The price of Bitcoin is the talk of the town. Everybody thinks if only they bought a few bitcoins at 2 dollars each they will be super rich by now. In this article, I will share my point of view on why you are not too late to the party and why you should get some satoshis to protect yourself in the future.
You will need Cryptocurrencies
Cryptocurrencies are not just another step in the evolution of money. It is a radically different form of money. I will not go into all the details about why cryptocurrencies are radically different in this article, instead, I will go over how cryptocurrencies, specifically Bitcoin Cash can be useful in securing your future.
If you look back in history all fiat currencies (government-issued currency that isn't back by anything) go to zero, which means the currency's worth eventually goes down to the worth of the paper it is printed on and nothing more. There are thousands of fiat currencies throughout history, that ended up worthless. The currency issued by your government is no different. It is almost certain, it will end up worthless.
Maybe you didn't expect a scenario like worldwide monetary collapse, but when it happens the whole society will lose trust in the currency issued by the government at the same time. In that case, you need something of value to carry out your daily transactions.
When people start to look for alternatives, they can go for the time-tested store of value and medium of exchange like gold and silver or people can go for cryptocurrency because of their ease of storage, security and ability to transact over the internet. It is most likely not going to be one or the other, people are going to chose what fits their particular situation.
The key is to acquire your preferred backup option before a crisis hits. Remember, the best time to buy insurance is before the house is on fire. Let us assume you chose cryptocurrencies as one of your backup options. When you want to dip your toes in the world of cryptocurrencies, you might want to acquire small dollar amounts first and then move in with bigger amounts when you are feeling more comfortable. When you are buying for a few dollars or a few hundred dollars you will not buy a full bitcoin or bitcoin cash, instead, you will buy satoshis. So what are satoshis?
What is a Satoshi
Each Bitcoin or Bitcoin Cash is divided into 100 million satoshis, A satoshi is like a cent whereas Bitcoin/Bitcoin Cash is like the dollar. Imagine Bitcoin and Bitcoin Cash like a dollar with 100 million cents. Refer to the below chart to get an even more clear picture.
BTC Satoshis vs BCH Satoshis
Until now, I was using Bitcoin and Bitcoin cash interchangeably because they share a common origin. However, the BTC version of Bitcoin is not focused on becoming cash that can be used to transact anymore. Bitcoin cash network is focused on making BCH satoshis widely and easily spendable. So for the rest of the article let us ignore BTC and focus on satoshis you can spend, which is Bitcoin Cash.
Satoshis will appreciate in value
Only a maximum of 21 million Bitcoin Cash will ever be created but let us forget about 21 million BCH for a moment. Let us focus on 1 Bitcoin Cash. 1 Bitcoin Cash contains 100 million satoshis. As of now, 546 is the minimum number of satoshis that can be spent. As of now after factoring in the transaction fees more than 100,000 transactions of value exchange can be made with 1 BCH.
As Bitcoin Cash price increases, The minimum number of satoshis you can transact will be reduced and the transaction cost in terms of satoshis will also be reduced enabling you to make more and more transactions per BCH as the price goes higher.
If Bitcoin Cash were to gain worldwide adoption for peer-to-peer payments, everyone has to use a part of the total supply which is 21,000,000. If 7 billion people were to divide the total supply equally, everyone should have 0.003 BCH (300,000 satoshis). The cost of 0.003 BCH is less than 2 USD today. Yes, You read that right, for the price of a coffee you can secure your future in case of a monetary collapse. All you need to do is act now and keep your seed phrase/private keys secure. Remember you will need them, so take the extra effort now to secure your future. Now, back to satoshis.
Currently, BCH is very undervalued. For a price of a mobile phone in an underdeveloped country, You can buy 10 million satoshis of BCH (0.1 BCH @ $60).
How the future may look?
If the world monetary system collapses and cryptocurrencies emerge as a medium of transaction. The price of 1 bitcoin cash won't be the talk in our day-to-day life. It will be how many satoshis goods and services cost.
The future of prices will be like, Coffee @ 21 Satoshis, NY to LA flight trip @ 12,000 Satoshis. The majority of the world population will never get to own a full Bitcoin cash and it is not necessary as well. Those who get in early will get a much more prosperous life at a bargain price. People will live their whole lives off of satoshis.
What satoshis can buy in the future?
It may be tough to visualize how the future may play out if you don't have a sound understanding of the financial concepts. So, I made a handy little picture so that anyone can see how the future may pan out.
Should you just hold satoshis?
If satoshis are going to be worth so much, doesn't it make sense to just hold them in your wallet without spending? Yes but no. You can be a part of the movement which makes bitcoin cash more useful as peer-to-peer electronic cash by earning, saving, spending and replacing your satoshis with more productive work. If you use satoshis instead of just holding, the value of bitcoin cash will appreciate faster as more and more people are brought into the economic loop. Always remember your satoshis are more valuable when they can be exchanged with more people for more goods and services!
Note: The illustrations in the articles are my own and you are free to use them however you like.
Thanks for writing this, have read this and leart alot that will help me in the future of crptocurrency