Inflation is a silent enemy that robs people of their life savings over time through higher expenses and cost of living.
According to Yahoo!, millions of baby boomers will become homeless over the next few years as they watch their life savings disappear due to the devaluation of the US dollar and fiat currencies.
This is a global problem that affects both western and developing countries across the globe. No matter where you live, I think it’s obvious that fiat money will slowly move to its overall intrinsic value of zero over the long run.
What’s a realistic solution to this problem: Stack Sats (Satoshis) not Fiat Money
Investing in Bitcoin is a guaranteed way to build up a savings in a fiat based world. Stacking sats works wonder but I also advocate calculating income and expenses in Satoshis to fully understand how much time and energy (based in Bitcoin) you are earning and spending.
What are the Benefits of Calculating Income and Expenses in Satoshis?
Calculating income and expenses in satoshis offers several benefits, and here they are presented in a natural language processing (NLP) friendly format:
- Precision: Working in satoshis allows for extremely precise financial calculations, as one bitcoin is divisible into 100 million satoshis. This precision is especially useful for microtransactions and fine-grained financial analysis.
- Reduced Error Margin: Dealing with smaller units reduces the risk of rounding errors, ensuring that your financial records and calculations are more accurate.
- Global Standardization: Satoshis provide a universal unit of measurement for cryptocurrencies, making it easier to compare and transact across different blockchain networks and crypto assets.
- Favorable for Small Transactions: Satoshis are well-suited for small-value transactions, such as micropayments and tipping, as they don’t carry the high nominal values that bitcoins do.
- Enhanced Scalability: When dealing with cryptocurrencies at scale, expressing values in satoshis can help manage large numbers more efficiently, both in terms of storage and computation.
- Adaptability to Bitcoin Price Changes: As the price of Bitcoin fluctuates, working in satoshis allows you to maintain consistency in your financial planning without having to constantly adjust for changes in the price of one Bitcoin.
- Improved Budgeting: Expressing expenses and income in satoshis can simplify budgeting and financial planning, making it easier to track and control your cryptocurrency finances.
- Privacy Benefits: Satoshis can enhance privacy since they obscure the actual values involved, which can be useful for financial transactions where discretion is desired.
- Educational Tool: Calculating in satoshis can help individuals and businesses understand the fundamental units of Bitcoin better, promoting a deeper knowledge of cryptocurrency.
- Future-Proofing: With the potential for increasing adoption of cryptocurrencies, using satoshis can future-proof your financial systems and records, ensuring they remain relevant as the crypto landscape evolves.
How to Calculate Sats to Fiat Money Easily
I use this Satoshi to USD calculator to quickly convert sats to fiat whenever I need to figure out how much money I’m spending.
Or you can look up the current Bitcoin price online then divide it by 100 to figure out how much 1 million Satoshis is worth. Use that as a guide for smaller transactions to quickly calculate how many sats each transaction costs.
Will 1 Satoshi Equal 1 US Dollar in the Future?
Since Bitcoin is a deflationary asset, I believe it’s only a matter of time until 1 satoshi equals 1 USD.
Based on historical Bitcoin prices, I estimate that will happen between 2033 and 2035.