An egg reveals what the Arc20 protocol in the Bitcoin ecosystem is
1. What is a sats?
Satoshi is the smallest unit of BTC, 1BTC = 100 million sats.
2. What is the Arc20 token?
Arc20 is a colored coin protocol in the Bitcoin ecosystem. The protocol stipulates that for every Arc20 token issued, a [bitcoin worth 1 sats] will be bound to it.
Analogy: You can think of this [BTC worth 1 sats] as "tissue paper", and minting Arc20 tokens is equivalent to printing "100 USD" on the tissue paper. Even if everyone does not recognize this "100 USD", at least you can use this paper to exchange for a [BTC worth 1 sats].
Therefore, as long as you have 100 million Arc20 tokens, you can recharge it to the BTC address of the exchange to exchange for 1BTC. Because the Arc20 protocol stipulates: 1 coin 1 sats, 100 million sats = 1 BTC.
3. Sat is an egg, sats is eggs.
If a BTC worth 1 Sat is compared to an egg, then 1 Arc20 token is a pickled preserved egg. The physical value is one egg, and the economic value of a preserved egg can be exchanged for many eggs.
Some people must think that: at the chemical level, a preserved egg cannot be turned back into a preserved egg, just like a boiled egg cannot be beaten into egg liquid.
The example of eggs emphasizes the difference in economic value. To turn a boiled egg into a raw egg, you only need to recharge it to the BTC address of the exchange.
4. Value conversion
Assuming that the Arc20 token $Quark is currently worth 2 Sat, after buying $100, the price is halved and the unit price is 1 Sat, which is equivalent to buying 50U of BTC. When the BTC price doubles, the fiat currency is worth $100, and the return rate is not capped.
This is a coin that never returns to zero. On the one hand, the maximum loss is 50%, and on the other hand, the return rate is not capped.
The current price of Quark is 1.58 satoshis. Buying now will result in a maximum loss of 36%. It should not be difficult for the BTC price to rise to cover this 36%.
Quark, which currently costs 1.58 satoshis per piece, costs 20,000 coins per piece and costs 19u. You should know that the mint cost was 30-40u at the beginning.
It is equivalent to using extremely low risk to gain a thousand times return.