I'll admit I'm not expert in mining. I know very little about it, in fact. What I'm wondering is what would happen if bitcoin's price reached a level that was so insane that 1 satoshi was something like $5 or even higher. Would that not screw up the entire bitcoin system? There would be no way to send small amounts of bitcoin or very exact amounts, much less pay a fee to the miners.
Am I missing something in that hypothetical case other than the fact that 1 satoshi will probably never be worth that much?
Am I missing something in that hypothetical case other than the fact that 1 satoshi will probably never be worth that much?
In that hypothetical case, you miss the fact that one bitcoin is going to be worth 500 million, and all the bitcoins in the world are going to be worth ~10 000 trillion, or about 120 times the GDP of the entire world. If that would happen in the next ten or 20 years a coffee cup would have to be 100 or 200$, so no point breaking satoshis.
And even in that case, there is still a possibility, a fork to further split satoshis in smaller denominations.
But I doubt we will ever reach that point.
Even at 1 cent/Satoshi, we're still talking about a bitcoin being worth 1 million, I can still an insane price level where it's still pretty much feasible to deal with it
The most important here is that there is always the development of better mining equipment that hopefully will do things faster and most importantly more efficient in the use of power (this is a big concern for many especially environmentalists).
Better miners don't make transactions happen faster and that efficiency is not what about the green environment but how many green bills you get for the power burned:P
If Bitcoin reaches 100k tomorrow, there will be 180 million to be earned, miners would be happy to spend 150 million a day on energy to get that.
At a price of 5 cents per kwh....you're not going to like the result
