Can someone explain to me the argument for denominating Bitcoin in bits (.000001 BTC) vs sats (.00000001 BTC)? I can't find a logical discussion anywhere just a bombastic jerk on twitter who keeps advocating for it and want to know more.
#Bitcoin #asknostr
I think you answered your own question.
Sats are the standard.
nostr:note1au8mqmh6g9qjhnrl0gnk3vg7c23245xtmsfklprh8plh2k3v853s5jufdx
What’s a sat? You mean a zap?
I think of it as bits is trying to go for dollar-bit parity for the mental model.
To rephrase, Bitcoin is broken into 100,000,000 pieces. If 100 of those pieces make 1 bit, it is easier mental math to price things in the smallest unit because we are used to $100.00 in everyday life. As opposed to 10,000 sats takes more mental math to comprehend. You don't think of how many pennies you are spending to fill up you gas tank or how in a few years you will be spending 10,000 pennies for a loaf of bread.
But thinking in sats is no different than thinking in any other currency conversion. Try mentally pricing things in Euro's for a week and you won't wonder why they eat things like Marmite.
Sats are the standard.
Once you hit dollar-sat parity the entire mental model needs to shift anyway.
