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The only evidence of creating value is generating sats flows

You're still thinking in terms of growing personal fractions of limited capital, and that achieving higher unit counts is the end all be all. With Bitcoin, you can sustainably spend sats and generate real world value while receiving back less sats.

Sats will always grow in value which means if done right a negative sats flow is long term sustainable. You can do more over time with a positive sats flow for sure, and the best businesses will achieve that, but a negative sats flow does not necessarily mean no value is being generated.

FIAT = Limited capital / unlimited units.

Bitcoin = Unlimited capital / limited units.

Big difference.

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Discussion

TheBitcoinBattery 5mo ago

Probably a controversial take, but it's true from my perspective.

My favorite part:

"FIAT = Limited capital / unlimited units.

Bitcoin = Unlimited capital / limited units.

Big difference."

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GRANTGILLIAM 5mo ago 💬 1

Negative sats flow is not long term sustainable. What happens once all your sats are gone? Doesn’t matter if value of sats is going up if you have none.

TheBitcoinBattery 5mo ago 💬 1

From the way things work right now with satoshis being the smallest unit of the network you are correct, but this is a network that will last thousands of years. Considering that long term outlook Sats will eventually be further divided with a BIP, likely within a decade IMO. If that indeed occurs, one can manage to never run out because they'll just use an ever decreasing amount of their stack over time.

GRANTGILLIAM 5mo ago 💬 1

Something kinda like this

TheBitcoinBattery 5mo ago 💬 1

My mathmatical training is failing me here, could you explain? I'm unfamiliar with this.

GRANTGILLIAM 5mo ago 💬 1

In each step the reduction is a smaller unit. First one half, then one fourth, then one eighth, and so on.

TheBitcoinBattery 5mo ago 💬 1

Okay yeah. I envision a future code addition to the halving cycle that increases the division by another decimal. So every 4 years when the halving cuts new supply by half, the total supply is further divisible by another 10.

GRANTGILLIAM 5mo ago 💬 1

The answer to that math equation is zero. Doesn’t matter if you keep reducing denomination. Negative sats flows eventually leads to zero.

TheBitcoinBattery 5mo ago

Eventually you would be spending such small amounts that you wouldn't be spending Sats quicker than the value of the remaining stack grows in value, effectively never running out.