Up to now, I believe the vast majority of people have heard of “bitcoin”. Although there are different opinions, from time to time we can see some news about “bitcoin” in various media. For the vast majority of people, it is difficult to understand why a “bitcoin” is worth more than 10000 US dollars, about 70000 RMB. Whether bitcoin is worth so much money is not what this article will discuss. I wonder if anyone has noticed that when we discuss bitcoin in Chinese, many people like to use “Ge” as the quantifier of bitcoin, which is often the source of many misunderstandings.
In fact, if you think about it a little bit, you can think that “Ge” obviously can’t be used to make money or other goods that need to be accurately measured. We will not talk about a RMB or a gold. If you use “Ge” as the quantifier of bitcoin, it is easy to have some misunderstandings. For example, many people who don’t know much about bitcoin think that bitcoin is purchased by “Ge”. Although there are many reasons for this misunderstanding, which will be discussed later, part of the reason is also the Quantifier “Ge”. Generally speaking, in Chinese, “Ge” is generally used for the concept of “integrity”, without distinction of size. You can say an apple or an earth. Many people think that the unit price of bitcoin is too expensive, so they can’t buy it. They don’t know that in fact, the so-called “piece” in bitcoin is a very large unit.
In addition, there is a completely opposite “misunderstanding”. Although it is rare now, there was a time when it was because of the use of “Ge” in Chinese that many people questioned bitcoin’s “infinite division” feature, believing that “infinite division” means no upper limit. For example, one “bitcoin” can be changed into ten “0.1 bitcoins”. In the Chinese environment, some people think that one “bitcoin” has become 10 “. It is because “Ge” in Chinese, it is easy to ignore the size of its unit of measurement, so this misunderstanding is caused.
Therefore, I think the best way to eliminate these misunderstandings is to try not to use “individual” to describe bitcoin in the Chinese environment. Because “bitcoin” itself is a unit, you can directly add “bitcoin” to the number as you usually refer to currency. It may be difficult to get used to it at first, but considering the possible disadvantages and misunderstanding, it may be very helpful for others to understand.
In the English context, we can notice that we all use BTC as a unit directly, so we usually say 1 BTC directly. Many people know that the smallest unit of bitcoin is Satoshi, which means “cong” in Chinese. This comes from Satoshi of Satoshi Nakamoto, the name used by the founder of bitcoin. 1 BTC = 100000000 Satoshi, that is to say, 1 bitcoin is 100 million. In addition, according to the currency code of ISO, the unit of bitcoin in the international standard will be marked as XBT, which can be seen in large European and American exchanges. Generally, XBT is used instead of BTC.
According to the common classification criteria, there are many other smaller units, such as CBTC (bit fraction), mbtc (millibit), mbtc (bit fraction), mbtc (millibit fraction), mbtc (millibit fraction), mbtc (millibit fraction) μ BTC (micro bit) and bits, corresponding to:
1 cBTC=0.01 BTC
1 mBTC=0.001 BTC
one μ BTC=1 bits=0.000001 BTC
1 satoshi=0.00000001 BTC
People often compare bitcoin with gold and think that bitcoin can be regarded as “digital gold”. Of course, it’s exaggerating to compare the size of bitcoin with that of gold, but it doesn’t prevent us from just comparing units.
As we all know, the maximum number of bitcoins is 21 million BTC. At present, the amount of gold mined in the world is about 170000 tons. If we directly compare the magnitude of bitcoin with that of gold, then 1 BTC is about “100 kg”. From this, we can see that 1 BTC is also a large unit. The common price of gold is calculated in grams, which shows that we may be able to use some smaller units to measure the usual price of bitcoin. From the order of magnitude difference between “100 kg” and “g”, maybe bits is a good choice.
In fact, as early as 2013, some people called for the common unit of bitcoin to be changed to bits. At that time, bitpay was the first follow-up. Later, similar to coinbase, users began to choose to use bits to display the price. After 2017, it has been proposed that the community can adopt bits as the default display unit of bitcoin price. So far, many exchanges support that users can choose to use bits as the unit of price display, but this is often not the default option.
If the price of 1 BTC is $10000, then the price of 1 bits is $0.01, about RMB 0.070. Does it feel that the price is close to the people in an instant. Some people may say that just changing a unit, changing soup without changing dressing, is the same as morning, evening and evening or morning, evening and evening. Is it necessary to make such a great effort to adjust?
In fact, the impact of price display is relatively large. The most famous case is “non integer pricing method (or mantissa pricing method)”, that is, you can almost see the price of a large number of goods in the market, and the end is often 9. For example, you often see 0.99 after the decimal point, or the price is 1499 yuan.
There are many people who have laughed at this way as a chicken thief and feel that it is totally unnecessary. Ron Johnson, a former senior vice president of apple, joined JCPenney, the largest department store chain in the United States, and Luo Yonghao, a hammer mobile phone maker, tried to refuse to use this pricing method one after another. However, in the end, it seemed that they were slapped by the market and had to change back to this pricing method. Both theoretical analysis and market results prove that small changes in these figures will have a significant impact on consumers’ purchasing behavior. Then, by modifying the bitcoin price display unit, the display price will drop significantly, which may have a great psychological impact on potential investors.
In addition, I don’t know if you have noticed that many exchanges and quotation software are designed according to the stock trading system. By default, the price displayed by the stock trading system is the unit price of the stock, that is, the price of each share, which is the smallest unit of stock trading and is indivisible. Therefore, it is likely that this kind of habitual thinking will make many people familiar with stocks apply this thinking to bitcoin trading. It’s easy for people who have just come into contact with bitcoin to think that this is the smallest unit of bitcoin trading, and the unit price of 60000 or 70000 will definitely deter many potential investors.
In fact, changing the display unit is not a rare behavior. In the traditional financial market, this kind of behavior is also very common. In the stock market, it is usually “split”. When the price of a stock continues to rise, the high price is likely to affect the purchase desire of investors, especially retail investors. At this time, the company will often consider splitting the shares. This logic is exactly the same as modifying the display unit.
Bob Lee of BTCC platform has repeatedly proposed that the industry need to change the common unit of bitcoin to mbtc（ μ BTC (9 mbtc for us $9000), but it is not accepted by most people. Many people are not against modifying common units, but have some different suggestions. Some people suggest using Satoshi to display directly, but there are still many people who suggest using bits（ μ BTC (0.009 bits for us $9000). Bob Lee thinks that the price of bitcoin was already high at that time, and changing it to mbtc could make more people accept it. The proponents of bits think that it is a big thing for the industry to modify the common units. If the price of bitcoin continues to rise, it is easy for mbtc to become unsuitable. It is better to change it to bits directly.
In writing, the author asked Li Lin, founder and chairman of the digital currency exchange. Li Lin said that he had no personal objection, “it mainly depends on the market acceptance. If you want to implement it, you may do a user survey and vote first. “
Therefore, if the whole industry can work together to change the bitcoin unit into bits, it may have a great impact on many people who are still waiting and don’t know. At least for those investors who just think that the unit price of bitcoin is too high, it will have a greater impetus. Obviously, the price of bitcoin has been at a low ebb for a long time, which is largely due to the lack of new investors. Unlike before the last bull market (such as around 2015), the current unit price of bitcoin has certainly deterred many people. The necessary condition to open a bull market is that a large number of new investors can participate in it, and adjusting the bitcoin display unit is likely to become the key to open a bull market.
Responsible editor; zl