  Optical satellite links open up new prospects for realizing quantum physical
experiments over unprecedented length scales. We analyze and affirm the
feasibility of detecting quantum squeezing in an optical mode with homodyne
detection of only one bit resolution, as is found in satellites already in
orbit. We show experimentally that, in combination with a coherent
displacement, a binary homodyne detector can still detect quantum squeezing
efficiently even under high loss. The sample overhead in comparison to
non-discretized homodyne detection is merely a factor of 3.3.
