Just what is Satoshi? Where does it come from and how much is it worth?
A Satoshi is a very small unit of Bitcoin!
Currently the smallest denomination of Bitcoin which you can have on the Blockchain is one Satoshi.
It is equal to one hundred-millionth of a Bitcoin, which can be written as 0.00000001BTC (that’s 7 zero’s after the decimal point!!), or 1×10-8BTC.
The name, Satoshi, was given to this unit in respect of the assumed creator of Bitcoin, Satoshi Nakamoto. Satoshi Nakamoto himself might be a he / she, or many people. Whoever they are, they have decided to retain anonymity for the time being and go by this name.
Why use such a small denomination?
When referring to or displaying a very small portion of Bitcoin, it is often difficult to read the full BTC value if it has a lot of zero’s in front of it. For example, 0.0000001BTC is difficult to read. It’s often just easier to display the same value in Satoshi (10 satoshi in this case).
For reference, the following values in Satoshi are written against their BTC equivalents:
1 Satoshi = 0.00000001BTC
10 Satoshi = 0.00000010BTC or 0.0000001BTC
100 Satoshi = 0.00000100BTC or 0.000001BTC
1,000 Satoshi = 0.00001000BTC or 0.00001BTC
1,000,000 Satoshi = 0.01000000BTC or 0.01BTC
10,000,000 Satoshi = 0.10000000BTC or 0.1BTC
100,000,000 Satoshi = 1.00000000BTC or 1BTC
In conclusion, to match with the top and bottom cases: 1 Satoshi equals one hundred-millionth of a Bitcoin, or 1 Bitcoin equals one hundred million Satoshi!
All this talk of small units of Bitcoin might have you thinking about how widespread Bitcoin actually is. If you want to learn more – read here to discover how many Bitcoin there are in circulation.
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