How To Stop Thinking In USD, And Start Thinking In Satoshi Or Ether


I’ve commented a few places now about people referring to buying in or hoping for TRX to hit certain amounts in USD, often in terms of cents. For instance, ‘I bought in this morning at .04’ or ‘Do you think we’ll get to 10 cents by the end of the year?’.

I’m looking to explain why it doesn’t make sense to measure your TRX gains (or losses) in terms of cents. The simple answer is that you can’t buy or sell TRX for fiat currency. You didn’t buy TRX at 4 cents, you bought it for a specific amount in satoshi or gwei(?). I’m going to focus on BTC/satoshi here, but it’s essentially the same thing for ETH/gwei(?).

A satoshi is one hundred millionth of a single bitcoin (0.00000001 BTC), so in terms of TRX it’s currently valued in the 250-300 satoshi range. You can think of a satoshi to a bitcoin like a penny is to a dollar. With that being said, the relative price of TRX in USD can change, even if the satoshi price remains constant due to changes in the USD value of bitcoin.

Let’s say you bought in a few days ago and the price was 215 satoshi (.00000215), with bitcoin at a price of $19,000. At that moment in time, TRX was worth about 4.085 cents ($0.04085). Fast forward to today, and bitcoin has crashed to $13,000, but the price of TRX is 235 satoshi (.00000235). That would mean TRX was then worth about 3.055 cents, despite the fact that it was trading for 10% more than you bought it for. You freak out, thinking your holdings have dropped in value by 25% due to going from 4 cents to 3 cents, and panic sell…but in reality, you were actually up 10%. If you had panic sold, you would actually have more bitcoin than you had started with, even though it was worth less in fiat currency.

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So that’s also why it’s not a good idea to target specific fiat values as a measurement of success – if Bitcoin is worth $19,000, then for TRX to be worth 7 cents, it has to be trading at 369 satoshi. If bitcoin is worth $13,000, TRX has to be trading at 539 satoshi to be worth that same 7 cent amount. If you got in at 215 satoshi, that’s a difference of it going up in value 71% (369/215) vs 150% (539/215).

Hopefully this gives you a better understanding of why you need to change your mindset when measuring performance.
(by ckasek)