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This is a common trope people like to throw around, but for all practical intents and purposes it's not actually true. Each Bitcoin is divided into 100 million
by Etheryte 2y ago
This is a common trope people like to throw around, but for all practical intents and purposes it's not actually true. Each Bitcoin is divided into 100 million Satoshis. At current market price, this means you can divide each Bitcoin up into slices 0.05 cents thin. There is no scarcity, at least not for any reasonable time frame in our lifetime. Add to that the fact that many brokers today offer fractional shares on a lot of securities already and you can probably see where I'm going with this. You will always be able to buy however small of a fraction of a Bitcoin that you want.
- kjksf 2y agoI can "divide" a single $100 bill into 100 $1 bills. By your "logic" $1 is just as valuable as $100.
- Etheryte 2y agoThis misses the point. There is a scarce amount of Microsoft shares, but we don't talk about the scarcity of the shares driving the price, because that's not the reason that the stock has traded upwards. You can have scarcity on all kinds of resources - hell, this comment is scarce, it's one of a kind - but that doesn't mean it drives any kind of demand. All of this is econ 101.
- throw0101d 2y ago> There is a scarce amount of Microsoft shares […] New shares can be issued at any time.
- irthomasthomas 2y agoAnd a bitcoin can be divided at any time to create a transaction. The limit on total coins is irrelevant when they can be divided almost infinitely.
- justaj 2y agoBut division is not the same as addition. If MS issues new shares, they will increase the total amount of shares. If you divide one BTC into smaller parts, it doesn't mean that the total amount of BTC has increased.