What is smaller than a satoshi? BTC dominance drops 231121

in #markets9 days ago (edited)

Last night Bitcoin dipped under 57k although at the moment it is 57,257 USD
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I try to watch the price daily and make notes about the changes I notice over time. So today is it a surprise to see this? Alt-season is not over yet. Bitcoin has fallen to 39.65% of 2.7 Trillion.

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Do you remember when Bitcoin had a market cap under 200b? I remember, it was not that long ago.

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I have been exploring, asking questions, making notes about what I find interesting. Some very interesting developments have taken place with the technology, its uses cases, and creative solutions to important problems. When people ask me about Bitcoin I usually try to explain it as a philosophy, about sovereignty, about freedom, about decentralization. I describe it as the napster of money, a protocol for transferring value across the internet in a trustless way.

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What interests me about the market dominance of BTC is that in my opinion, price is irrelevant because one day, supply will be all that matters. While there has been some discussion about whether BTC will be replaced one day by an altcoin, so far none have been able to do so.

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As to whether or not there is an AI living inside Bitcoin, Ethereum is essentially the realization of Artificial Intelligence as it is a Turing complete computer that runs on ETH. However there are also ERC-20 coins that are using machine learning algorithms, like The Graph to boost dapp indexing in a decentralized way. Other projects like Brave's BAT token want to change the web advertising model, and the search engine Presearch is rebuilding the way we search and market keywords. When even more complex AI is able to process all of the data on all these chains and make realtime decisions, whole new prediction markets may emerge and they will have to be run by Virtual Agent Contracts.

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The hope that we have is for smart contracts and internet money to jam open the doors of innovation and cut out the red tape and human bias which corrupts the creative process. Code is art. We can create some thing beautiful, or we can build something terrible. 2021 has seen some big innovations but it has also seen a whole lot of mud. Meme coins and rug pulls have been dominating the Crypto narratives as more people seek to find their own niche, in the form of their favorite hyper deflationary meme bonfire. Although I am highly skeptical, this is what experimentation and discovery is all about, taking risks and attempting new things even if they might fail. I advise that anyone experimenting should only do so with what they can afford to lose. In a moment one wrong keystroke can expose your wallet to malicious contracts, transfer to the wrong wallet, or burn funds that can never be recovered. Let us not forget lost wallets, only the supply of Bitcoin is what matters.

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According to various stock to flow models, like the one I have here from woobull, we are not yet at the top of this cycle. I don't have the answers but I have lots of questions. When the price of BTC rises to 200k will users flip their altcoins back? Will the dominance of BTC also rise, or will competing altcoins try to push BTC out? Which altcoins will also rise when BTC is roaring to new heights? Coins with relevance and true value? Coins with communities who use the token?

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A new ATH will have to happen soon because there are still 895 days until the next halving on 07 May 2024, and normally the price rises again sometime after that. Although no one has all the answers we can share our perspectives which can help us to gain a clearer vision of what is unfolding. I suggest everyone do your own research. This is just what I see and I want to find out.

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BTC already tested a low of $28,600 this summer but if 2022s low is as low as $12k that does not preclude BTC reaching 200k+ in 23' based on past moves. Even if it only drops to 32k again, BTC may still have higher ATHs in its future. Some might suggest that their version of moon-doge-butt-swap will replace BTC one day, but price and market cap are not the only metrics that matter. Growing adoption worldwide and demand for altcoins alone put pressure on the price, but add to that goods and services in countries that are adopting crypto for commercial transactions need access to Bitcoin liquidity. Square for example bought 3,318 BTC in 2020 for $170m, now worth $191m. Many companies are seeing the advantages (and disadvantages) of holding Bitcoin.

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I have previously referenced discussions that reveal one major obstacle to mainstream commercial adoption of Bitcoin is that there is not enough liquidity. So perhaps smart contracts that have quadrillions of tokens may in fact find their place servicing the commercial transaction markets. I have previously imagined that in the future our "credits" might be some division of a satoshi. I think it is fair to say that we have reached that point already, when you can buy 330,797,221 BabyDoge for a $1 because it is worth a sub-satoshi number.

As a wise man once said, altcoins only exist to steal your Bitcoin.

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A Satoshi is one hundred millionth of a single bitcoin (0.00000001 BTC).

0.0000,0000,0000,0414,55655 <-- What is this number? How do we define these sub-satoshi numbers? I have to assume working down from the satoshi (8th decimal place) tenth hundredth thousandth ten-thousandth, hundred-thousandth, 1 millionth ? So 4.1 millionth of a satoshi?

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If anyone can enlighten me on what we could do to classify these- that would be great. I guess all of this is to say, buy some Bitcoin. We might get one or two more big chances to buy before most everyone gets priced out, but any coins under 100k is a bargain from my point of view. Meme coins can be fun but only fun like losing money at a slot machine. Although these coins might seem inherently worthless we also should accept the idea that they do have some value, however little there might be. If meme coins become channels for the masses to spend, they might just win out.

BTC has risen $491 to 57,748 since I started writing this story. Bitcoin dominance is slowly climbing, back up to 39.68%. Keep stacking your Satoshis and keep them off centralized exchanges.