Bitcoin crashes when those investing realise 2 things

[revans]

1. The fact that only 21 million coins can be mined (assuming that does not get altered) is irrelevant when they can be sliced up into 100,000,000 sub units.

2. That there have already been discussions about increasing the divisibility.


When exchanges start working in sub units it may dawn on people that the scarcity argument used to promote Bitcoin is disingenuous rubbish.

[Zangelbert Bingledack]

Peter, is that you?

[N12]

Gold is divisible down to atoms.

[Melbustus]

Where's that "not sure if trolling or just stupid pic"?

Divisibility doesn't reduce anyone's holdings. Control of 1 BTC is currently control off 100m satoshis. Increase divisibility by a million, and that same 1 BTC represents control of 100 trillion satoshis. It's all about percentages.

FYI, rational people quickly realize that extreme divisibility is a huge plus and a core property of ideal money.

[crazy_rabbit]

1. The fact that only 21 million coins can be mined (assuming that does not get altered) is irrelevant when they can be sliced up into 100,000,000 sub units.

2. That there have already been discussions about increasing the divisibility.


When exchanges start working in sub units it may dawn on people that the scarcity argument used to promote Bitcoin is disingenuous rubbish.

The fact that you own 1 BTC and that is equivalent to owning 100,000,000 sub-units is EXACTLY why people are so excited. Because those subunits are limited, and all the bitcoin in existence is owned by someone.

It would be a totally different story if the BTC's were in the wild and we had no idea how many there were out there. Then yes, we would freak out about the divisibility. But instead we realise that we can own a crazy high percentage of the future of money. When people are buying things with Satoshis owning 1BTC will be like owning a space station. So yeah, get in now bro. It's a cool story only if you buy and hold.

[Comodore]

troll of the day always saves the day.

[Rygon]

1 dollar =2.5 mBTC
1 cent = 25 uBTC

[revans]

Where's that "not sure if trolling or just stupid pic"?

Divisibility doesn't reduce anyone's holdings. Control of 1 BTC is currently control off 100m satoshis. Increase divisibility by a million, and that same 1 BTC represents control of 100 trillion satoshis. It's all about percentages.

FYI, rational people quickly realize that extreme divisibility is a huge plus and a core property of ideal money.

Right, and you don't think some people might have issue with the value if an individual Bitcoin is sudden altered to be worth 100x or 1000x as many sub units? How is this any different from the currency debasement you bemoan in state fiat?

[RodeoX]

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

[wobber]

Gold is divisible down to atoms.

I actually tend to find a divisibility a good argument. However, one can find very difficult to own an atom of gold, whereas you can own 0.0000001 btc.

So, I do believe can crash because of this. I just hope it will return to a niche.

[revans]

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

[BTCtrader71]

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

Dividing a dollar into 1000 (or even 1,000,000) is not the same thing as debasement. Not the same thing at all. Just think about it for a while.

[briguy37]

I actually tend to find a divisibility a good argument. However, one can find very difficult to own an atom of gold, whereas you can own 0.0000001 btc.

So, I do believe can crash because of this. I just hope it will return to a niche.

Let's compare apples to apples.  There are about 10 billion ounces of gold in the world.  Divide that by 21 million and you get that the final supply of each bitcoin equals about 476 ounces of gold today.  A Satoshi is 0.000 000 01 bitcoin, so it is equivalent in supply to .000 004 76 ounces of gold. 

.000 004 76 ounces of gold might sound small, but the equivalent value of that amount of gold at current prices ($1276/ounce) is .6 cents.  That seems oddly close to a reasonable base unit for a currency to me.

Coincidence?  I think not.  Satoshi knew what he was doing and probably based the final supply and initial divisibility off of similar calculations. 

[BitCloud]

I actually tend to find a divisibility a good argument. However, one can find very difficult to own an atom of gold, whereas you can own 0.0000001 btc.

So, I do believe can crash because of this. I just hope it will return to a niche.

Let's compare apples to apples.  There are about 10 billion ounces of gold in the world.  Divide that by 21 million and you get that the final supply of each bitcoin equals about 476 ounces of gold today.  A Satoshi is 0.000 000 01 bitcoin, so it is equivalent in supply to .000 004 76 ounces of gold. 

.000 004 76 ounces of gold might sound small, but the equivalent value of that amount of gold at current prices ($1276/ounce) is .6 cents.  That seems oddly close to a reasonable base unit for a currency to me.

Coincidence?  I think not.  Satoshi knew what he was doing and probably based the final supply and initial divisibility off of similar calculations. 

excellent analysis, thanks.

[RodeoX]

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

I don't see the problem with that, other than the lack of things to buy for $0.001

[SgtSpike]

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

Why would that matter?  $1.00 is still worth $1.00 whether it is a dollar bill, 100 pennies, or 1,000 subunits.  It's still $1.00 the whole time, and nothing changes by making it more divisible.

Are you arguing that getting rid of pennies would make $1.00 more valuable, because it is less divisible?  Because if not, your argument makes no sense.

[Melbustus]

Where's that "not sure if trolling or just stupid pic"?

Divisibility doesn't reduce anyone's holdings. Control of 1 BTC is currently control off 100m satoshis. Increase divisibility by a million, and that same 1 BTC represents control of 100 trillion satoshis. It's all about percentages.

FYI, rational people quickly realize that extreme divisibility is a huge plus and a core property of ideal money.

Right, and you don't think some people might have issue with the value if an individual Bitcoin is sudden altered to be worth 100x or 1000x as many sub units? How is this any different from the currency debasement you bemoan in state fiat?

Because the percentage you control is the same!

Ah, here it is:

[ElectricMucus]

Bitcoin crashes on the next big bad news, it's that easy.

That could be, for instance that it comes out that the dollars in the mtgoxUSD order book aren't there anymore.

[Syke]

Knowing that a dollar bill can be divided into 100 pennies does not change my opinion of dollars.

And what if it was decided one day that it could be divided into 1000?

LOL. Thanks for the brilliant comedy! Are you a professional comedian IRL?

[Wilhelm]

1 dollar =2.5 mBTC
1 cent = 25 uBTC

I think it will become

1 dollar = 10,000 satoshi

Sounds like more money