Btc decimals

So, network effects aside, they are interchangeable for a given user. Numbers, psychology and value all interact inside our minds. Research on pricing psychology suggests that numbers and their arrangement around the decimal place influence perceived value. As the eyes move left to right, digits to the left of the decimal place are most significant for us.

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We have learnt to see these numbers as important. We have learnt to overlook anything laying to the right. As Bitcoin increases in value, wealth representation necessarily moves to the right. Our perception of a given thing creates a price point: the point at which demand changes. Perhaps then, a user will irrationally tend towards participation in a network that denominates their worth with a bigger number.

A user may tend towards the use of Litecoins, for example, out of a desire to own whole units. This would give the user a larger nominal representation of wealth, fewer zeros to the left and a greater psychological satisfaction.

Scientist and researcher Stanislas Dehaene notes that prices with precise numbers tend to make consumers uneasy. Prices are rounded to calm consumers and increase perceived value.

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Dehaene also notes that Rounded numbers convey value. A Bitcoin is only a mathematical construct.

So as a representation of value it is incredibly precise. Allowing for protocol changes it has the potential to be even more precise. Bitcoins are anything but rounded. For the inexperienced this precision must be intimidating. Unless you hold the opinion that Bitcoin, purely disruptive, will sell itself, then it still faces significant challenges: its continued adoption not yet assured. People who have never given much thought to money, value transfer or distributed consensus are unlikely to immediately realise the implications of Bitcoin.

Already software is aiming to work around such issues. Spending energy to secure and operate a payment system is hardly a waste.

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Like any other payment service, the use of Bitcoin entails processing costs. Services necessary for the operation of currently widespread monetary systems, such as banks, credit cards, and armored vehicles, also use a lot of energy. Although unlike Bitcoin, their total energy consumption is not transparent and cannot be as easily measured. Bitcoin mining has been designed to become more optimized over time with specialized hardware consuming less energy, and the operating costs of mining should continue to be proportional to demand. When Bitcoin mining becomes too competitive and less profitable, some miners choose to stop their activities.

Furthermore, all energy expended mining is eventually transformed into heat, and the most profitable miners will be those who have put this heat to good use. An optimally efficient mining network is one that isn't actually consuming any extra energy. While this is an ideal, the economics of mining are such that miners individually strive toward it. Mining creates the equivalent of a competitive lottery that makes it very difficult for anyone to consecutively add new blocks of transactions into the block chain.

This protects the neutrality of the network by preventing any individual from gaining the power to block certain transactions. This also prevents any individual from replacing parts of the block chain to roll back their own spends, which could be used to defraud other users. Mining makes it exponentially more difficult to reverse a past transaction by requiring the rewriting of all blocks following this transaction. In the early days of Bitcoin, anyone could find a new block using their computer's CPU.

As more and more people started mining, the difficulty of finding new blocks increased greatly to the point where the only cost-effective method of mining today is using specialized hardware.

Divisibility -- 8 decimals (0.00000001 BTC)

You can visit BitcoinMining. The Bitcoin technology - the protocol and the cryptography - has a strong security track record, and the Bitcoin network is probably the biggest distributed computing project in the world. Bitcoin's most common vulnerability is in user error. Bitcoin wallet files that store the necessary private keys can be accidentally deleted, lost or stolen.

Crypto/Bitcoin number format - 8 decimal places - Idea - Bubble Forum

This is pretty similar to physical cash stored in a digital form. Fortunately, users can employ sound security practices to protect their money or use service providers that offer good levels of security and insurance against theft or loss. The rules of the protocol and the cryptography used for Bitcoin are still working years after its inception, which is a good indication that the concept is well designed. However, security flaws have been found and fixed over time in various software implementations.

Like any other form of software, the security of Bitcoin software depends on the speed with which problems are found and fixed. The more such issues are discovered, the more Bitcoin is gaining maturity. There are often misconceptions about thefts and security breaches that happened on diverse exchanges and businesses. Although these events are unfortunate, none of them involve Bitcoin itself being hacked, nor imply inherent flaws in Bitcoin; just like a bank robbery doesn't mean that the dollar is compromised.

However, it is accurate to say that a complete set of good practices and intuitive security solutions is needed to give users better protection of their money, and to reduce the general risk of theft and loss. Over the course of the last few years, such security features have quickly developed, such as wallet encryption, offline wallets, hardware wallets, and multi-signature transactions. It is not possible to change the Bitcoin protocol that easily.

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Any Bitcoin client that doesn't comply with the same rules cannot enforce their own rules on other users. As per the current specification, double spending is not possible on the same block chain, and neither is spending bitcoins without a valid signature. Therefore, it is not possible to generate uncontrolled amounts of bitcoins out of thin air, spend other users' funds, corrupt the network, or anything similar.

The Psychology of Decimals

However, powerful miners could arbitrarily choose to block or reverse recent transactions. A majority of users can also put pressure for some changes to be adopted. Because Bitcoin only works correctly with a complete consensus between all users, changing the protocol can be very difficult and requires an overwhelming majority of users to adopt the changes in such a way that remaining users have nearly no choice but to follow. As a general rule, it is hard to imagine why any Bitcoin user would choose to adopt any change that could compromise their own money.

Yes, most systems relying on cryptography in general are, including traditional banking systems. However, quantum computers don't yet exist and probably won't for a while. In the event that quantum computing could be an imminent threat to Bitcoin, the protocol could be upgraded to use post-quantum algorithms. Given the importance that this update would have, it can be safely expected that it would be highly reviewed by developers and adopted by all Bitcoin users.

You can find more information and help on the resources and community pages or on the Wiki FAQ. Make a donation. Frequently Asked Questions Find answers to recurring questions and myths about Bitcoin. View All General What is Bitcoin? Who created Bitcoin? Who controls the Bitcoin network? How does Bitcoin work? Is Bitcoin really used by people? How does one acquire bitcoins? How difficult is it to make a Bitcoin payment?