Bitcoin: the new gold standard? Part Two
1 Bitcoin can be broken down to eight decimal places: 0.00000001. This is called a Satoshi, and it is thus 100,000,000 Satoshi in one Bitcoin. As concerns the future – if the there is a need for even more decimal places, then this is something that can be encoded into the protocol. Gold is not divisible by definition.
Gold or regular cash is easy to make transactions with face to face, however when you need to have a transaction between two individuals who are not in the same geographical location, you have to make yourself dependent on a third party to carry out such a transaction ( remember about banks, Visa, MasterCard or PayPal for cash or its equivalent for gold).
With Bitcoin you can perform a transaction with anyone, instantly, at no cost and without making you dependent on a third party.
Caesars comes with a little eye-opener of an example that considers how far technology has come and in the same time he shows we already have reliable mechanism for sending small amounts of money ( e.g. one penny ) over the Internet.
No services allow you to do this without having to pay high fees and percentages on such a small transaction. It will also not perceived as an immediate transfer – modern banking system is not prepared for it. Bitcoin makes it simple and elegant; you can send one cent or 100 million euros, immediately and free, without the intervention of any third party.
Check out the full lecture of Casares: