At What Point Do We Start Thinking In "Sats" Instead Of "Bitcoin"?

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(Edited)

Sats or BTC.jpg

This question is something I've been thinking about recently as the price of 1 Bitcoin has gone up, we're seeing more references to Bitcoin in mainstream media (although they are still very "FUD-dy") and even in the last couple of weeks, I've got a couple more friends and family in to Bitcoin as they started talking about it!

However, as you'll see quite often when your close ones start asking questions that we all asked when we first got our teeth in to crypto, they will need a lot of help to understand what they are actually buying. My friends have all said they have "missed the boat" as they "can't afford to buy Bitcoin" so they then start to look at other tokens like DOGE and whatever else they think they've heard off and as someone who's been in for a few years now, you're like "NOOOOOOOOO" and then the gentle education begins.


Working With Whole Numbers

Yes the price of 1 Bitcoin now is probably more than what most of us will be able to afford now but that's not where the tale should end! To get 1 Bitcoin, you need to have 100 million satoshis (sats), which is the smaller denomination that makes up BTC, rather like 100 pence to £1. So you don't need to splash out £35,000 to buy 1 Bitcoin, why don't you spend a tenner to get about 28,000 sats instead (pricing at time of writing)?

When I explained this to my friends, the cogs started turning as they didn't think of it like that - the thought of owning 28,000 of something became a lot more powerful than owning 0.00028 of something! If 1 Bitcoin reaches 6 figures, even 7 figures as some would predict, the price of the sat becomes even more relevant and those of us who check the news on Crypto News apps will know that payments in Bitcoin and other cryptocurrencies will be a thing (Mastercard, Visa, Uber, Tesla, PayPal, Bank of New York...), in some cases, it already is!

Let's give an example of a euphoric future. If 1 BTC ever reaches £1,000,000 per BTC, 1 sat would be 1p - would a vendor price their products in BTC or in sats at that point? Your weekly food shop at £50 priced in BTC would be 0.00005000 or in sats, 5,000. Which would be easier to grasp as a consumer?

Obviously, there'll be people saying, well, I'll just use my fiat to pay for groceries - I'm just using this as an example for argument's sake to show how it would work and the perception of numbers on pricing.


Gurus

Anyway, this is where the support that we give our friends, family, colleagues etc is so much more important than just showing them where to buy. We've all got some experiences and time in the market to share with others, we're the gurus they will be coming to to ask questions on crypto! It will take time but I'm starting to talk about sats with people rather than fractions of a BTC, even at £35k per BTC!

What about you? Are you thinking in sats these days? If not, at what point do you think you'll start thinking in that way, if at all? Let me know in the comments below!

Happy SATurday haha!

Nicky

I'm not a financial advisor and this isn't financial advice. Speak to a professional if you're unsure about how to spend/invest your money

Originally posted here



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17 comments
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Look at all this common sense here. I think if everyone had you to explain things crypto wouldn't seem so foreign. Says the pen & paper lover who relies on you to make it make sense. 😜

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Haha thanks P2P (pen to paper 😁)! It's a gradual process but now my friends are starting to learn more and doing their own research to understand what's going on. Just met up with a friend for a walk here and they were telling me things I didn't know which made me warm despite the -7C Arctic winds! ❄

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Lol you can also make a paper wallet and hold your Sats on paper and just write in the other said for example 60 000 Sats and hand it to someone and make it real

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Thinking in satoshis is something I really need to start doing. With my pile of crypto growing and diversifying it might help me get a better understanding of the value of each component.

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When I flipped the switch a few months back and thinking in sats, it started making things a little easier to comprehend, especially if you have different bits and pieces scattered around crypto.

Don't know if you watched any of the Michael Saylor conference yet but that first video where they did a macro look and the guy he interviewed (a billionaire fund manager) said he thinks in Bitcoin now, not fiat. Pretty extraordinary!

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I was trying to explain this concept to a cryoto-newbie friend of mine yesterday. It was difficult to put into words. I ended having to show him on my phone what I meant and even then he still was a bit confused. Thinking in sats is going to be a difficult transition, even for me. I do think it will continue to become more and lore of a thing though.

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Yeah it's trying to relate the sats to something that's already known which can prove difficult to begin with. We're so used to 100 making up a whole (100 cents/pence to a dollar/euro/gbp) that when you start moving into 100 million it's a hard transition! The more you talk about it with your friend it will help and it will just click and you won't know how or why haha

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You should set up a lightning wallet and set it in Sats and then ping them a few instantly it's a powerful example

I keep a few million Sats in lightning just so I can give newbs their first Sats

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Happy SATurday m8 😂

We've all got some experiences and time in the market to share with others, we're the gurus they will be coming to to ask questions on crypto!

Ha ha, I'm far from a Guru. But i have had all kinds of people asking me about crypto over the last 4 years. most just want me to buy it for them... and then sell it for them when it quadruples. I once had a very suspect geezer (insert friendly scouse gangster) in a pub offering me tens of thousands to double his money. I had to very carefully extricate myself from the conversation, and that pub, when his back was turned 😂

In all seriousness tho, the complexity of bitcoin is the biggest barrier to adoption. I spoke about this a little in my most recent post

Once people realise that their spending power exponentially increases with Bitcoin compared to relying solely on cash, people will flock to services like BitPay. When they can easily buy their monthly shopping for half the price using crypto, worries about network fees will become a moot point.

That is the holy grail of crypto. Making it possible for people to spend it without having to interact with private keys every time. I reckon that in the future someone will finally develop a custodial service whereby newbies can spend money through a card and then payback a balance in BTC at the end of each month. Then their private key becomes a little like a password that they only have to deal with once a month. It is far from a service that I'd use because of security worries, but the vast majority of people will need something as simple, or simpler, to get on board.

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most just want me to buy it for them... and then sell it for them when it quadruples.

Hahaha I know this one too man. Give a tenner, make it worth a million... Not quite how it works unless you buy 4 euromillions tickets and one of them is a winner!

Making it possible for people to spend it without having to interact with private keys every time.

Look at Strike, it's a payment service a bit like Revolut but you can already do that and as Mastercard/Visa/PayPal etc all get involved, this will be a reality far sooner than we think! A quick 4-6 digit pin number to verify transaction and bish bash bosh, real good satty nosh haha!

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A quick 4-6 digit pin number to verify transaction and bish bash bosh, real good satty nosh haha!

Sounds like just the ticket for paying for your Sunday roast with a couple of pints for the road lol

Look at Strike, it's a payment service a bit like Revolut but you can already do that and as Mastercard/Visa/PayPal etc all get involved, this will be a reality far sooner than we think!

Yeah, I do think we're closer than many think too. I just wonder if the sheeple effect will kick in and basically no one will bother until they can do it all easily with their Apple Iphone or on their Samsung Galaxy. People trust the tech companies that bring them all the toys that distract them. To my way of thinking it's an insane thing to trust any company over your own abilities to research and learn something that can drastically change your life for the better. It is a sad thing that these massive companies monopolize tech opportunities, but I think one of the biggest barriers to 'the average Joe' is the narrative of crypto 'not being safe'. Ironically, a narrative that many big mainstream tech companies have been pushing the last 5 years, and recently they have started to accumulate... strange that isn't it! It's almost like they want the majority to think its all a big bubble/scam, until they're ready to offer crypto services themselves at a point where the market has already matured massively.

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Hey, you're preaching to the converted here mate haha! I've lost count the amount of times I get strange looks when I tell folks about this but when I ask what people think money is backed by, they still think it's gold... oh well, I'll keep doing my thing and acquiring what I can until it becomes literally pointless buying sats with fiat!

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70 000 Sats a day between 4 Halvings keeps the FOMO away my friend! Y’all collect your 1 TRON or LINK or whatever alt you like I just look at how many more Sats that is once I convert lol!

I thought being in the 1 coin club would get me to relax it hasn’t in fact it’s made it worse

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Damn, 70k a day, I'm going to have to convert the rest of my alts together and operate fully in sats. It sounds so much better when building up to the 100 million than having 0.0007BTC per day!

Lol! That's the King Salmon dilemma, new stresses and targets to aim for now!

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when it gets to 1 dollar.

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Ah, the confidence! Love it! When do you reckon that will happen?!

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