PSA on Bitcoin's divisibility (why a Satoshi will always be worth less than what you need to buy)
Some in the media have mistakenly reported that a Bitcoin is indivisible. Hopefully we are past that. As we all know, a Bitcoin can currently be broken into 100,000,000 Satoshis.
A single Bitcoin would therefore have to be worth $10 million USD of todays dollars for a single Satoshi to equal 1 cent.
$10 million x 21 million (slightly over the amount that will be mined by 2030, look it up) would be 210 times the current M2 (measure of money supply) of USD. This also means that if you think 1 Bitcoin will be worth $1 million anytime soon, you are off by orders of magnitude.
So Satoshis will more than likely never be too valuable to be useful.
Posted Apr 14, 2013, 12:14 AM UTC
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