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Question: Can zeros be added to Bitcoin, increasing the number of sathoshis from 100m to more than 100M? It is alleged on twitter that zeros can be added and that it is already so on LN. If so, why wouldn't this be increasing the supply of BTC? Even if it is still 21m BTC, it would be more satoshis, which I understand is the base unit anyway.

This is where it was alleged on Twitter: twitter.com/hodlonaut/status/1
I would argue adding zeros is inflation...

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@KingWm
No. But I do think that Lightning ought to take the satoshi out to 8 decimal places. It's currently at 3 decimal places from what i understand.

@KingWm I think the point is your adding 0s after a decimal. Not going from 10 to 100 but from 10 divided into .1 chunks into 10 divided by .01 chunks. You still have a 21 million coin limit you just would have a new unit at 1/10 of a satoshi

@KingWm Adding units is inflationary, yes. Don't see that happening at all.

@KingWm Lightning btc adds 3 decimal places, not more zeros.

@KingWm if lightning is based on a finite supply of 21 million btc on the best day and 14 million or so according to people who speculate on tje amount of lost coins i dont see how thats math possible. Splitting 21 million bitcoin into micro fractions of a satoshi wirh lightning doesnt create more btc. It just makes existing btc divisible in smaller portions

@KingWm LN is just working with fractions. There's no impact on inflation.

Bitcoin would likely already be infinitely subdiviable, except for a number of small issues:

The more you subdivide each satoshi, the larger the tx becomes, the more that tx costs. You end up paying more to send less.

This would create dust UTXOs with an even lower incentive to consolidate. This means full nodes need better hardware to store worthless dust transactions for the rest of time.

@KingWm This whole confusion arose because some people talked about the internal variables in Lightning containing sub-satoshi values for calcs. For the main chain to do anything like this, it would require everyone to agree, which I think is highly unlikely. Lightning tx's resolve on the chain, so any talk of sub-satoshi crap is just so much noise.

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