The Little Guy in Bitcoin (BTC) Makes no Money Alts is Where money Is

Dan Held Shared: Bitcoin isn’t “too expensive.” You can buy 1 dollar worth of Bitcoin.

Community Response:  Well then, stop saying there are only 21 million Bitcoin as if the supply is limited to 21 million and there aren’t smaller denominations. How many ‘Bitcoin’ (SATS) are there if you can buy $1 worth of Bitcoin? There are quadrillions of pieces available. Not very limited.

“Well then, stop saying there are only 21 [pizzas] as if the supply is limited to 21 and there aren’t smaller denominations. How many ‘Pizza’ (slices) are there if you can buy 1 dollar worth of Pizza? There are quadrillions of pieces available. Not very limited”.

And, maybe make a dollar. That’s not including trading costs. There’s no real money to be made for the little guy in bitcoin. I pay close attention only because the market usually does whatever the the big guys make bitcoin do. Alts is where you can consistently make real money.

So much wrong thinking about BTC and the 1 dollar worth of BTC.

If you buy 1 dollar of bitcoin it could be 0.50 c tomorrow. If you buy 2400 sats today, it’ll still be 2400 sats tomorrow. If I buy 1 Turkish Lira today it will still be 1 Turkish Lira tomorrow.

Incorrect. 1 Turkish Lira today is not equal to 1 Turkish Lira tomorrow when they print more of it. This is precisely the point.

Inflation does not change a currency denomination. Only its purchasing power. 1 Bitcoin can buy me 10 cows today. Tomorrow, 1 bitcoin will still = 1 bitcoin but it can only buy me 5 cows. I am worse off.

Right now, Bitcoin is becoming monetized. Its purchasing power is very volatile.  In the short-term as it goes from being worth nothing to becoming worth everything. However, in the long term, it rapidly increases.

Once it becomes the sole unit of account around the world, its purchasing power will likely stabilize with a slight bit of deflation due to increasing population and continued technological progress. Until then, complaining about short-term swings is silly.

I do $5 per day and add lump sums on each larger dip. It adds up quickly! You are simply very wise.

Unfortunately, due to its rapid price appreciation, people will likely feel like they could have gotten a lot more sats for that $1 not long ago and will feel it’s not a good buy at this price.

That will always be the case, until their dollars become completely worthless. This is the interesting thing about brand new money becoming monetized. It’s both overpriced (in our minds) and under-priced (in reality) at the same time.

It all comes down to purchasing power.  Yes, then that 1 dollar would be worth 11 dollars when bitcoin hits 500,000.

Seems to be the best marketing campaign to get people to get that you don’t have to buy a whole bitcoin is to give them a free sat. Seems like that would be a great idea for a wallet.