There are lots of newcomers in cryptocurrency industry who assume that bitcoin is too expensive for them to purchase. Sure enough, for the past week, its price has been swinging between margins of $13,000-$14,000, and it could seem prohibitive for lots of people. Mainly, it is desperate for those, who live in developing countries, thinking of fast enrichment while receiving $200 monthly salary. However, the thing is that it is just a kind of emotional hurdle that halts them. Indeed, there is no need to buy the whole bitcoin as you can purchase its third fraction or even a share of one percent.
Often, green investors turn their eye to altcoins. But should they just blink their eyes, bitcoin ilks will grow in price, overcoming the margin of $1,000, as recently did ethereum and dash. And the price, once again, seems unaffordable to them. Therefore, they come to cheaper alternatives, like Dentacoin or Dogecoin, whose price is sub-$1 but the market cap overcomes $1 billion for each. With the desire to own the entire unit, people create a pump in the value of cheap altcoins.
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To withstand this jumble, a developer Jimmy Song offered to utilize bitcoin in “bits”, which is one one-millionth part of it. Publishing the standards proposal, he motivated BTC businesses, wallet providers, and exchanges to endorse the idea. Such standardization, Song believes, will push people to purchase the father of all cryptos more and make them slightly give up on technically weak altcoins.
This argument about bits vs uBTC is like a debate about whether to call your vehicle a car or an automobile. The latter might be more accurate, but the former is what people use. Also, what is wrong with having more than 1 name for something? bucks/dollars, quid/pounds, etc.— Jimmy Song (@jimmysong) 10 January 2018
Buying Bitcoin In Fractions
Currently, lots of new investors get scared of purchasing bitcoin fractions as, for example, the equivalent of $5 will look as 0.000345 bitcoin. That is more than confusing, but if we bought BTC in bits, as Song proposes, that would make 345 bits. Erik Voorhees, who is the co-founder and CEO of ShapeShift, the company, which endorses the developer’s offer, said:
"For whatever psychological reason, normal people have trouble understanding decimals and fractions. $0.002 is weirder than $200.00. For bitcoin to be a global, commonly used currency, it would certainly be helpful to have a denomination that allows people to express prices in integers (2,000 bits for a coffee) rather than a decimal."
According to Song’s belief, newcomers are not big fans of little amounts of BTC. Moreover, the developer banters bitcoin forks as they remove ‘unwanted’ decimal fractions.
Song is not the first one to offer such an adjustment, but his proposal may seem more relevant as it takes into account business needs, as ones of exchanges. Furthermore, his scheme can also be useful for other cryptos, e.g., ether.
Like any idea, Song’s proposal was partially met with backlash. Experts assume that there might be a lot of confusion unless all companies adopt the adjustment at a time, as they may think they earned gains or lost them. For instance, there is a possibility that there would be misunderstandings and bugs in case ‘bits’ become more popular. Nevertheless, it will be up to BTC market to endorse the new term or not.