Satoshi
The smallest unit of Bitcoin, equivalent to 0.00000001 BTC.
What Is Satoshi?
A satoshi is the smallest unit of Bitcoin (BTC), named after its creator, Satoshi Nakamoto. One Bitcoin is divisible into 100 million satoshis, meaning 1 satoshi equals 0.00000001 BTC.
How It Works
- Fractional Bitcoin: Just as dollars can be broken into cents, Bitcoin can be divided into satoshis. This makes Bitcoin accessible for transactions of all sizes, even when the value of one full Bitcoin is very high.
- Use Case: Satoshis are useful for microtransactions, especially when the price of Bitcoin rises significantly, allowing for small purchases or investments without needing to own a full Bitcoin.
Example
If Bitcoin is valued at $50,000, 1 satoshi would be worth just $0.0005. This allows people to trade or use Bitcoin even in very small amounts, making it flexible for various types of transactions.
The Sum Up
In short, satoshis are the tiny building blocks of Bitcoin, enabling everyone to participate in the Bitcoin ecosystem, even without owning an entire Bitcoin.