Bytecoin versus Monero: “Ease of Use”


Bytecoin - Copy


Ease of use.

One of the aspects of cryptocurrencies which seems to confuse a lot of people is the idea of “atomic units.” The separate parts of the coins, so to speak. Debates rage across the Crypto-sphere.

In other words, just how many actual individual units of a particular cryptocurrency are there and how can this change the value or the perceived rarity of a coin? And does it really matter?

We’ve all read about Bitcoin. At least those of us who find Fintech interesting. No more than — approximately — 21 millions Bitcoins will ever exist.  But the number of actual individual “atomic” units is different.

Bytecoin and Bitcoin used the same definition of what one “coin” should be: 10^8. In actuality, however, Bytecoin has 10^64 atomic units, which is the same as Monero. That is the money supply. The “M1” if you will. Monero simply decided to move the decimal to the left.

All of this is not to stir debate as much as it is to appeal to the human in us. What would you rather have? Whole numbers or fractions of numbers when spending your funds? When investing? More numbers seems better, sure. But fractions of numbers?

As Monero increases in value, each atomic unit becomes more valuable. This is the same with Bytecoin or any cryptocurrency.  The only difference are “whole” numbers. So ask yourself these questions, as a user of cryptocurrency:

What is easier to calculate and understand quickly?

Whole numbers or fractions of numbers?

This can be looked at another way.

If each Monero is the equivalent of $50 and you want to buy a soda, how much would it cost? Say the soda is one U.S. dollar. That would mean 1/50th of a Monero or about .02 (point 02) XMR’s gets you that drink — alcohol is extra. Say a dash of vodka costs .1 (point 1) XMR’s. (I know — cheap vodka.) So .12 (point one two) is your total cost. Well, then there are taxes and other fees. Let’s say your total bill is .1290 with a 7% sales tax and other fees. There, we’re done now. Hand over your fraction.

Bitcoin calculations are similar, but their fees seem higher.

Now let’s try Bytecoin. At about 1/3rd of a cent each, you would need about 300 Bytecoins to buy a one dollar soda and at least 1500 more to add some cheap booze. If Bytecoin continues to increase in value, these numbers will fall. For example, if Bytecoin increases in value to the equivalent of one U.S. penny or .01 cent (one cent), your one dollar soda is now 100 BCN. With vodka? Say 600 BCN. With taxes and fees? Say 650 BCN.

It would  be easy if you were Japanese since one hundred yen is roughly one U.S. dollar. They would “get it.” For those of us in the U.S., it would be nice if BCN could value to about one dollar. In that case, we would “get it.” One BCN for one soda.

My point? What is easier to understand? Fractions or whole numbers? It’s your choice, but do not fool yourself into thinking you are actually spending less money. It’s all relative. Emotionally, we might feel better when we keep to the low numbers, to fractions, but in reality, we are spending the same amount of money.

There is another supply difference as well — between Monero and Bytecoin.  Bytecoin’s money stock recently increased do to a flaw. It added an additional 693 million coins, before the flaw was fixed.

Perhaps Bytecoin learned from Ethereum’s mistakes. They chose to keep the original blockchain intact when faced with a problem. If you recall, after Ethereum corrected their issue, purists then launched a clone: “Ethereum Classic. ” The community then split.

 

 

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