Bitcoin crashes when those investing realise 2 things - page 8.

SgtSpike

legendary

Activity: 1400

Merit: 1005

Quote from: revans on November 13, 2013, 10:47:43 AM

Quote from: RodeoX on November 13, 2013, 10:30:42 AM

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

Why would that matter? $1.00 is still worth $1.00 whether it is a dollar bill, 100 pennies, or 1,000 subunits. It's still $1.00 the whole time, and nothing changes by making it more divisible.

Are you arguing that getting rid of pennies would make $1.00 more valuable, because it is less divisible? Because if not, your argument makes no sense.

RodeoX

legendary

Activity: 3066

Merit: 1147

The revolution will be monetized!

Quote from: revans on November 13, 2013, 10:47:43 AM

Quote from: RodeoX on November 13, 2013, 10:30:42 AM

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

I don't see the problem with that, other than the lack of things to buy for $0.001

BitCloud

newbie

Activity: 48

Merit: 0

Quote from: briguy37 on November 13, 2013, 11:21:17 AM

Quote from: wobber on November 13, 2013, 10:31:54 AM

I actually tend to find a divisibility a good argument. However, one can find very difficult to own an atom of gold, whereas you can own 0.0000001 btc.

So, I do believe can crash because of this. I just hope it will return to a niche.

Let's compare apples to apples. There are about 10 billion ounces of gold in the world. Divide that by 21 million and you get that the final supply of each bitcoin equals about 476 ounces of gold today. A Satoshi is 0.000 000 01 bitcoin, so it is equivalent in supply to .000 004 76 ounces of gold.

.000 004 76 ounces of gold might sound small, but the equivalent value of that amount of gold at current prices ($1276/ounce) is .6 cents. That seems oddly close to a reasonable base unit for a currency to me.

Coincidence? I think not. Satoshi knew what he was doing and probably based the final supply and initial divisibility off of similar calculations.

excellent analysis, thanks.

briguy37

newbie

Activity: 50

Merit: 0

Quote from: wobber on November 13, 2013, 10:31:54 AM

I actually tend to find a divisibility a good argument. However, one can find very difficult to own an atom of gold, whereas you can own 0.0000001 btc.

So, I do believe can crash because of this. I just hope it will return to a niche.

Let's compare apples to apples. There are about 10 billion ounces of gold in the world. Divide that by 21 million and you get that the final supply of each bitcoin equals about 476 ounces of gold today. A Satoshi is 0.000 000 01 bitcoin, so it is equivalent in supply to .000 004 76 ounces of gold.

.000 004 76 ounces of gold might sound small, but the equivalent value of that amount of gold at current prices ($1276/ounce) is .6 cents. That seems oddly close to a reasonable base unit for a currency to me.

Coincidence? I think not. Satoshi knew what he was doing and probably based the final supply and initial divisibility off of similar calculations.

BTCtrader71

hero member

Activity: 784

Merit: 1001

Quote from: revans on November 13, 2013, 10:47:43 AM

Quote from: RodeoX on November 13, 2013, 10:30:42 AM

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

Dividing a dollar into 1000 (or even 1,000,000) is not the same thing as debasement. Not the same thing at all. Just think about it for a while.

revans

sr. member

Activity: 336

Merit: 250

Quote from: RodeoX on November 13, 2013, 10:30:42 AM

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

wobber

legendary

Activity: 1064

Merit: 1001

Quote from: N12 on November 13, 2013, 10:09:19 AM

Gold is divisible down to atoms.

I actually tend to find a divisibility a good argument. However, one can find very difficult to own an atom of gold, whereas you can own 0.0000001 btc.

So, I do believe can crash because of this. I just hope it will return to a niche.

RodeoX

legendary

Activity: 3066

Merit: 1147

The revolution will be monetized!

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

revans

sr. member

Activity: 336

Merit: 250

Quote from: Melbustus on November 13, 2013, 10:19:36 AM

Where's that "not sure if trolling or just stupid pic"?

Divisibility doesn't reduce anyone's holdings. Control of 1 BTC is currently control off 100m satoshis. Increase divisibility by a million, and that same 1 BTC represents control of 100 trillion satoshis. It's all about percentages.

FYI, rational people quickly realize that extreme divisibility is a huge plus and a core property of ideal money.

Right, and you don't think some people might have issue with the value if an individual Bitcoin is sudden altered to be worth 100x or 1000x as many sub units? How is this any different from the currency debasement you bemoan in state fiat?

Rygon

hero member

Activity: 520

Merit: 500

1 dollar =2.5 mBTC
1 cent = 25 uBTC

Comodore

full member

Activity: 159

Merit: 100

troll of the day always saves the day. Cheesy

crazy_rabbit

legendary

Activity: 1204

Merit: 1002

RUM AND CARROTS: A PIRATE LIFE FOR ME

Quote from: revans on November 13, 2013, 10:04:45 AM

1. The fact that only 21 million coins can be mined (assuming that does not get altered) is irrelevant when they can be sliced up into 100,000,000 sub units.

2. That there have already been discussions about increasing the divisibility.

When exchanges start working in sub units it may dawn on people that the scarcity argument used to promote Bitcoin is disingenuous rubbish.

The fact that you own 1 BTC and that is equivalent to owning 100,000,000 sub-units is EXACTLY why people are so excited. Because those subunits are limited, and all the bitcoin in existence is owned by someone.

It would be a totally different story if the BTC's were in the wild and we had no idea how many there were out there. Then yes, we would freak out about the divisibility. But instead we realise that we can own a crazy high percentage of the future of money. When people are buying things with Satoshis owning 1BTC will be like owning a space station. So yeah, get in now bro. It's a cool story only if you buy and hold.

Melbustus

legendary

Activity: 1722

Merit: 1004

Where's that "not sure if trolling or just stupid pic"?

Divisibility doesn't reduce anyone's holdings. Control of 1 BTC is currently control off 100m satoshis. Increase divisibility by a million, and that same 1 BTC represents control of 100 trillion satoshis. It's all about percentages.

FYI, rational people quickly realize that extreme divisibility is a huge plus and a core property of ideal money.

N12

donator

Activity: 1610

Merit: 1010

Gold is divisible down to atoms.

Zangelbert Bingledack

legendary

Activity: 1036

Merit: 1000

Peter, is that you?

revans

sr. member

Activity: 336

Merit: 250

1. The fact that only 21 million coins can be mined (assuming that does not get altered) is irrelevant when they can be sliced up into 100,000,000 sub units.

2. That there have already been discussions about increasing the divisibility.

When exchanges start working in sub units it may dawn on people that the scarcity argument used to promote Bitcoin is disingenuous rubbish.

Topic: Bitcoin crashes when those investing realise 2 things - page 8. (Read 10472 times)