The price of Bitcoin has gone through the roof recently, leaving a lot of people feel that it is too expensive for them to buy. However; Bitcoin investors have been warned that this is not the case, and it is in fact possible to buy half, a quarter or even a smaller fraction of one Bitcoin, which makes it far more accessible to others than it once was before.
When you look at Ripple for example it is worth just $1.82, whereas Bitcoin is worth $14,195, which is the exact reason that smaller, lesser known virtual currencies are actually becoming more popular, and even run the risk of overtaking Bitcoin completely.
Jimmy Song, a Bitcoin developer came up with the idea of purchasing smaller fractions of entire Bitcoins, and has proposed that one millionth of a Bitcoin should be called a ‘Bit’. Currently, $5 worth of Bitcoins is equivalent to 0.000345 Bitcoin; whereas with Song’s proposal, you would receive 345 Bits. This proposal can relate to Ethereum and other virtual currencies as well as Bitcoin.
However; there is some confusion surrounding this proposal, as there is already a term for fraction amount of Bitcoin, and this is the satoshi – it is the smallest unit of the Bitcoin currency that has been recorded on the block chain, and is one hundred millionth of a single Bitcoin.
For this proposal to work as well as it could, all wallets and exchanges would have to use the same term, otherwise it could result in people losing their money.
Erik Voorhees, who is the co-founder and CEO of ShapeShift, a popular Bitcoin Exchange is very much for this proposal, and believes that the period of transition will be worth it. He said;
“There will undoubtedly be some mistakes and friction as the new term gains usage, but for the purpose of language and mathematical simplification, the net result should be beneficial to Bitcoin’s adoption.”
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