21 sats \ 1 reply \ @Storyteller 10 Aug 2023 \ on: How much are sats worth to you? bitcoin
I once heard somebody saying: divide everything by 21 million.
This means: the market cap of all stocks, market cap of all bonds, the market cap of all money in the world, the market cap of all minerals, all gold.
The total global population.
Divide everything by 21 million.
Then you will get the value of 1 bitcoin.
If you divide everything by (21 million times 100 million) you get the value of a sat.
Because all those items can grow and the number of sats or bitcoins cannot grow indefinitely, your sat or your bitcoin will grow.
Yes it can fluctuate in the short term.
The sat is like 1 meter or 1 kilo or 1 liter. It is not like 1 dollar.
Imagine that 1 meter would be changing all time. 1 meter now is less then 1 meter 10 years ago.
How would we measure things, roads, buildings? Everything would collaps.
That is the house of cards we have been building with fiat.
The 1 dollar, that everybody thinks is the 1 meter standard in the fiat real estate business and in the fiat road business and the fiat construction business is not stable.
It is not a measure like 1 kilo, 1 meter and 1 liter.
Imagine the FED of the Measure business, coming every quarter and saying: guys 1 meter is now 105 cm! And now next quarter we expect to stop increasing it. We only increase it with 1 cm. So it will be 106 cm!
Everybody would scream hell no. Every building would collaps.
These are laws we created, stardards.
During covid the Fed actually said: 1 meter is now 130 cm. He increased or devaluated the stardard by 30%.
It could also mean 70 cm. He dropped the value.
So that is why we need a uniform measure. Bitcoin or Sat.
Something that doesn’t fluctuate.
The people not understsnding this are living in a house of cards built with stones and measures that are changing constantly. Where 1 kilo, 1 meter and 1 liter are changing.
The house will therefore collaps.
Unfortunately, there's no such thing as a unit of value that doesn't fluctuate, because value is subjective. People's preferences change all the time and every time that happens the relative exchange rates of everything in the economy shifts a little bit.
The contribution of a hard money is that its value (almost) only shifts on the demand side. The consistent supply makes for a more predictable unit of account and more stable prices.
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