Talking in Sat Rather Than in Bitcoin Will Be the Norm in the Future
Bitcoin price will increase so much that it will be an obligation.
In the Bitcoin world, more and more people agree that we are probably living the last few months in which a person will be able to buy 1 full Bitcoin.
Once the third Bitcoin Halving has taken place in May 2020, Bitcoin is expected to experience a very strong bull market for 18 months as it did after the previous Halving in 2012 and 2016.
No one knows how high this bull market will take Bitcoin price, but it is quite possible that it will approach $100K. At such a price, it is obvious that just few people would still be able to buy a whole Bitcoin.
Even today, when Bitcoin price is around $7.9K, many people starts thinking that they have already let the Bitcoin train pass them by. These people make the mistake of thinking of 1 Bitcoin as 1 share of a company.
A single Bitcoin is divisible by eight decimal points, and you should take advantage of this technical feature. The smallest unit of Bitcoin is even called a Satoshi, or Sat for short.
In the future, I’m sure that talking in Sat rather than in Bitcoin directly will become the norm. I will explain why in the following.
Bitcoin Price Will Soon Be Far Too High
With a price around $7.9K, it is still relevant to talk in Bitcoin when you want to give the equivalent price of a good or service. For example, you can say that a plane ticket from Paris to New York is worth 0.046 BTC.
The median annual salary of a Java programmer in the U.S. is $75K. In Bitcoin, you can very well say that he is paid 0.79 BTC per month.
Talking in Bitcoin is therefore still quite feasible at the moment, although I must admit it can already be complicated in some cases.
After the third Halving, Bitcoin price should rise sharply, probably approaching $100K by the end of 2021. If this were the case, the situation would become much more complex.
The price of a Paris-New York flight expressed in Bitcoin would thus be around 0.00362 BTC.
Expressing a price in this form is no longer very practical. Indeed, there are too many significant figures after the decimal point.
With future Halving events, which will occur approximately every 4 years, Bitcoin price is expected to continue to rise sharply. In the not-so-distant future, it is therefore quite possible that Bitcoin price will reach $500K, or even a million USD.
Assuming a Bitcoin at $1 million, the price of a Paris-New York flight would then be around 0.000362 BTC.
You clearly understand the problem that will arise in the future by displaying the price of goods and services in Bitcoin.
Satoshi Nakamoto Anticipated This Scenario
When he created Bitcoin at the end of 2008, Satoshi Nakamoto anticipated a possible very sharp rise in Bitcoin price. Once again, you have the proof that Satoshi Nakamoto was a visionary.
To make sure that Bitcoin remains accessible to the greatest number of people in the event of a sharp increase in its price, Satoshi Nakamoto made Bitcoin divisible up to eight decimal points.
Thus, you can make transactions of as little as 0.00000001 BTC.
In November 2010, the community agreed that the smallest unit that can be expressed in Bitcoin would be called a Satoshi, or Sat for short. Since then, the Bitcoin source code relies on the Satoshi to express as an amount in Bitcoin.
At the Blockchain level, transaction amounts are often expressed in Bitcoin next, while transaction fees that are smaller amounts are expressed in Satoshi.
The alternative use of Bitcoin or Satoshi is for the sake of readability and clarity for users.
The Satoshi Will Become More and More Important in the Future
As of March 9, 2020, Bitcoin price is $7,936. From this price you can deduce that $1 is worth 0.00012 BTC. Since 1 Satoshi is equal to 0.00000001 BTC, $1 is equivalent to 12,000 Sat.
For users, it will be much simpler to say that a coffee at $1 is worth 12,000 Sat rather than saying that it is worth 0.00012 BTC.
And again, I base this on Bitcoin price at $7,936.
If Bitcoin price reaches $100K in the coming years, we can easily express the price of a Paris-New York flight as being worth 4,400,000 Sat. Using Sat will therefore make things much easier for Bitcoin users in the future.
Speaking in Sat instead of Bitcoin will therefore become natural in the future.
This future domination of Sat is reflected in the rise of the same Stack Sats. Its use increased significantly in 2019.
I find this very relevant, because many people are beginning to understand that instead of complaining that Bitcoin price is too expensive for them, they can start accumulating Sats.
Accumulating Sats is a more realistic goal for many people. If today, it may make some people smile, in a few years, people who have accumulated Sats will benefit greatly.
For example, you can choose to give up your daily Starbucks Caffe Mocha, and use the $5 saved to buy the equivalent in Sats.
At the current Bitcoin price, you will be able to accumulate 63,004 Sats per day. If you keep this strategy for 5 years, provided that the price of Bitcoin remains constant at $7,936, which obviously will not be the case, you would then have 1.1498 BTC in your possession.
Proof once again, if it were needed, that starting small, while being constant, always makes a big difference in length.
The Satoshi unit is still unknown to a majority of Bitcoin owners. In the future, its use is likely to increase sharply. Indeed, it will become much simpler to speak in Sat when Bitcoin price has reached the heights Bitcoiners believe it is capable of.
Furthermore, using a unit such as Sat allows users to see that Bitcoin can be accessed even without a very large investment budget.
Simply investing $5 a day in Bitcoin, the equivalent of 63,004 Sats, over the next 5 years could allow you to own 1 full Bitcoin by the end of that period.
So it’s in your best interest to adopt Sat now when it is set to become the standard instead of Bitcoin in the future when talking about prices in Bitcoin.