A Thousand Sats

publishdate: 2023-11-30 t20:22:00-12:21
title: A Thousand Sats
author: blogging bitcoin
description: Knowing the price of a thousand sats makes it easier to price the world in sats. In this blog I'll teach you how to learn the price of bitcoin without ever looking at the price.
image: category: narrative
tags:

• bitcoin

• unit of account

• peer 2 peer

• p2p

• value 4 value

i listened to a non-bitcoin podcast a few months ago. it is of interest for the readers of this blog because he participated in the value 4 value model on fountain.fm. he said somethig i've never heard before, but resonated with me. ads pay the podcaster a certain number of pennies per download. maybe it was a penny and a half per download. that's not the actual number, i just made it up, but it was somewhere in that ballpark. therefore, if a listener sends you 1,000 sats, it's as if that listener is worth 20x that of a listneer who is counted for ad revenue. at the time, 1,000 sats was a quarter. today, a thousand sats is 42 cents.

When i zap someone 1,000 sats, i zap them 42 vents worth of value. i expect the value of those sats to go up, for sure, but it's a metric ass-load more than the amount a couple attentive ears that fast forward through ads are. ads have become the defacto way of funding online content creators because the internet did not have native money. we are gamed by algos tnat know the type of woman or man we are attracted to and what political red buttons will piss us off the most and keep our eyeballs chained to the screen. Why? To watch more ads.

A thousand sats is an important yardstick. This podcaster who's name eludes me said knowing the price of 1,000 sats makes it easy to calculate the "price of bitcoin" (a.k.a. 100,000,000 sats).

What a silly measurement a hundred million sats is to compare to a dollar, but so is so is the situation. In my ”stay huble and stack sats” opinion, 1,000 sats is a better comparison to the dollar than 100,000,000 sats is to the dollar. 1,000 sats = 42 pennies. this means 1,000 sats are worth 42% of a dollar. So a hundred sats is worth almost a nickle, again, for now. You could send someone a fifty cent piece in the mail. Who would know about it other than the sender and reciever? I don't know, but a stamp costs 60 cents. This makes sending 50 cent pieces overnthe United States Postal Service cost prohibitive since it would cost $1.20 + the cost of an envelope tomsend 50 cents worth of value. You might be able to send 50 cents of value to a content creator using Patreon, but the costs associated with it are cost prohibitive just like sending coins in the mail using the USPS.

Most people almost never send $42,000 to anyone. They might do it to buy a house, but on rare occasion. You would not use a credit card to put a down payment on a house, you would use a bank wire. Bank wires are a thing, but think about how many times you have used a bank wire. No wonder so many normies find bitcoin useless. Most people will never be able to send $42,000 to someone to buy a house these days, unless they bought a house before the money printers went brrrrrr.

When the price of 1,000 sats reaches 60 cents again, the price of 100,000,000 sats will reach $60,000. Normies will say, "Damn it! I wish I bought bitcoin when it was under $20,000! I guess I'm too late now." I'll just pinch pennies, get a second job and gamble on RobinHood to stack more USD in my Bank of Devaluation savings account.

The Curious Case Of Stamps

I remember when a stamp was 42 cents. I remember when stamps were a quarter. I don't look at the price of stamps these days and yell, "damn! I should have bought stamps when the were 25 cents! i guess i'm too late now. I better use carrier pigions.

Stamps are issued by the USPS. I think this is a publiclyntraded company now, but the Post Office was created by the constitution of the United States making it one of he oldest of alphabet government agencies. Stamps are issued by this agency, little bits of paper with a dry adhesive that becomes sticky when licked. Licking a stamp gives you the ability to send a letter anywhere in the country. We don't use them much nowadays, but this government printed paper has one peculiar quality--They increase in value.

There are stamp collectors. Some stamps are more rare than other stamps, but Forever stamps are not. Forever stamps are fungible. A forever stamp bought for a quarter in 1983 can be exchanged for 60¢ worth of value today just by the simple act of licking it. We might say forever stamps appreciate, but I prefer the term deflate. Forever stamps deflate relative to the dollar.The stamp does not give you more service as compared to 40 years ago, but the price is locked in. The owner of 20 forever stamps knows he can send 20 letters now and forever.

The same is not true for other government backed pieces of paper. 100k now will be a nice down payment on a 3 bedroom house today. It will almost certainly not buy as much house 20 years from now. This is because stamps are a service and fiat currency is nothing but political lip service.

The bitcoin Time Chain was born out of the idea of a digital stamp. Hash Cash is a digital stamp that required an email client to calculate a SHA1 hash with a certain number of leading hex 0’s in front of it before sending an email. This digital stamp creation is so similar to bitcoin, Satoshi included a reference to it in the white paper.

People have a hard time understanding how money can go up in value, but accept the price of forever stamps and rare stamps go up in value. Bitcoin is more like the stamp than fiat currency. I think it's time we start treating it as such.

A Thousand Sats Is A Unit of Account

A thousand sats is a unit of account. It's an easier number to work with. When I bought coffee with bitcoin the other day and it's like 100k sats, i know that it will cost me about $42.00 worth of my fiat bullshit pay. It was acvtually $38.00 last week. That's the second interesting thing this podcaster pointed out. If you know the price of 1,000 sats is a quarter:

• 10,000 sats = $2.50
• 100,000 sats == $25.00
• 1,000,000 sats == $250.00
• 10,000,000 sats = $2,500
• 100,000,000 sats = $25,000

of course, it's easier for most people to calculate the price when the price of a thousand sats is 25 cents. if that's how you feel, that's okay. Calculate it that way. If i know a million sats at 25 cents per thousand sats is 250 bucks then I can find the real price by switching the first two digits with the actual price of 1,000 sats. At 42 cents, a million sats is $420.00. that's an easy number to remember, even and especiallly if you're a pot head, but that's not what I mean. If 1,000 sats was 38 cents like it was last week, the price of a million sats would be $380 bucks.

Not Everyone Can Own 100,000,000 Sats

This is a bitcoin meme these days. The idea is there are not 21 million millionaires in the world so not all of them can own 100,000,000 sats. I dislike this meme. I don't think we should point out that not everyone can own 100,000,000 units of a something. Duh, butnwe can show people a thousand sats is within their reach.

Blogging Bitcoin
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