Bitcoin Forum

I think if Satoshi had created bitcoin with 1billion or 1trillion base units instead of 21million then we would see less wild price swings.

Think about it, if the early adopters bought at 0.000001, and the first bubble was 0.000031, and the recent ramp up was 0.000266 then it doesn't sound like that big a deal.

The price per bitcoin in usd even though arbitrary is a psychological factor.

I guess the difference is the current method is great at promoting value and growth compared with other currencies metals and stocks etc, but also bubbles.  Whereas a much lower rate would maybe not attract enough attention quickly enough to catch on.

Thoughts?

If you bought Bitcoins at $0.01 and now they are worth $0.001 it's (practically and psychologically) the same as if you had bought them at $100 and then they were worth $10.

You never traded penny stocks?  ::)

But nobody quotes in satoshi's. everyone quotes in bitcoin (the whole unit) of which there is only 21m.  If everyone was quoting in satoshi's then 1usd = 0.00000266 doesn't sound very over priced does it.

I'm just saying the high valuation caused from quoting in bitcoin whole units makes it SOUND over valued.

Agreed, there is certainly a psychological factor to it, which is why as someone who only got into this recently I purchased litecoins more heavily.

Yes, BTC is divisible to the 8th digit or whatever, but IMO most non mathematically-inclined people are not instinctively comfortable with dealing in fractions. I wouldn't be surprised if a significant minority (or greater) doesn't understand the different between .1 and .01.

edit: Then again, as time passes and payment systems such as BTC debit cards and smart phone apps are developed and popularized, this problem with perception might work itself out.

I think perhaps BTC is not deflationary enough. 21 million probably should be 11 million.

gox should add LTC to dilute the market and swinginess

Going from .000000266 to .000000050 would not be that big of a deal.