What Is A Satoshi?



Nov 23, 20222 min read

What Is A Satoshi?

A single bitcoin, like a dollar, is divisible, and the smallest unit is known as a satoshi. One bitcoin contains 100 million satoshis (sats), which means that each satoshi is worth 0.00000001 BTC. 1 BTC must be worth $1 million in order for one satoshi to be worth one cent.

The satoshi is not bitcoin's sole subdivision. A millibitcoin is one thousandth of a bitcoin (0.001 BTC). A microbitcoin, or 0.000001 BTC, is one millionth of a bitcoin. It is possible to transact on the Lightning network using a unit even smaller than the satoshi. The millisatoshi is one-thousandth the size of a single satoshi, but it is not usable on the bitcoin network itself.

When dealing with little amounts of bitcoin, using words like satoshis or other small units saves users from having to write down strings of zeros.

Bitcoins must be divided into fractions to permit microtransactions such as purchasing a cup of coffee, but the asset is not recognized as an acceptable means of exchange due to its significant volatility. Satoshis have become indispensable since a single bitcoin reached tens of thousands of dollars in value. It also means that prospective investors can buy as little as $1 worth of BTC rather than a full bitcoin.

Because bitcoin's block rewards usually half every four years, the new tokens created every 10 minutes will eventually be tallied in satoshis rather than bitcoin. Because satoshis exist, fresh bitcoin will have to be stopped sometime in the next century. It will not be able to continue minting fresh bitcoin in decreasing numbers indefinitely.

Satoshi Nakamoto, the pseudonymous founder of bitcoin, is commemorated with the satoshi. He, she, or they have not performed under that identity since 2010 and have given little hints as to who they are.

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