Up to now, I believe the vast majority of people have heard of “bitcoin”. Although there are different opinions, there are some news about “bitcoin” in various media from time to time. For the vast majority of people, it is difficult to understand why a “bitcoin” is worth more than 10000 dollars, about 70000 yuan. 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, when we think about it a little, we can think that “Ge” is obviously unable to be used as money or other items that can be accurately measured. We will not talk about a RMB or a gold. If “Ge” is used as the quantifier of bitcoin, it will easily lead to some misunderstandings. For example, many people who do not know bitcoin well think that bitcoin is purchased according to “Ge”. Although there are various reasons for this misunderstanding, which will be explained later, part of the reason is also the Quantifier “Ge”. Generally speaking, in Chinese, “Ge” is generally used for the concept of relative “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 the so-called “Ge” is a very large unit in bitcoin.

In addition, there is a completely opposite “misunderstanding”. Although there are few now, there was a time when “Ge” was used in Chinese, so many people questioned the “infinite segmentation” feature of bitcoin and believed that “infinite segmentation” means that there is 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” bitcoins “. It is precisely because “Ge” in Chinese makes it easy to ignore the size of its unit of measurement, which leads to this misunderstanding.

Therefore, the author believes that the best way to eliminate these misunderstandings is to try not to use “Ge” to describe bitcoin in the Chinese environment. Because “bitcoin” itself is a unit, you can directly add “bitcoin” to numbers when you usually mention money. It may be difficult to get used to at first, but considering the possible disadvantages and misunderstanding, it may be very helpful for others to understand.

In the English context, it can be noted that BTC is directly used as a unit, 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 (Nakamoto), the name used by the founder of bitcoin. 1 btc=100000000 Satoshi, that is to say, 1 bitcoin is 100million Cong. 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 exchanges in Europe and the United States. Generally, it is written in XBT rather than BTC.

According to common classification specifications, there are many other smaller units, such as CBTC (bit minutes), mbtc (millibits) μ BTC (micro bit) and bits correspond to the following:

1 cBTC=0.01 BTC

1 mBTC=0.001 BTC

one μ BTC=1 bits=0.000001 BTC

1 satoshi=0.00000001 BTC

Some people often compare bitcoin with gold and think that bitcoin can be regarded as “digital gold”. Of course, it’s too exaggerated to compare the current bitcoin volume with gold, but it doesn’t prevent us from just comparing units.

As we all know, the upper limit of bitcoin is 21million BTC. At present, about 170000 tons of gold has been mined in the world. If the order of magnitude of bitcoin is directly compared with that of gold, then 1 BTC is about “100 kilograms”, which shows that 1 BTC is also a large unit. The common gold price is calculated in grams, which shows that we may use some smaller units to measure the ordinary bitcoin price. Judging from the order of magnitude difference between “100 kg” and “g”, perhaps bits is a good choice.

In fact, as early as 2013, some people called for adjusting the common unit of bitcoin to bits. At that time, bitpay was the first to follow up. Later, similar to coinbase, it also began to allow users to choose to use bits to display prices. After 2017, some people have raised the hope that the community can adopt bits as the default display unit of bitcoin price. Up to now, 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 a BTC is $10000, then the price of a bits is $0.01, about 0.070 yuan. Does it feel that the price is close to the people. Some people may say that just changing one unit without changing medicine is the same as changing from day to day. 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 the “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 that the price is 0.99 after the decimal point, or the price is 1499 yuan.

There are many people who have laughed at this way as a way of chicken thieves and felt it was completely unnecessary. Ron Johnson, who once served as a senior vice president of Apple Computer and later joined JCPenney, the largest department store chain in the United States, and LuoYongHao, who engaged in hammer mobile phones, tried to refuse to use this pricing method one after another, but they all seemed to be slapped by the market and had to change back to this method. Both theoretical analysis and market results have proved that minor changes in these figures will have a significant impact on consumers’ buying behavior. Therefore, modifying the bitcoin price display unit to make the display price drop significantly may have a great psychological impact on potential investors.

In addition, I wonder if you have noticed that many exchanges and market software are designed according to the stock trading system. By default, the price displayed in 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 cannot be divided. Therefore, it is likely that this inertial thinking will allow many people familiar with stocks to apply this thinking to bitcoin trading. It is 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 certainly deter many potential investors.

In fact, changing the display unit is not a rare behavior. In the traditional financial market, this behavior is also very common. In the stock market, it is usually manifested as “share splitting”. When the price of a stock rises continuously, 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 completely consistent with modifying the display unit.

Bobby Lee of BTCC platform has repeatedly proposed that the industry needs to change the common unit of bitcoin to mbtc( μ BTC (9 mbtc for us $9000), but it is not recognized by most people. Many people are not opposed to modifying common units, but have some different suggestions. Some people suggest using Satoshi directly for display, but there are still many people who propose using bits( μ BTC, 0.009 bits at $9000). Bobby Lee thinks that at that time, the price of bitcoin was already high, and changing it to mbtc could be accepted by more people. However, the proponent of bits thinks 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 no longer suitable. It is better to directly modify it to bits.

When writing, the author asked Li Lin, founder and chairman of Huo coin, a digital currency exchange. Li Lin said that he had no personal objection. “It mainly depends on market acceptance. If it is to be implemented, it may be done a user survey and voting 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 think the unit price of bitcoin is too high. Obviously, the price of bitcoin has been hovering at a low point for a long time, largely due to the lack of new investors. Unlike before the last bull market (such as around 2015), the current unit price of bitcoin must have scared many people away. The necessary condition for the bull market to open is that a large number of new investors need to be able to participate, and adjusting the bitcoin display unit is likely to become the key to open the bull market.

Responsible editor: CT

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