Quote:
Originally Posted by Winsor_Pilates
I'm not following your concerns about Bitcoin being divisible?
Are you suggesting that will diminish investment returns to holders?
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It’s a banner point from BTC boosters that the hard cap of 21 million makes it deflationary and a hedge against inflationary US dollars. There’s actually 2.1 quadrillion satoshis though. If BTC were to hit dino’s expected value of $1M, a satoshi would be worth one cent.
As you approach this, people no longer deal in fractions of a Bitcoin and instead switch to multiples of a satoshi. Right now some use mBTC which is 100,000 satoshis. Worth $44 USD today and a much more manageable dollar conversion in certain situations. When you’re buying your groceries in the future with BTC (lol) it’s easier to be told you owe 3000 satoshis than you owe three hundred thousandths of a BTC.
As soon as it exceeds $1M there’s no way to send anyone an equal conversion between standard currency and a fraction of a Bitcoin. You’d also have no decimal remainders left for calculations based on a %, like fees, or interest. So you’d need to update the divisibility and doing so eliminates the scarcity.