Eamong the different bitcoin units of measure, the Satoshi it is undoubtedly the most famous. A satoshi is the minimum unit of measurement that can be used in the Bitcoin system. It is the smallest fraction in which you can divide a Bitcoin.
In the same way that a euro is divisible into 100 cents, a bitcoin is divisible into 100,000,000 "cents" called satoshis. Allowing to reflect balances of up to eight decimal places. Therefore, the minimum fraction of a bitcoin would be 0,00000001.
This minimum unit is called satoshi, in honor to the creator of Bitcoin: Satoshi Nakamoto.
Equivalences between the units of measure satoshi and bitcoin
Now we know that a satoshi is the smallest unit of a bitcoin. But how small? Well here are some examples of equivalence:
1 satoshi = 0,00000001 bitcoins
1 bitcoin = 100,000,000 satoshis
Satoshi is to bitcoin what the penny is to the euro.
Obviously, when purchasing bitcoins it is not necessary to buy a complete unit, you can buy a certain fraction. This is where the different units of Bitcoin come in, including satoshi.
Today, due to bitcoin priceAcquiring an entire unit of this cryptocurrency in one purchase is not easy for most people on the planet. However, we can acquire a fraction and obtain the equivalent part thanks to the division capacity that each bitcoin has due to its technical configuration.
Conversion examples using the satoshi unit
Example 1: You can buy € 20 of bitcoins, which will correspond to the satoshis depending on the quote at that time in the Bitcoin / Euro market (1 Bitcoin = X euros).
Continuing with the example, if the price of 1 Bitcoin is at € 3,000, for a purchase of € 20 we will receive 0,00666667 bitcoins.
Or what is the same: if each Bitcoin is worth € 3,000, for a purchase of € 20 we will receive 666,667 satohis.
It is also important to know that since Bitcoin is the cryptocurrency queen, all cryptocurrencies determine their value in reference to bitcoin. In this way, knowing what a satoshi is will help us understand the value in bitcoins that is assigned to another cryptocurrency (whether determined by a market, a person or a company).
If we have a cryptocurrency (invented in this case) called AcademyCoin (AC) and we observe in a market that its price is marked as follows:
1 AC = 0.00000578 BTC
This means that one AC coin is worth 578 bitcoin satoshis.
For each AC you will receive 578 bitcoin satoshis if you exchange them at that time.
In summary, a satoshi is the minimum measure of the Bitcoin monetary system, it is correct to say that 1 bitcoin is equal to 100 million satohis.
To see the other units of measurement of the Bitcoin monetary system, click here and visit the Knowledge Base of the Bit2Me Support Center.