You’ve likely heard the phrase “x amount of satoshis” before. If you’re looking for a clear guide on what that means and how to work it out, you’ve landed in the right place. We’re taking a look into the world of satoshis and Bitcoin, and will have you a little more clued up by the end.
What Are Satoshis?
Satoshis are the smallest denomination of Bitcoin. As the Dollar and Euro can be broken down into cents, so too can Bitcoin. Only the decimal places far exceed that of the fiat currencies. Bitcoin can be broken down into 100 million places, that’s a total of 8 decimal places, with the smallest fragment called a satoshi. One satoshi equates to 0.00000001 BTC, with other denominations along the way. See below for a full breakdown of how many Satoshis in a Bitcoin, and all the units along the way:
0.00000001 BTC = 1 Satoshi
0.00000010 BTC = 10 Satoshi
0.00000100 BTC = 100 Satoshi Also referred to as a Microbit or µBTC (uBTC)
0.00001000 BTC = 1,000 Satoshi
0.00010000 BTC = 10,000 Satoshi
0.00100000 BTC = 100,000 Satoshi Also referred to as a Millibit or mBTC
0.01000000 BTC = 1,000,000 Satoshi Also referred to as a Centibit or cBTC
0.10000000 BTC = 10,000,000 Satoshi Also referred to as a Decibit or dBTC
1.00000000 BTC = 100,000,000 Satoshi
As you might have imagined, the satoshi is named after the mysterious creator of Bitcoin, Satoshi Nakamoto. While his identity is yet to be discovered, if it ever will be, his legacy lives on with the incredible revolution that is Bitcoin.
Why Do We Need Satoshis?
Bitcoin was designed to be a peer to peer payment system as outlined in the Bitcoin whitepaper. Satoshis were created to facilitate smaller payments, also known as micropayments. Enabling smaller transactions caters to a wide growth in price, without exempting anyone from using the payment system.
In other words, just because a person cannot afford a whole Bitcoin doesn’t mean that they cannot participate in peer to peer payments on the network. Parallel to the concept that just because a person does not have access to a bank does not exempt them from using digital money. Bitcoin is for all, the banked and the unbanked.
Using the term satoshis, or sats, is an easier way to measure something, whether you’re buying a coffee or counting your savings. For example, if buying a coffee for $5, instead of saying 0.00011000 BTC, using the term 11,000 sats is much easier to both communicate and comprehend. The belief in the industry is that in the near future sats will become an universal payment method.
The Search For A Satoshi Symbol
While Bitcoin has been given the symbol ฿, Satoshis are yet to get a symbol of their own. ฿ was first used by Satoshi Nakamoto himself in the early days of Bitcoin and has seen widespread adoption, so much so that Apple included the symbol to their iOS12 keyboard.
Now the community is working on establishing a symbol for the smallest denomination. While the discussions have been going for a while, there is yet to be a conclusion. As the Bitcoin price rises it is likely that the discussion will be fuelled with a little more urgency in the upcoming years. Below are some of the proposed symbols for the satoshi:
How To Work Out How Many Satoshis
If you’re looking to establish how many satoshis you might need, you can use this satoshi calculator that indicates how much Bitcoin that equates to and the US dollar value.
If you’re in the business of stacking sats (accumulating satoshis) or want to be, we’ve got you covered. Get started with as little as $20 and easily buy Bitcoin and other cryptocurrencies using a wide range of payment options, including bank transfer, credit or debit card.