There is enough bitcoin for everyone

Bitcoin’s divisibility allows it to be used by any number of people in a wide variety of use cases.

Bitcoin is unique in that when the last bitcoin is mined, around 2140 there will be approximately 20,999,999.9769, rounded down to 21 million bitcoins. Also, by 2140 there will be more people on the planet than now (as expected).

Here’s a question to ponder: Are 21 million bitcoins enough for humanity?

The beauty of divisibility

The Bitcoin protocol can absorb huge amounts of capital through its transactions across digital boundaries. It achieves this through one of its main characteristics: divisibility.

Divisibility is one of the characteristics of any form of money, commodity, fiat or cryptocurrency that turns something of use or value into exchangeable money. In order to exchange goods of different values, money has to be broken down into smaller units so that it can be offset. In order to adopt and promote the practical use and purchase of Bitcoin as an everyday currency alternative, the divisibility of Bitcoin is vital. Just as a one-dollar bill can be broken down into 100 pennies, Bitcoin can also be broken down into smaller units. Since the value of a bitcoin has risen, it makes sense to buy a fraction of the digital currency instead of a whole bitcoin at once. Bitcoin is broken down into units as small as 0.00000001 BTC, which makes Bitcoin perfect for micropayments. The divisibility of Bitcoin results from the maximum supply of the currency and other factors such as the block reward. The smallest fraction of a bitcoin, 0.00000001 BTC or 1 Satoshi, was named in honor of its mysterious creator Satoshi Nakamoto. A single bitcoin is made up of 100,000,000 units called “satoshis”. Bitcoin’s divisibility could be a factor contributing to its adoption as it enables a wide range of payments not possible with traditional currencies and payment methods. Online monetization and international remittance services can benefit from this feature. Successful currencies can be divided into smaller units. In order for a uniform currency system to function as a medium of exchange for all types of goods and values ​​within an economy, it must have the flexibility associated with this divisibility.

Another breakdown: 21 million bitcoins are far smaller than the circulation of most of the world’s fiat currencies. Fortunately, Bitcoin is divisible by up to eight decimal places. This makes it possible to distribute trillions of individual satoshis units in a global economy.

Because of this, Bitcoin has much greater divisibility than the US dollar, as well as many other fiat currencies.

For example, while the US dollar can be broken down into 1/100 of a USD, a satoshi equals 1 / 100,000,000 of a BTC. It is this extreme divisibility that makes Bitcoin’s scarcity possible. As Bitcoin continues to gain traction over time, users can participate in everyday transactions with tiny fractions of a single bitcoin. In contrast, a price of $ 1,000,000 for a BTC with no divisibility would prevent the currency from being used for most transactions.

Traditional cross-border payment solutions usually require a minimum amount and incur a fee, which makes micro-payments impossible; however, cross-border micropayments are possible with Bitcoin, and more use cases will emerge as development progresses.

Everyone eats

There are over two trillion galaxies, each with over a hundred billion stars. Such large numbers exist in the physical world but are difficult to understand. If my math is correct, 21,000,000 bitcoins can be broken down into over two quadrillion satoshis, which is a crazy number that is hard to get into my head. You can be put off by the current Bitcoin price. A friendly reminder that you don’t have to buy a whole coin to take part in the future.

Keep Stacking Sats Plebs!

There’s enough space to share Bitcoin to get into the hands of those who really need it the most. Have a great day!

This is a guest post by Paul Opoku. The opinions expressed are solely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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