How to specify in Bitcoin terms – Bitcoin Magazine
This is an editorial by Stephan Livera, host of the “Stephan Livera Podcast” and managing director of Swan Bitcoin International.
Many fiat currencies struggle to maintain purchasing power in the US dollar.The macro conversation on Twitter about finance is about how the whole system is broken right now and how you Ponzi cannot be tapered.
Now is the perfect time to highlight the benefits Bitcoin brings. It is not a fiat currency that can be printed on demand. It’s time to convert to Bitcoin.
What’s Happening in the World of Fiat Currency Markets?
As you may know, many fiat currencies have crashed against the US dollar. This does not necessarily mean that the US dollar is “rising”. And just because the pace is slowing, the purchasing power is also gone.
Year-to-date (YTD) for large fiat currencies and USD:
- GBP falls from $1.34 to $1.057 — down 21%
- Japanese Yen Falls from 0.0087 to 0.0069 — Down 20%
- EUR falls from $1.13 to $0.97 — 15% drop
The Bank of England is now launching a new wave of bond purchases. In other words, the decline continues. GBP holders and savers will continue to have their savings destroyed by money printers over time. They are sacrificed at the altar of “financial security.”
With fiat currencies devaluing this quickly, it’s not such a crazy idea that things should be valued directly in SAT or BTC. But the reality is that long-term Bitcoin users are dramatically profiting in terms of both purchasing power and freedom.
The loss of trust in fiat currencies is causing a fundamental shift in thinking. If our precoiner friends were previously scared of bitcoin because of its volatility, it makes sense to start using bitcoin denominations as the volatility gap between bitcoin and fiatcoin shrinks. .
What does specifying in Bitcoin terminology mean?
That means evaluating the economic costs and benefits in terms of Bitcoin or Satoshi. This includes financially valuing our net worth in Bitcoin/Sat. This is ultimately what matters to Bitcoin Maximalists in the long run. If you believe that one day all prices will be determined by dirt, why not start now?
I’ve been trying to convert my net worth to bitcoin for a while, but I’m struggling with the next part, my daily expenses. For me, this is mostly due to mental arithmetic. So my next step is to focus more on assessing the bitcoin cost of daily item earnings and spending. If you’re serious about bitcoin as better money, it should show .
Practical Tips for Bitcoin Denominations
Start by keeping your finger on the pulse as to what the “sat per dollar” price is. You can do it at the sites mentioned in the list. You can also use conversion tools such as bitkoin.io and preev.com. Also, pricedinbitcoin21.com is a useful site that displays prices denominated in Bitcoins of all kinds.
One mental arithmetic tip is to start with sats per dollar. For example, 1 BTC = $19,067 has approximately 5,200 sats per dollar, so $10 is approximately 52,000 sats, $100 is approximately 520,000 sats, and $1,000 is approximately 5.2 million sats.
Another hurdle is actually having to re-pricing. Quote Real-world products/services in Bitcoin terms. But even so, this is a cross we owe, and operating in this manner benefits users in the long run.
Of course, there may come a point where Bitcoin’s price, which was set years ago/cycle ago, is no longer appropriate, but this requires a recalibration. What a Fiat Merchant Must Do for now.
This is nothing new.
In the early days of Bitcoin, it was more common to express things in BTC value. Perhaps the rising price and dealing with a small fraction of Bitcoin in your head made it more difficult.
But keep in mind that early services and games from SealsWithClubs to MPOE to SatoshiDice were denominated in Bitcoin! Some of the early exchanges on the Bitcoin Talk forum were denominated in Bitcoin.Really, this will only bring Bitcoiners back to life Already used do.
Of course, there are people in the bitcoin space who are already denominated in bitcoin in terms of the services/products they sell as well. Various individuals in the field operate without a fiat bank account, so clearly Bitcoin denominated is doing better.
Also note that the Lightning Network is here to help. Various Lightning services, chips and wallets are earthworks. For example, the Alby and Podcasting 2.0 app is built in sat. People running routing nodes in the Lightning network set a base rate and a variable rate (ppm, or parts per million) in satoshi terms. This can be verified by browsing the Lightning node in an explorer such as mempool.space.
On the issue of money: Bitcoin or Sats?
A longstanding topic in Bitcoiner circles has been unit bias, which is believed to be behind the pumping of some shitcoins. Incoming no-coiners see the price per unit so low and buy shitcoins thinking, “Hey, that’s off the low base, so there’s more upside.” So the rationale is that if we were just talking about bitcoin and just the SAT (not the BTC term), then that bitcoin could also leverage this effect.
But it’s not free and there are tradeoffs. There may be high net worth investors (HNWIs) getting into Bitcoin, and they want to buy the “whole coin”, so they buy more than they otherwise would. It could even be argued that the wealthy have more influence because they buy more. And now most people have the oft-cited statistic that “even if every billionaire on the planet wanted the full bitcoin, they couldn’t get it.” I know.
Note that dividing the number of sats by the population on earth yields approximately 226,000 sats (see satsperperson).
Source: satoshisperperson.com, as of September 28, 2022
But perhaps this unt bias problem isn’t here either. As long as your app or service has an easy option or toggle to switch between BTC and Sat terms, it probably doesn’t matter too much. In practice, I think you just refer to the less valuable ones in sat terms and the more valuable ones in BTC terms.
Fiat currency conversion cannot be completely avoided
One of the criticisms here might be that much of our daily life spending is still denominated in fiat currency and we can’t (yet) get away with it entirely.No-coiners may criticize us for still valuing Bitcoin in USD, but the process is start somewhere.
Starting somewhere means you need to try to think in bitcoin or earth terms first timeIf we are talking about the price of things we list the price of bitcoin terms first timeOr, perhaps more provocatively, list the price of Bitcoin that’s all Ask your partner to do the math. Let’s disrupt fiat network effects and stop fiat from controlling our lives.
This is a guest post by Stephan Livera. Opinions expressed are entirely his own and do not necessarily reflect those of his BTC Inc or Bitcoin Magazine.
How to specify in Bitcoin terms – Bitcoin Magazine
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