Inspired by Satoshi Nakamoto, the mysterious person who invented Bitcoin as the world’s first digital currency, a satoshi (sat) is the smallest unit of Bitcoin. One Bitcoin is divided into 100 million satoshis. In other words, one satoshi is equivalent to 0.00000001 BTC. Today, 1 Bitcoin is worth tens of thousands of US dollars, while a satoshi is worth less than a cent or fractions of a penny.
In the world of cryptocurrency, a satoshi offers a convenient way to transfer small amounts of coins. Therefore, satoshis are ideal for smaller transactions on the Bitcoin blockchain. Such Bitcoin transactions are also known as microtransactions. Satoshis are also suitable for everyday transactions, allowing users to express small amounts of BTC accurately without handling several decimal places. For example, daily users don’t need a whole Bitcoin to express the prices of goods and services.
Other denominations used to express the value of money in fractions of BTC without links to Bitcoin’s creator also exist. They include centi-bitcoin (cBTC), milli-bitcoin (mBTC), micro-bitcoin (μBTC), and deci-bitcoin (dBTC).
