Bitcoin is about to undergo a 1:1000000 "stock" split.
essentially, they want a base unit and a second unit being 1:100 of the first.
https://bitcoinfoundation.org/press-releases/press-release-october-7-2014-bitcoin-foundation-financial-standards-working-group-leads-the-way-for-mainstream-bitcoin-adoption-2/
We already have two units: bitcoin and satoshi
Therefore, the only way to make this possible would be to recalculate bitcoin as 100 satoshi (deep inside everything is measured in satoshis anyway).
So, everyone with a current BTC will suddenly discover that he or she will have 1000000 bitcoins (officially called XBT from then on).
I think that this will put new bitcoin/XBT on a path that will eventually lead to XBT=~$1 with each satoshi=~1c.
How long it might take-maybe 20 years. If this happens, current BTC would equal $1,000,000
essentially, they want a base unit and a second unit being 1:100 of the first.
https://bitcoinfoundation.org/press-releases/press-release-october-7-2014-bitcoin-foundation-financial-standards-working-group-leads-the-way-for-mainstream-bitcoin-adoption-2/
We already have two units: bitcoin and satoshi
Therefore, the only way to make this possible would be to recalculate bitcoin as 100 satoshi (deep inside everything is measured in satoshis anyway).
So, everyone with a current BTC will suddenly discover that he or she will have 1000000 bitcoins (officially called XBT from then on).
I think that this will put new bitcoin/XBT on a path that will eventually lead to XBT=~$1 with each satoshi=~1c.
How long it might take-maybe 20 years. If this happens, current BTC would equal $1,000,000
Coinbase has been using "bits": 1 BTC = 1,000,000 bits, 1 bit = 100 satoshi
So now the proposal wants to use: 1 BTC = 1,000,000 bitcoins , 1 bitcoin = 100 satoshi ?
I know, this is confusing, however since they will call a base unit XBT, there is no way they can call XBT "bit" because "bitcoin" is instantly recognizable, but "bit" is not.
I think that they are aiming to have just two units: bitcoin (XBT) and satoshi. If they will try to replace bitcoin with a term "bit" for XBT, there will be a huge resistance. However, if they simply recalculate bitcoin (XBT) as 100 satoshi instead of 100000000 satoshi, then they have a chance for the transition to go smoother.
Sounds like a reasonable proposition that could remove some barriers/confusion for the average Joe. Change is never easy, but it is occasionally worthwhile. And hey, Cheap Coins
Cheap coin indeed. Looking at a big balance of xbt would be interesting. Holders might be subject to The Wealth Effect - feel richer and maybe spend more xbt.
Guys, you are wrong.
They propose to have an iso currency code for bitcoin (e.g. XBT), a standardized bitcoin symbol ( e.g. BTC) and a subunit consisting of 100 satoshi's.
1 bitcoin will remain 100.000.000 satoshi's, no stock split or whatever...
I don't think so (at least at a first glance). They said:
Quote
In addition, the working group will recommend Bitcoin subunits. In a currency, there is usually a main unit (base), and a subunit that is a fraction of the main unit. Currencies today operate with two decimal spaces to the right ($1.00). In Bitcoin, there are currently eight so one could theoretically pay you 0.00000001 or one hundred-millionth of a Bitcoin. Not only is this confusing for consumers, it does not fit in existing systems and software for accounting practices.
Since bitcoin (XBT) will be clearly a base (main unit), then the only way is to make satoshi a subunit at 1:100 of bitcoin (XBT).
There is room in currency standard for a historical unit, which is what BTC will probably become. It will be just called BTC (not bitcoin) at 100,000,000 satoshi.