Divisibility
One dollar can be broken into one hundred pennies. A penny’s weight in gold is worth $150. As you can imagine, that can cannot practically be divided into a small enough piece of gold to buy a pack of gum. Therefore, dollars are superior to gold in terms of divisibility. On the other hand, one Bitcoin, currently worth around $10,000, is divisible into 100 million units. These units are called satoshis. A satoshi is currently worth 1/100th of a cent. Again, advantage Bitcoin. An argument could be made that if Bitcoin appreciates to a certain value, it will no longer be divisible enough as could be useful. For that reason, it is worth noting that even if Bitcoin were to appreciate 100x in value in terms of dollars to become worth $20 Trillion ( twice as much as the global supply of gold), a Bitcoin would still be divisible into satoshis which would hold a value equivalent to that of a penny in dollars. It is also worth noting that Bitcoin’s combination of high divisibility and global portability which may be made instantaneous and fee-less depending on how Bitcoin continues to be developed could enable micro-payments to become possible in a way that money has never previously accommodated.
Last modified 2yr ago