Topic: Why do we pay so much when the same function can be performed by a few Satoshis - page 2. (Read 1827 times)
May 08, 2015, 09:50:20 AM
I suggest you read the Bitcoin whitepaper, should make more sense then.
May 08, 2015, 09:31:15 AM
I read before that theoretically the Bitcoin economy could run on a single BTC.
But in any case, having options is all that matters. We never know how far BTC will go, so x8 decimal accuracy is great. If some day BTC goes to 1 million USD per BTC, having x8 decimal accuracy will be useful.
But in any case, having options is all that matters. We never know how far BTC will go, so x8 decimal accuracy is great. If some day BTC goes to 1 million USD per BTC, having x8 decimal accuracy will be useful.
May 08, 2015, 08:03:11 AM
I see what you mean, why does bitcoin have so many digits you are saying but all the coins have the same amount of digits, the only thing that changes is the amount of bitcoins, i dont know too much about it but im guessing all the coins must have those digits for some reason.
they have all the digits because of divisibility, this is important if the price reach a very high value, and to spread bitcoin as much as possible
May 08, 2015, 07:59:45 AM
Im asking more about why the demand for satoshis is so high when one can buy ample amount to perform all functions that BTC provides with just a few thousand satoshis.
Its like if 100 grams of gold did the same job as 1kg, you would not need to buy 1kg right?
Unless of course you only bought it as an investment.
Its like if 100 grams of gold did the same job as 1kg, you would not need to buy 1kg right?
Unless of course you only bought it as an investment.
But that wouldnt make sense because if only 1 satoshi was 1 cent every bitcoin would be worth 1 million dollars and there are 14 million bitcoins so far so in total the value would be huge around 14.000.000.000.000 so it would be impossible
That is only right assuming that the mining would only mine 25,000 satoshis, instead of 25 bitcoin. Otherwise miners would be making millions all of the time.
It is the same as any other physical mining defining the price (within reason). The plus point is that satoshis future proof bitcoin, as the value will and cann never be so high that something cost less than a satoshi.
May 08, 2015, 05:46:01 AM
Im asking more about why the demand for satoshis is so high when one can buy ample amount to perform all functions that BTC provides with just a few thousand satoshis.
Its like if 100 grams of gold did the same job as 1kg, you would not need to buy 1kg right?
Unless of course you only bought it as an investment.
Its like if 100 grams of gold did the same job as 1kg, you would not need to buy 1kg right?
Unless of course you only bought it as an investment.
But that wouldnt make sense because if only 1 satoshi was 1 cent every bitcoin would be worth 1 million dollars and there are 14 million bitcoins so far so in total the value would be huge around 14.000.000.000.000 so it would be impossible
May 08, 2015, 05:29:13 AM
Im asking more about why the demand for satoshis is so high when one can buy ample amount to perform all functions that BTC provides with just a few thousand satoshis.
Its like if 100 grams of gold did the same job as 1kg, you would not need to buy 1kg right?
Unless of course you only bought it as an investment.
Its like if 100 grams of gold did the same job as 1kg, you would not need to buy 1kg right?
Unless of course you only bought it as an investment.
May 08, 2015, 05:22:19 AM
I see what you mean, why does bitcoin have so many digits you are saying but all the coins have the same amount of digits, the only thing that changes is the amount of bitcoins, i dont know too much about it but im guessing all the coins must have those digits for some reason.
May 08, 2015, 04:45:45 AM
The value of a bitcoin comes from its ability to perform as a utility, as an anonymous, instant, cheap way to send funds globally correct?
So as long as you can get enough units of bitcoin to perform this function, then there is no need for people to fight over the remaining units and push the price up via supply and demand.
The function that Btc performs could be performed just as well with 1000th, 1 millionth as many satoshis. There is no need for us all to have 1 000 000 000 satoshis each to be able to send what at the moment equates to ~$230 when 230 00 satoshis would do the job just as well. Why are we bidding against each-other to buy more? More would do the same job...
So why isnt the value of bitcoin settling much, much lower? Are genuine users forced to conduct transactions at an artificially inflated rate?
Why isnt much closer to 1 satoshi=1 cent? That would enable transactions to be conducted just as they are now, we would all have enough bitcoin to not worry about bidding against eachother to buy some.
Lets compare it to gold, always clearer in gold
1kg in gold might provide the vital components for a machine that is worth $100 000. It is the most expensive use case for gold on earth hypothetical example)
Because of this, it sets the market value for gold (not withstanding speculation and investment influences on the price)
There is no reason for people to suddenly start paying 1000 times as much for that same kg of gold. Its price is in-line with its real world applications.
So why does this happen with BTC? We can still send money anonymously, instantly, feeless with 1 000th as much of a BTC? The price is completely unrelated to its real world applications and demand for the utility.
So as long as you can get enough units of bitcoin to perform this function, then there is no need for people to fight over the remaining units and push the price up via supply and demand.
The function that Btc performs could be performed just as well with 1000th, 1 millionth as many satoshis. There is no need for us all to have 1 000 000 000 satoshis each to be able to send what at the moment equates to ~$230 when 230 00 satoshis would do the job just as well. Why are we bidding against each-other to buy more? More would do the same job...
So why isnt the value of bitcoin settling much, much lower? Are genuine users forced to conduct transactions at an artificially inflated rate?
Why isnt much closer to 1 satoshi=1 cent? That would enable transactions to be conducted just as they are now, we would all have enough bitcoin to not worry about bidding against eachother to buy some.
Lets compare it to gold, always clearer in gold
1kg in gold might provide the vital components for a machine that is worth $100 000. It is the most expensive use case for gold on earth hypothetical example)
Because of this, it sets the market value for gold (not withstanding speculation and investment influences on the price)
There is no reason for people to suddenly start paying 1000 times as much for that same kg of gold. Its price is in-line with its real world applications.
So why does this happen with BTC? We can still send money anonymously, instantly, feeless with 1 000th as much of a BTC? The price is completely unrelated to its real world applications and demand for the utility.
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