Why was The Price In Sats created?
Well, The Price in Sats website was created with a simple idea in mind. It was to show the everyday basket of goods, the things you buy, bread, milk, butter in the smallest denomination of Bitcoin (BTC), a ‘Satoshi’.
So first of all, we take over 6000 items from a local supermarket here in the UK. We put the price of those items into 10 different currencies from U.S. dollars to great British pounds and then we convert those prices into SATs. The smallest denomination of Bitcoin and what you're left with is a price that every user can understand and one that can all relate to. I’ll explain more below.
What is a Satoshi or Sat?
“Sats” is short for Satoshis, the smallest unit of Bitcoin (BTC). One Satoshi (sat) is equal to 0.00000001 BTC.
But why talk about Sats, I’ve only heard of Bitcoin?
Well, people often talk about Bitcoin and all they focus on is the price and how quickly it has grown over the past 13 years ago when it might have cost a few dollars to buy a single Bitcoin to today when it's over $40,000.
The problem is for the world's thinking, $40,000 is quite difficult to comprehend, it's too high.
It's simply too big of a number and that leads people to have a negative view of bitcoin, whether they believe they got in too late and look for other cheaper cryptos or it’s a bubble about ready to pop.
After all what would you buy for $40,000? A car in some parts of the world, a house in other parts of the world? You're certainly not thinking about your everyday items like your bread and milk. But that's the long term goal of Bitcoin and the reality that is steadily being built by dedicated teams across the world.
Today you can already load up a card with Bitcoin and buy your groceries, you can pay for your hotel booking on several websites and you can even place a bet. But, this notice of Bitcoin being ‘too expensive’ persists. This is what I hope to change with The Price In Sats website.
When it comes to a currency, it needs to be divisible and presentable and usable the world over, you need to think about your everyday shopping items.
Take the example below a loaf of bread:
in dollar terms It is $2.21, that’s great if you are American, but what about if you are in Japan?? Would you know it is 273 Japanese Yen? It is likely to be complicated and difficult. Now if you consider the same item in Bitcoin, we can see that it is 0.00005052 BTC. Now, this figure is the same the world over, but it is long, complicated and you might miss a zero for really small items.
This is where Satoshi’s or SATs come in. That same loaf is now 5,052 SATs – it's short enough to go on a shop label, easy to understand and unlikely to be misinterpreted.
Go ahead, take a look at a few more items on the website https://thepriceinsats.com and see what things cost.
What about the future?
I believe bitcoin will continue to grow and in doing so, make the idea of pricing in Sats, a must. No longer will you stroll around your local supermarket, looking a Fiat pricing, instead you will be able to see the price of Items denominated in Sats and you will be able to compare that price the world over.
Finally, when you travel, you will know exactly if a place is cheaper or more expensive than your home town.
I hope that gives you a good understanding of why I created The Price in Sats website and you will read future blogs that examine more about this fascinating world.