Crypto EDU

Satoshi

  • September 7, 2021
  • Expert
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Named after Satoshi Nakamoto, the person (or people) who invented Bitcoin, a satoshi is equal to 1/100 millionth of a Bitcoin. It’s the smallest fraction of a Bitcoin that can be recorded on a blockchain, after millibitcoins (1/1,000th of a Bitcoin) and microbitcoins (1/1,000,000th of a Bitcoin).

When Bitcoins were introduced in 2009, they weren’t worth much. (You’ve probably heard of Bitcoin Pizza Day, which marks the anniversary of computer programmer Laszlo Hanyecz paying 10,000 Bitcoin for two pizzas in 2010.) But now, with one Bitcoin going for tens of thousands of dollars, many transactions cannot be handled in whole numbers, nor can the associated fees. Satoshis also become more and more useful as the number of things you can buy with crypto increases. Plus, they help democratize the asset. No matter how high the value of Bitcoin goes, any retail investor, whether they have $5 or $500,000, can enter the market.

Why should you care about satoshis?

Smaller denominations of Bitcoin allow for smaller transactions, which is important as the usefulness of Bitcoin grows around the world. And it will get even more important as the price of Bitcoin rises. 

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