Divisibility past a single satoshi

Given there are 100 million Satoshis in a single Bitcoin, so divisible down to 8 decimal places, under hyper-bitcoinisation where Bitcoin is the global currency is there enough divisibility in Bitcoin currently to satisfy global money supply. If a satoshi reached parity with $0.01 this would value Bitcoin at $1 million and the diluted market cap of Bitcoin at $21 trillion, roughly equal to the US M2 Money supply, however, considerably less than global money supply, quoted as up to $90 trillion. Therefore to adopt Bitcoin to a stage of global currency, would put it past $0.01 per satoshi and so theoretically would bring obstacles to transactions on small scales, increasingly noticeable fees on layer 2 solutions such as the Lighting network and disruption to operations of financial markets operations. Considering this potential issue, I have a few questions.

1) Is this a potential issue with divisibilty or is my interpretation off?

2) Is this a quick fix in the bitcoin protocol or would an update to address this issue create a version that is not backwards compatible with previous versions of the bitcoin software and possibly cause a hard fork?

3) Are layer 2 or further solutions the most likely outcome whereby smart contracts just further divide bitcoin up and move the decimal place, and if so does this run into any complications when attempting to settle on the main Bitcoin blockchain.

Any suggestions welcome 😉

submitted by /u/hel111999
[link] [comments]

Leave a Reply

Your email address will not be published. Required fields are marked *