If Cryptocurrencies used 2 decimals
Mind boggling thoughts deep down the Rabbit hole.
Imagine this: All Cryptocurrencies are integer numbers inside of every memory hardware. The decimals that you see, on any media, is actually artificial. The amount of decimals, used by any Cryptocurrency, is also stored as data in the form of an integer value. It could be 6, like in the internal HIVE market, or even just 3 decimals, as in the HIVE wallet. (And if I'm right it is set to 6, by default? You're welcome to correct me on this.)
The smallest part of 1 HIVE I named a Honeydrip, in a previous publication. If 3 decimals were indeed hardcoded than that would mean that you'd need a 1000 HNDs [HoNeyDrips] to make one HIVE. (Are you still with me on this?) Also, if 6 decimals were encoded in the amazing HIVE software than 1 million HNDs would make 1 HIVE. (For this article I will presume that HIVE does indeed use 6 decimals behind the curtains.)
The Banking Monetary Governance [BMG] system its money uses 2 decimals. (Might be 3 behind the scenes, for rounding off reasons.) You and I know the smallest part as 1 CENT. And you need a hundred of those to make 1 EURO, for example. It is a wild guess, I know, but all in all there might be close to 1 quadrillion [1 with 15 zeros] Euro monetized value available in the whole world economy. About 1 promille [symbol: ‰] of that is stored in our beloved Cryptocurrencies. And that capital is divided amongst tens of thousands of Cryptocurrencies and its Tokens.
The impact of the whole Crypto market is very small on the Global economy. Maybe that is why that cliche bankster (think in line of gangster) of the BIS [Bank for International Settlements] recently stated how 'the System' [short for the Banking Monetary Governance system] won and Bitcoin [BTC] lost. Still you and I apparently need to be treated as if we are criminals when we want to exchange Cryptos for banksters money. If 'they' considered themselves as 'winners' then why all those humiliating measures and rules for Cryptocurrency owners?
That banksters' bold claim tells me something different about them. As it seems 'the System' is mostly afraid to lose control (As 'it' seens to believe it has.) In fact the Cryptocurrency realm could function without any connection to the banksters their money system. It is like bridging from one system to another, where Euro would be locked on one side and pegged Euro could be used next on any blockchain. Users could of course move back and get cold hard cash out again. (That is if cold hard cash would usage were still a real thing.) But who would still do so if their pegged Euro could be used to pay and get payed anywhere?
And these could instantly get swapped for just about any other Crypto or Token on the market. It will be a proces that gets done in the background. All the supermarket would care for that it receives the pegged Euro in value. If this works like done in a jiffy, then the banksters might indeed lose (its believed) control almost completely. Even if 'it' will try to stop 'its' money from crossing the bridge over to the Cryptocurrency realm. Okay, now I'm getting back to why I took this apparent U-turn. Imagine now that indeed Cryptocurrencies became an autonomous substantive value exchanging system. Totally beating CBDCs [Central Banking Digital Currencies]. (It's not even legal tender as it is, only cold hard cash is. And guess what, the banksters want that to be changed by governments...)
But, for this Cryptocurrency thing to work as an autonomous value exchange system all Coins and Tokens needed to use 2 decimals. Now, technically this is not such a big issue. As the decimals to be used for display are an integer value variable. The value of a Cryptocurrency Coin or Token is stored as an enormous integer inside the digital memory hardware. For a visual effect the decimals are being used. If all Cryptocurrency developers would agree on using 2 decimals to display the amount of Coins and Tokens then there would be a new perspective on the value of each and one of them.
And that, dear reader, would be something big. Because all of a sudden you could see what enormous numbers and figures pop up. For a platform like Hive that might actually be a good thing. It is all in the decimals. And to make distinction between the current affairs and the 2 decimal system I am going to use the letter D. (Which stands for Decimal, of course.) Meaning, D-Bitcoin [DBTC] instead of Bitcoin [BTC] and D-HIVE instead of HIVE. Also D-Ethereum [DETH] instead of Ethereum [ETH]. Enfin, you get the picture, right?
First up, DBTC versus BTC. Because I lower the decimals from 8 down to just 2, the total amount of DBTC gets 6 zeros added. That means there will be 21 trillion Decimal-Bitcoin [DBTC] one day. And a Satoshi is 1 Cent, where a 100 of them make one DBTC. What about the value of 1 DBTC? Well, you'd have shift it's decimal place 6 times to the left. Assuming that 1 BTC is worth € 21.000,00 than 1 DBTC would be worth close to € 0, 02(1) and that's not a lot. Yet 21 trillion Decimal-Bitcoin could mean every one of the 8 billion humans on earth could own 2.625 DBTC. Buying those would cost € 55,13 and it's got growth potential.
Now, why do I think Ethereum and them lot alike are actually pretty much worthless? Because when I would decimalize its 18 to just 2, means a left shift of 16 decimals! Therefore, if 1 ETH does about € 1.400,00 then the 16 decimal shift left will give every DETH a value of € 0,000.000.000.000.14 (using European notation.) Also the 120 million ETH will turn into 1.200.000.000.000.000.000.000.000 or 1,2 septillion Decimal-Ethereum. And I cannot even use these numbers on the calculator of my 'smart' phone! But it is almost half a trillion times more than DBTC. (Correct me if I'm wrong.)
When I use the 2 decimal rule (rounded off to that also) then what could become obvious is how Decimal-Ethereum is pretty worthless compared to Decimal-Bitcoin. Every DETH would have the DBTC value divided by 500 billion. Translated to Ethereum that would mean 1 ETH could be have no more value than € 0,00.000.004.2 and that sounds crazy, right? Because it has got these Tokens that have like 10 quadrillion on the market. And I do not even want to hurt my brain by decimalizing them. Or even try and give them lot some graspable value. And so to me all of them Ethereum clones and 18 decimal using Cryptocurrencies or Tokens are totally worthless. Look at them transactions cost on those platforms though...
It is very weird to me to watch those Ethereum alike Cryptos get the value they have. It must be some kind of a believe system. It does not matter if the smallest part is called a WEI, it still takes 1 quintillion of them to create 1 ETH. Shifting the decimal places 16 to the left will show what it means in big numbers. But what about HIVE? Well, behind the scenes HIVE apparently uses just 6 decimals. Meaning the Decimal-Hive [DHIVE] only needs to shift 4 decimal places to the left. Its value would also go from 1 HIVE being € 0,40 to 1 DHIVE costing € 0,00.004 and that is not bad at all. Already that is a 1000 times better that DETH!
But wait, there is more... As the total amount of HIVE on the market is 372 million, that would make 3.720.000.000.000 DHIVE. Or only about 3,72 trillion Decimal-Hive would be on the market. If currently there are 19 million BTC on the market, then there would be 19 trillion DBTC. This would mean that DHIVE should be about 5,11 times more expensive than DBTC. Rounded off this would mean € 0,11 for every DHIVE. For HIVE this would be a value of € 1100,00? Well actually if BTC would cost € 21.000,00 then HIVE should be 5,11 times that! Meaning HIVE could be worth € 107.310,00 if decimals would matter. Resulting in a mind blowing market capacity of 40 trillion Euro!
Somewhere I probably will have made calculation mistakes. And maybe you and I do not even want HIVE to be 107'310 Euro, € 1'100 is already okay. Yet, getting this 2 decimal thing across might be tough. Even though it must be quite easy to grasp that 18 decimals, or 8 and especially 6 converted to just 2 put things Cryptocurrency value wise into a shocking different perspective. It shows how HIVE is actually pretty undervalued. And also that Ethereum and them 18 decimals lot are really worthless, from a 2 decimal point of view. But I doubt I get this through to those who believe in their favorite Cryptocurrency or Token.
Even Slothcoin [SLOTH] would leave ETH way behind in value, when considering the 2 decimal system as justified. And so are many UTXO Coins that might have been forgotten a bit. Though they still move about in a HIVE comparable price range. But there would only be one, looking at Cryptocurrencies from a 2 decimal perspective, and that is HIVE. And who knows, one day enough people might even get it.
And until that day comes only invest what you are willing and can afford to lose. ;-)
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