Topic: Why do we pay so much when the same function can be performed by a few Satoshis (Read 1835 times)

lmao you made my day

If you should review this software patch, you should find that the variables “COIN” and “CENT” were defined as one hundred million and one million respectively.

8 is just that magic geek number that's aesthetically pleasing. I don't think there was a very special reason to choose that unless satoshi pointed that out, just like 1 MB block size was not that special, it was just a number to keep things going for that time.

Its like a dollar compared to euros for example. If 1€ equals 1.23$ even if the value of euros increase you would still represent dollars with 2 digits

The value comes from the market, supply and demand. Supply is if you have some coins, and would rather have less or none, and offer them for sale. Demand comes from when you have none or few, and want to have more, and therefore bid to buy (or offer to sell dollars, which is the same).

Production and consumption does not come in to play, since there is no production (or a fixed, predetermined production) and no consumption (a coin always resides in someones wallet).

And just like darkness and light, where darkness is just absence of light, and coldness and heat, where coldness is just lack of heat, supply, in our case is the same as lack of demand (someone does not want to hold a coin in his wallet). It is only demand, the want and action you take to hold coins for a short or long time, that counts. The holding of one coin for ten years is the same as ten people holding one coin for one year.

Coinclusion: Demand to hold coins give them their value.

Edit: If you, Krugman, should happen to read this: The men with guns will come after you, the moment you start to speak the truth.

The location of the relaying node is determined from sources such as http://www.iplocation.net/. If the location is unknown, then they use 0°, 0°

Why, if my grandmother had wheels, would she be a bicycle?  Not everyone rides her, I say.  We could amputate her feet and still have enough grandmother to go around.

Wow, sorry for that wrong So, when 1BTC is $1 and 1 satoshi still 100,000,000? So.. that's why the OP asking for?

The digits never change, it doesnt matter what is the price of bitcoin, it will always be 100.000.000 satoshis If the price is high then 1 satoshi would be worth more its as simple as it gets

First of all, 1BTC is not 1 million satoshis. It's 100 million satoshis = 100,000,000

I think it's because Bitcoin always growing, so the price always getting raise. And it affected the satoshi, ie. if 1BTC = 3$ so 1BTC= 1,000,000 satoshis. But because the price of Bitcoin is growing up, so.. 1BTC= 300$ so 1BTC = 100,000,000 satoshis

And, if you want use more less number. You could use mBTC which is 0.001BTC or 3 cents

tnx for pointing me this, i didn't know about this, so i would assume that the position they show is also wrong?

There is no IP information in a transaction or in the block chain. That is a myth that is probably perpetuated by blockchain.info because they show the IP of the node that relayed the transaction to them, and it is mistakenly assumed to be the IP of the originator.

Have you ever consider the point that right now for each block solved, the miner is rewarded with 1 btc or equivalent to 100 million satoshi. At current price that is 240 dollars per btc or 0.0000024 dollar per satoshi. As you can see it's too small for a number not enough to represent a cent. The scenario that you explain can only apply when btc price goes way up to make 1 satoshi viable to be used to represent a decent number.

it depends, in the blockchain the only thing that it is displayed is your location based on ip, but what if i'm using bitcoin(sending transaction) not from my usual location?

it's not like in the blockchain or in my address there is my name wrote on...

You need to learn about Bitcoin again. Bitcoin is even less anonymous than Cash

yeah this was probably just a brain fart   

There will be new concepts f payment in the future, mainly micropayments, like on videogames and stuff, right now its a pay in the ass to do micropayments with fiat currencies, our cryptos offer super diminutive payments for high scores and whatnot, that's a huge unexploited niche right there.

Because of the mining cost

If mining 1 bicoin cost $300 but it worth 1 million, then everyone will be mining bitcoin and sell it immediately for huge profit, no one will buy when they can mine. So that will raise the competition in mining thus push the cost quickly up, and at the same time the exchange rate will crash, until they reach similar level

Your question doesn't make sense. You are asking why the value of a bitcoin is so high ($240/BTC), when 1 satoshi could represent one cent ($1,000,000/BTC).

Gold's price is probably 5 or less per cent actual utility and the rest is speculation, fear, hope and parking of value. Same goes for BTC and it possibly always will.

If it's to be used as a form of money then all of the above outcomes are inevitable and come with the territory.

I suggest you read the Bitcoin whitepaper,  should make more sense then.

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.

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

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.

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

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.

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.

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.