Article Image

IPFS News Link • Bitcoin

Two Quadrillion Bitcoins

• https://www.lewrockwell.com

Divisibility is one of the important qualities of money, but is it a good feature if you are continually dividing something that has no substance?  Where is the end in that? If bitcoin can be divided into eight digits to the right of the decimal and eight digits to the left of the decimal (as it is now), does it really even matter where we place the decimal?  We still wind up with a maximum of 2.1 quadrillion bitcoin thingies. Why not just a maximum of two possible bitcoins with 16 digits to the right of the decimal?  Or, 21 bitcoins with 15 digits to the right of the decimal?  Or, two million with nine digits to the right?

With a maximum of two bitcoins, each bitcoin could be described as a much better value than it is nowadays. Talk of profits from a small initial investment could be greatly enhanced. The current level of bitcoins that have been put into circulation through "mining" would then be something like 1.679236869802712 instead of something like 16792368.69802712. We would have a much better value per coin of $131,059,952,096 rather than the measly $13,105 that one coin fetches under the current decimal chicanery. The number of crypto units would still be the same.

We often hear people saying that bitcoins are limited to 21 million. This is merely because the word "bitcoin" is defined as digits to the left of the decimal. But, the total number of crypto units would seem to be the more important factor for the currency's actual or perceived value. As it stands now, there are currently 1.67 quadrillion "mined" units of one common iteration of bitcoin competing in the bitcoin wars. Also, bitcoin forums frequently mention that miners could decide to increase the number of digits to 16 to the right of the decimal or to any other amount "if the need arises."  But, they also say that this wouldn't affect the fundamental value of each bitcoin since the amount to the left of the decimal would still be limited to 21 million. It would only enhance its usability in commerce they say. I don't quite understand that.


AzureStandard