firms to start embracing the ‘Satoshi’ term and help users start using them as well. It could be a good time to start thinking and spending in Satoshis.