Adopting Satoshi Standard Adoption – Bitcoin Magazine


This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. He spent four years in the infantry before transitioning to the Finance Corps.

While discussing the blind spots of Bitcoin with another Bitcoin Magazine contributor, we agreed that the lack of delineation between Bitcoin the asset, protocol and network may be one of the most salient issues holding back greater adoption.

The blind spot I want to address involves the 21-million hardcap meme, which is, in fact, a rounding error. I get it; it’s catchy and useful, like most memes are, but in a way, I think it’s actually holding Bitcoin back.

The Bitcoin network enforces the bitcoin standard on the bitcoin asset. The hard cap is actually 20,999,999.9769 bitcoin, with the 21 million being the limit in a math equation, not the maximum itself. Notice all the decimal points? As most of you are aware, the satoshi (sat) is the smallest denomination of bitcoin at .00000001 BTC.

If you think about it, though, if bitcoin is divisible and the satoshi is not, is the Bitcoin network not enforcing a satoshi hardcap? The Bitcoin protocol does not deal in fractions — only whole satoshi units. If you view it through that divisibility lens, it’s always been satoshis.

Source link Bitcoin Magazine


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