Well, Bitcoin has never been cheap for years. It was “expensive” selling at $10 for each bitcoin in 2010. Then in 2013, it was “expensive” at $1000, and now it’s “expensive” at “$6494” (price at the time of writing).
Is Bitcoin really too expensive to buy? Think again.
Many people don’t realize that they don’t have to buy a whole Bitcoin.
It’s not the case like you’re going to a store and buy an iPhone for $699. You either buy the set of iPhone or you don’t buy one at all.
Whether you’re living paycheck to paycheck or running a successful small business, probably you won’t feel comfortable to take out a huge bite of your savings and buy 1 Bitcoin.
The good news is you don’t have to do that if it’s not within your financial plan.
Instead, you can start buying a tiny fraction of bitcoin in the form of Satoshi.
Similar to many national fiat currencies, for instance, USD, we have a small monetary unit called “cent”, which is 1/100 of a dollar. And the pound is broken into pence.
In the world of Bitcoin, we have this small unit called Satoshi.
In this post, you’ll learn everything there is to know about Satoshi, its origin, and Satoshi converter that will come in very handy.
What is a Satoshi?
The Satoshi is the smallest unit of Bitcoin recorded on the blockchain.
Each bitcoin (BTC) is divisible to 8th decimal place. And a unit of satoshi is equal to 0.00000001bitcoin.
Satoshi is widely used on cryptocurrency exchange sites for buying and selling other crypto coins such as litecoin, ether and more!
Many faucet websites also give away free bitcoin to its users in satoshi unit.
It all began in 2008 with the publication of a 9-page paper by an anonymous contributor on the Internet who used the name “Satoshi Nakamoto”.
Today, his/her identity remains unknown. Nobody really knows.
What every geek knows is that the Bitcoin white paper is providing a solution to a long-standing problem of computer science known as Byzantine General’s Problem. You can read the full copy, Bitcoin: A Peer-to-Peer Electronic Cash System here.
And thus, this satoshi unit is named after the Bitcoin’s mysterious creator, Satoshi Nakamoto.
Important Bitcoin Denominations
The Satoshi represents one hundred millionth of a single Bitcoin. Other than the two main official units namely Bitcoin and Satoshi, there are few commonly used units such are millibitcoins (mBTC) and microbitcoins (μBTC).
- 1 BTC=1,000 mBTC (milibitcoin)
- 1 BTC=1,000,000 μBTC (microbitcoin)
- 1 BTC=100,000,000 satoshis
Having these small denominations will make bitcoin transactions easier to conduct, making it much easier to read extremely fine transaction.
By design, Bitcoin has a limited supply of 21 million bitcoins that will ever be created. The last bitcoin is expected to be mined sometime in the year 2140.
As time goes by, the price of bitcoin will continue to rise. Having said that, by breaking down this digital currency into smaller units will make it more usable in a day-to-day transaction.
In one of the early announcements sent by Nakamoto, he once said, “With 20 million coins, that gives each coin a value of about $10 million.”
According to Nakamoto, if Bitcoin is successful, each bitcoin will be worth about $10million, that means 1 satoshi = $0.10.
That’s to give you an idea of how it works if bitcoin keeps rising in price to tens of thousands and beyond.
How to Convert Satoshi to Bitcoin
Now let’s get to the topic and see how to convert satoshi to bitcoin fast and accurately.
At first glance, it might seem like an easy mathematics calculation where you just need to move the decimal point in the correct direction based on the above-mentioned conversion system.
However, extreme care has to be taken when you do the conversion. One small mistake made on the decimal place will cause unnecessary loss of Satoshi. This is because bitcoin transactions, both sending or receiving, are all irreversible.
I used to do the calculation manually until I found this helpful tool where it will show me the exact value at the click of a button.
You can also use it to convert bitcoin into many other digital and fiat currencies all in one single search. The best part is it’s free to use!
As Bitcoin is a highly volatile currency, any news or a minor change will have a huge impact on its price. And the conversion rate is varied slightly on different exchange sites.
To calculate based on the most recent rate, I recommend using this converter. It provides the real-time updates accordingly. You can use it convert satoshis into USD and other fiat money like EUR, GBP, CNY, RUB, or CAD.
With the help of this simple converter, you can quickly determine how much amount you need to send or receive.
Enter the amount you want to convert into the box, use it to convert Satoshi to USD or USD to Satoshi and BTC instantly. Remember to click refresh to get the most updated calculation!
Do you have any other questions? Feel free to leave a comment below.
And lastly, if you liked this post, don’t forget to Pin this!
I’ve handpicked a few guides for you to read next:
- What is Bitcoin and why all the fuss with Cryptocurrency?
- 8 Legit Ways to Earn Free Bitcoin (#3 is My Favorite)
- How to earn Bitcoin in less than 1 minute
- 7 Best Free Bitcoin Faucet Websites to Earn Free Bitcoin Daily
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