Main navigation

Mike Novogratz Urges Exchanges to Switch to Sats as Bitcoin Becomes “Too Expensive”

News
Sun, 05/09/2021 - 07:14
article image
Alex Dovbnya
Mike Novogratz wants major exchanges to replace Bitcoin with sats
Mike Novogratz Urges Exchanges to Switch to Sats as Bitcoin Becomes “Too Expensive”
Cover image via en.wikipedia.org
Read U.TODAY on
Google News

In a recent tweet, Galaxy Digital CEO Mike Novogratz has made a case for exchanges replacing Bitcoin with the satoshi, the smallest unit of the largest cryptocurrency that equals 0.00000001 BTC. He explains that “too many people” find the whole thing “too expensive” at current prices.  

The billionaire calls on Coinbase, Binance, FTX, and Gemini to adopt the satoshi as the quote currency to make the largest crypto more attractive for the average Joe.

Named after Bitcoin’s eponymous creator Satoshi Nakamoto, the unit was originally proposed by BitcoinTalk user Ribuck back in November 2010. It eventually gained currency within the community.  

Leading cryptocurrency tracking site CoinMarketCap added SATS to the list of coins earlier this week, possibly making the unit more mainstream. At press time, one satoshi is trading at $0.0005.  

CMC
Image by coinmarketcap.com

Mike Bucella, general partner at BlockTower, claims that exchanges adopting the smaller unit would be “the psychological stock split” that would encourage more people to get involved.   

According to billionaire Mark Cuban, the excitement that comes with owning the whole thing might explain the rise of meme cryptocurrency Dogecoin:      

It’s hard for someone with $100 to get excited about owning a fraction of BTC or ETH. It’s easy with doge.  

Related
Satoshi Confirmed His Departure from Bitcoin Community 10 Years Ago

The discoverability problem  

As enticing as it might sound, switching to sats is not an easy task for exchanges. Kraken CEO Jesse Powell explains such factors as user experience and discoverability have to be taken into account:

Have to think through the UX, discoverability. 99% of new users coming in will be looking for bitcoin/BTC and have no idea what a satoshi/sat is. Don’t want to confuse them.

Square’s Cash App added sats back in December, but not a single major exchange has made such a move yet.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.