User:Rook944/sandbox

Bitnote
Demographics
Date of introduction	March 4, 2014; 11 years ago
User(s)	Worldwide

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Cat:IB currency unk param:website

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"Bitnote" is a presentation layer designed to allow common items to be priced in whole numbers instead of Bitcoin’s many leading 0’s and decimals. Bitnote works by multiplying Bitcoin denominations by a conceptually logical factor of 1024 while keeping the same value. This has the effect of making the bit-currency price far more legible for merchants and consumers to transact.

History

Bitcoin, originally introduced in 2009, have fluctuated in price between pennies to over $1,000. As prices of Bitcoin have increased, the sensibility of pricing common items in Bitcoin decreases. At the current value any common pricing in Bitcoin leads to many 0’s and decimal places. For example, with Bitcoin trading at $588.50, a coffee at $1.85 would be 0.003144 Bitcoin.

Rationale

Pricing common items leads to prices that are difficult to read for the purchaser. Bitnote attempts to solve this problem by converting decimal based Bitcoin prices into whole numbers that are far easier for the seller and buyer to communicate. Bitnote multiplies Bitcoin prices by 1024 to achieve whole numbers. A coffee at $1.85 would become 3.22 Bitnotes instead of 0.003144 Bitcoins. Greater ability to communicated prices allows for greater adoption of Bit-currency worldwide. Bitcoins were designed with 8 decimal places, like a byte from computer logic. The creators of Bitnote extended this logic to with the understanding that a kilobyte has 1,024 bytes, allowing one Bitcoin to equal 1024 Bitnotes—and achieving whole numbers. Even if the price of Bitcoin increases by 10 times, the Bitcoin price of most common items will continue to be expressed using whole numbers.

Common Uses

Item	USD Dollar Price	Bitcoin Price	Bitnote Price
Gas	3.50	0.005978	6.12
Google Chromecast	35	0.059778	61.21
Sneaker	125	0.213493	218.62
Movie Ticket	12	0.020495	20.99
Paper Notebook	15.95	0.027242	27.90
iPod Touch	229.00	0.391119	400.51
Monthly Netflix subscription	7.99	0.013646	13.97
Keurig K-Cup Brewer	119.99	0.204936	209.85

All prices use a sample conversion rate of $585.50/Bitcoin

Origin

Joey Cofone and Adam Kornfield were working on launching the webstore for Baron Fig in early 2014. Looking at payment processing fees, Bitcoin was far lower than traditional credit card payment methods. However, pricing the product in Bitcoin would yield a difficult to read decimal amount. They wondered to make a more friendly price to read and developed the Bitnote.