Source from pinterest
Today, I would like to discuss with you why is it important to denominate the trading pairs. If you have not read the previous episode, please proceed to the bottom of this post and find out the link. It's important for your to understand episode 2 before you proceed with the following information, or your brain will explode.
Concept of BUYING with denominator in FIAT world
We live in one country, we're bound to "think" of our own currency at one denomination. We just don't give a flying fish about how much it worth when the product we're buying are worth in other denomination currency, will you? You live in Canada, you earn Canadian dollar, you go to McDondal's and buy a BigMac meal, you paid with your Canadian Dollar, will you think of how much does it cost if you pay in USD? Probably not, unless you stay around that border line, working on another country, like you earn USD but you spend CAD. However, that does not change the perception of buying with denominator. Take the picture above for example, if you put the BigMac as numerator, and the amount of cash you spent is denominator, is it so hard to understand now? Which means, if you wanted to buy 1 BigMac meal, you will have to pay 4 dollars regardless. If you do not pay 4 dollars, you pay 2 dollar, you only get half a meal. If you only pay 1 dollar, you will only get a quarter meal. We're just so programmed by the education system, by the society we live in, where everything has a 1unit as a numerator, but we uses the denominator(fiat currency) to buy. It's time to break that conventional thinking. We do not limit to a physical product that has a 1 unit price tag anymore!
Screw the conventional thinking, time to unleash the numerator
It the modern era, you don't need to understand the concept anymore. You will just need to remember one thing, when there's nothing to referred to, refer to the denominator. And the denominator does not need to be on the left or on the right, make sure it's at the bottom. Once again, we need to look at our #hive wallet.
It's always BUY HIVE or SELL HIVE in the context. If you put the HIVE into the denominator, and HBD into the numerator, automatically you will be able to see the idea of where the digits came from.
Reveal spoiler
Price feed brought to you by @coingecko
Looking at the above mind fuck chart, if you have 1 of HBD, how much HIVE can you buy? In this case 0.920631 / 0.188539 = 4.882973HIVE you're getting back. If you have 5HBD? Which means 5*0.920631/0.188539 = 24.414869HIVE.
Summary
So far, we have been covering numerator and denominator for 3 episode already. I am trying to share with you how to break yourself free from the conventional fiat way of spending, which is the price tag. In crypto world, both consumer are seller has a price tag by themselve, do not ever stuck with the 1 unit price tag. Read the trade board, put in your denominator, and start to earn by VOLUME. How many BTC do you want? If you tell me $100 worth of BTC, fine I will get to the exchange, throw in 100 bucks and you get your 0.005BTC. But if you tell me, your denominator is BTC and you require 0.005unit, then I will have to pay regardless of spending 150 bucks or 200 bucks. If you still have question about it, kindly leave me a message at the comment section so I know what do explain on the next episode. I do not wanna go to the moon all by myself. I wish to bring as many people as possible.
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