At 0.02 cents, the humble satoshi still has a long way to go to reach penny parity, let alone a whole dollar.
Bitcoin (BTC) may be circling historical highs, but a new storm is brewing around its smaller subunit, the satoshi or „sat“.
As more novice investors approach BTC, attention is again focused on the fact that many still think Bitcoin can’t be split up and is „too expensive.
Buying Bitcoin? It’s too expensive
A frequent point of discussion throughout Bitcoin’s recent history, the problem of how to solve this misconception and introduce satoshis to a wider audience is now back in focus.
This week, statistician Willy Woo publicly approached the CoinGecko listing site with an appeal to make the little satoshi more visible.
„Put a smaller unit like the default Bitcoin Code unit on your website and see if it catches on. Let’s start a trend,“ he offered.
Woo was responding to an experience by Magic Internet Money podcast host Brad Mills, who had been told by a potential buyer that he couldn’t afford a whole Bitcoin.
A long road to parity?
Satoshis are the smallest original subunit of Bitcoin, which is divisible by up to eight decimal places. At today’s prices, this makes a single satoshi worth about 0.02 cents. One US dollar is worth 43 satoshis.
A dedicated resource now shows how much the BTC/USD must earn for the satoshi to equal one cent. For this to happen, Bitcoin would have to challenge the U.S. M2 money supply cap, Woo said; in other words, Bitcoin would have to reach $1 million.
Against that backdrop, Bitcoin’s $23,000 price tag still seems modest. However, some coins have already fallen to satoshi parity on their own. In July, the Argentinean peso joined the Lebanese lira as one satoshi equaled its smallest unit of account.
He also pointed out that, in addition to the satoshis, so-called „milisats“, which exist in the Lightning Network, could be used in case of need. Lightning remains the most widely accepted best bet for Bitcoin scaling, and the advances in its user experience will allow Bitcoin beginners to send small payments for almost no fees in the future.
This is achieved by making transactions out of the chain and synchronizing them later, avoiding the need for miners‘ fees and congesting the Bitcoin blockchain.