20 sats \ 0 replies \ @Brunswick1 OP 7 Apr 2022 \ parent \ on: A tool to think in bitcoin: A proposal to standardize sats per dollar in transactions bitcoin
This isn't necessarily for the cashier, its for someone wanting to have a basis for transitioning from pricing in dollars to sats. If you use a number that only needs to change when there is a 5% swing in bitcoin price, it will likely only change once or twice per day and more commonly once per week.
Lets say you want to buy a freezedryer for $4000, but wonder how much bitcoin that is. By the time you look up the price of bitcoin and try to figure the amount of bitcoin, you've probably already forgotten why you were looking up the price of bitcoin and getting wrapped around the axle about the change in price. If you have a number in mind that only changes every few days, and its 'good enough' for a rule of thumb, you can more likely than not do the calculation in your head.
For example:
- The freezedryer is $3999 plus tax, that's close to $4000
- $4000 times 2300 sat/$
- that's 5 zeros and 4 x 23
- 23 x 2 is 46
- 46 x 2 is 92
- the freezedryer is 92 and 5 zeros
- subtract 3 zeros for ksats, that leaves two zeros, so its 9200 ksats.
- you know 1000 ksats is 0.01 bitcoin, so its 0.092 BTC or about 0.1 BTC
You don't even need to consult your phone, and if you get used to thinking of prices in sats, this is what is required in the process of rebasing an economy to a new currency, or 'thinking in bitcoin'.
If you're negotiating price for something with another person, you can get them to agree to use the rounded sats per dollar for pricing, and do the exchange in sats rather than dollars.