Is Bitcoin Real Money?7 min read

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Bitcoin does not benefit beneficiaries of the fiat pyramid scheme. Tax-dodging billionaires who get free money from the government making the rest of our money worth less are at the top of the pyramid and they're loving it! (credit iTruth84) Billionaires get all the benefits of inflation. All the ill effects are dumped on us! To convert national currency to the bits unit, you first need to know the exchange rate. In this example, we’ll use the current BTC/USD exchange rate of 1 bitcoin being worth around $7500 USD. Multiply $7500 by.000001 to determine how 1 bit is worth: $7500 ×.000001 = $.0075. So 1 bit is worth $.0075. As mentioned before, a Satoshi would be worth $0.10 or $1 if BTC’s price reaches $10 million or $100 million. At this point, you’re looking at a unit that most people would understand when gambling online. Is It Realistic for Satoshis to Be Worth $1? A Satoshi reaching $1 isn’t necessarily just about Bitcoin.

Money

As the adoption of Bitcoin grows and it continues to gain acceptance across the world, it’s important to consider what makes it a superior form of money. For something to be considered money, it must perform three primary functions:

This is a simple calculator that converts BTC / Satoshis (0.00000001 ฿) to world currencies like USD / EUR / AUD etc. This live Satoshi converter not only converts but also shows the current value of Bitcoin or Satoshi in your currency.

  • a store of value
  • a medium of exchange
  • a unit of account

What makes Bitcoin a good store of value?

In order to evaluate Bitcoin as a store of value, it helps to consider the history of money. Over the course of human history, there have been several iterations of money such as cattle, animal pelts, mollusk shells, precious metals, and the coins manufactured from these metals. The underlying principle behind why these items were considered valuable was the fact that they were scarce at the time. These items became less scarce over time and of the precious metals used as currency, gold was found to be the most scarce since it is one of the rarest naturally occurring metals on earth, and mining it is difficult and dangerous. As we’ll discuss later in this article, the amount of gold mined every year is a small percentage of the total supply of gold in the world. This is what made it a good store of value and useful as a currency.

However, gold can also be heavy and hard to transport which is why it started being used in the form of coins. The problem with coins was that traveling with a large amount of them could be a security issue because if anyone came to know about them, the traveler would become a target for thieves and robbers. Additionally, they could be counterfeited and a regular person would not have the knowledge or equipment required to verify that they were real which led to people relying on goldsmiths as safe-keepers and verifiers because of the inability to verify it themselves. In return for their deposit, the goldsmith would give them a receipt and if the goldsmith was well-known and reliable, this receipt could itself be used as currency because it was redeemable for gold. This is how gold-backed paper currencies became popularized and were used for centuries.

Governments realized that having currencies backed by gold was restrictive to their monetary and fiscal policies so, in the 1970s, the US followed by the rest of the world abandoned this gold standard in favor of the fiat currencies they use now. Fiat currencies are currencies that are no longer redeemable for a scarce and valuable asset but instead are supposed to hold value because of the authority of the governments that issue them. This makes it easy for governments to create new money for spending but is an issue for citizens because the creation of new money diminishes their purchasing power. For example, the US government has increased the money supply by over 25% just in 2020 from $15.33 trillion at the end of 2019 to $19.19 trillion at the end of 2020, which will undoubtedly lead to inflation and loss of purchasing power for citizens. Despite moving away from the gold standard, most sovereign governments still hold large gold reserves because of its scarcity properties.

What Is A Satoshi's Worth In Real Money Today

Bitcoin is often referred to as “digital gold” because of its scarcity but the comparison doesn’t really paint the complete picture. While gold has relative scarcity, Bitcoin has absolute scarcity. There will only ever be 21 million coins mined, with the mining scheduled to end in 2140. Bitcoin has a predetermined schedule of new supply being mined every 10 minutes and this new supply is halved every four years making it scarcer over time regardless of demand or price increases. In comparison, the total supply of gold is estimated to be 197,576 tonnes by the World Gold Council but independent estimates vary by as much as 20%, while its new supply being mined has also been increasing over time.

As mentioned before, gold can be counterfeited and it’s hard for an average person to verify its authenticity. In contrast, it is theoretically impossible to counterfeit Bitcoin and it is simple to verify. Due to gold’s issues of divisibility and transport, it has been stored by governments and central banks in vaults giving them power over record keeping and seizure while Bitcoin uses a decentralized network for settlement which means no government or entity has control over it.

What makes Bitcoin a good medium of exchange?

Bitcoin addresses the issues of portability and divisibility of gold. Unlike gold, Bitcoin can be transmitted over several communications channels with a high level of security making it highly transportable. It would also be much easier to travel across borders with Bitcoin than gold since gold has historically been a target of confiscation by governments.

As a medium of exchange, Bitcoin’s base layer currently has some issues with scaling. With the growth of the network and Bitcoin’s popularity, the number of transactions has grown and the fees have gotten more expensive but although the throughput was increased with the Segwit protocol, it still requires the need for a proper scaling solution to handle micropayments. This causes congestion in the blockchain in which those who pay lower fees have to wait longer for their transactions to be confirmed. The Lightning Network was created as a second-layer solution to address these issues. Fees on the lightning network are minuscule compared to base layer transaction fees and it is also capable of millions of transactions per second settled almost instantly. With the Lightning Network continuing to be adopted as the scaling solution for Bitcoin payments, the use of Bitcoin as a medium of exchange will continue to grow as well. Many businesses today are already enjoying the benefits of the Lightning Network for accepting Bitcoin as it comes with faster settlement times and lower transaction fees than any fiat payment processor.

What makes Bitcoin a good unit of account?

Money

Each Bitcoin is divisible into 100 million units referred to as “satoshis” and gold is hard to divide into units of small value due to its density. As time goes on and Bitcoin’s value increases, satoshis are looking to be the unit of account we will refer to when pricing items. Just as the Dollar or the Euro can be broken down into cents, a Bitcoin can be broken down into sats for pricing goods or services. Additionally, satoshis can be further divided into milli-satoshis on second-layer protocols like the lightning network. At the time of writing, 1 sat is equal to .000520 USD and with 100 million sats per Bitcoin, sats make it easy to do microtransactions in Bitcoin. Also, unlike paper cash that currently acts as a unit of account for currencies like USD or the Euro, sats can not be hyper-inflated as there will only be 21 Million Bitcoin in existence, thus giving sats the case to be a great unit of account.

One of the issues that make it difficult for Bitcoin to be used as a medium of exchange and unit of account is its volatility in terms of fiat currencies. At OpenNode, we address the issue of Bitcoin’s price volatility with our instant exchange feature. This allows the user to instantly convert their Bitcoin into one of the many fiat currencies that we provide the option to convert to. We also make it easy for merchants and individuals to use the lightning network and take advantage of the lower fees and faster transactions.

References

  • https://www.gold.org/about-gold/gold-supply/gold-mining/how-much-gold#:~:text=The%20best%20estimates%20currently%20available,in%20one%20form%20or%20another.

What Is Bitcoin Faucet?

Outstanding amongst other known wellsprings of free Bitcoins (and different cryptographic forms of money) is a spigot. A spigot “trickles” limited quantities of cryptographic money over a set timeframe (various rates for every fixture).
Bitcoin fixtures change in the sum they payout, however, most installments are in the scope of hundreds to thousands of satoshis. At the hour of composing, 100 satoshis (that is 0.00000100 BTC) is worth $0.0036. Not much all alone, yet on the off chance that you come back to the fixture enough, you will in the long run have some cryptographic money to play with.
However, amassing the coins isn’t in every case enough. Much of the time, the spigot expects you to hit a base payout level before discharging your cryptographic forms of money into your wallet.
There are a huge number of Bitcoin fixture destinations and hundreds all the more contribution diverse cryptographic forms of money of changing worth. The real worth in buying in to and gathering installments from digital currency spigots is a fascinating worth inquiry: Are the installments so little that it does not merit your time? Or then again do you attribute to the “esteem included after some time” hypothesis?

“Bitcoin Faucet Websites”

1-Freebitcoin

FreeBitcoin only pays out once an hour, but it also hosts weekly lotteries that can get you up to one bitcoin. In addition to that, there’s a lifetime 50% referral fee. By certain estimations, this webpage is the biggest Bitcoin spigot on the web, which makes it one of the most dependable. There’s also a very simple interface, making it simple to claim your bitcoin.

2-Moon Bitcoin

This is a mainstream Bitcoin faucet. It pays out every five minutes, has a referral link to help you make more money, and is straightforward to use. You can simply leave the browser open for five minutes, claim your bitcoin then start over again. Another reason people like this faucet is that it allows you to also collect altcoins like Dash. If you sign in daily, even if you only claim once, you’ll get a bonus. (This site also operates sister sites for other cryptocurrencies, Moon Bitcoin Cash, Moon Dogecoin, Moon Dash, and Moon Litecoin).

3-btcclicks

This is one of the early faucets and has been paying users since 2013, so it’s legit. The real earning potential here comes from the combination of the 0.00019 mBTC per click and the affiliate marketing system. When people use your link, you can make up to 80%. In general, commissions run between 40% to 80%, according to their website. The one drawback: you need 0.10000 mBTC minimum to cashout, so you likely need that combo to get to that amount of money.

4-bonusbitcoin

This site claims that users can earn up to 5,000 Satoshi every 15 minutes, depending on how many people are online at one time. This site is completely free, and pays out a 5% bonus for the previous day, as long as you come back and use it on sequential days.

5-cointiply

This is one of the highest-earning Bitcoin faucets. They offer various ways to earn like watching videos and doing tasks. They also have a Multiplier game where you can wager your coins to win more. Additionally, there’s a lifetime referral bonus of 25%. Withdrawals are done to either a Bitcoin wallet, Faucethub account, or DOGE wallet and have no withdrawal fees attached.

6-Bitcoin Aliens

Bitcoin Aliens started in 2014 and from that point forward has given $7 million in Bitcoins (more than 1,090 Bitcoins) to clients. It is worked for Mobile utilize as it were.

Features

Bitcoin Aliens is an energizing game, not at all like different outlets where you perform tedious undertakings again and again. The game is fundamentally about an outsider passing through space and maintaining a strategic distance from a wide range of snags. The further you drive your outsider, the better you’ll acquire.

This is one instance of eating your cake and having it. All the while, you’re making money and getting engaged. Lamentably, it is just reachable for Android and iPhone.

This fixture pays a surmised of 4300 satoshis every hour (about $0.4). So as to get to this, you’ll be on the application for the whole hour. It has no hourly withdrawal restrictions.

Satoshi net worth

Pros

  • It includes gaming, which makes acquiring fun.
  • This spigot has one of the greatest payout limits.
  • Up to 4300 satoshis is payable for each hour.

support devices

  • Only accessible on Mobile, not iOS or PCs.
  • You must play for an hour to earn all 4300 Satoshi.

7-Blockchain poker

Blockchain Poker is a Texas Hold’em cash game where Bitcoin is used for playing table games. It’s a one table and no limits game. The players can retain anonymity if they so wish; there is no requirement to sign up.

What Is A Satoshis Worth In Real Money 2019

Features

players are provided with free Bitcoins which they can start playing with. Even without any Bitcoin in their possession, people can participate using the bonus satoshis. If during play, your income dips lower than 50 satoshis, you can revert it back to 100 satoshis. This is done every 3 minutes. A user can choose between earning in Bitcoin and Bitcoin Cash too. The minimum amount to withdrawable is 100,000 Satoshis.

Pros

  • One of the most entertaining and best Bitcoin faucets ―It provides a refreshing and innovative platform for earning free Bitcoin.
  • Players can choose to remain nameless.
  • You can play with or without having a Bitcoin reserve.
  • First-timers gain a welcome bonus.

Cons

  • The least amount withdrawn is 100,000.
  • Some anonymous users may duplicate accounts and sit on the same table. This encourages cheating and fraud.

8-satoshi Quiz

Satoshis Quiz is among the best Bitcoin spigots of 2020, where the client answers a test so as to win bitcoins. To win Bitcoins from Satoshis Quizzes, you should be positioned among the first three clients to answer effectively. Your position decides the bring home prize.

Features

You win bitcoins by your position. first prize successes 60%, second prize successes 30%, third prize successes 10%. The general test prize is additionally positioned from most elevated to most reduced, with the most reduced getting a bigger prize and the least accepting practically nothing.

Costs differ per question, with certain inquiries being esteemed more than others. You are furnished with 10 lives to react to inquiries with and for each off base answer you lose a real existence. At the point when the lives are at zero, the client can’t answer to inquiries until the following hour, when the lives are revived.

The withdrawal can be gotten to each Sunday. Furthermore, the least installment you can pull back is 11000 satoshi.

Pros

Bitcoins can be won hourly.

What Is A Satoshis Worth In Real Money Right Now

It doesn’t require any expense to start playing.

Cons

The withdrawal time period of time every week might be too long when critical cash needs emerge.

Satoshi Value

You need to remain for an hour to get new lives.

How Much Is One Satoshi

You could sit around idly playing the game however gain nothing significant in light of the fact that you didn’t take the main position.