What are Satoshis? Breaking Down Bitcoin into Bitesized Bitsawareness
When Bitcoin was first mined in 2009, the price of one coin was less than a penny. The low price made it possible for the average crypto user to get 1000s of Bitcoin for less than $10. In 2022, the cost of Bitcoin has settled at around $30,000, which means it takes a lot more money these days to buy a whole Bitcoin. For crypto users who still want to set realistic goals for accumulating Bitcoin and need a place to begin, they can start by stacking satoshis.
Like other cryptocurrencies, Bitcoin is divisible into smaller units called satoshis. A satoshi is the smallest form of Bitcoin that can be sent on the blockchain (link). There are 100 million satoshis (or sats, for short) in each Bitcoin, meaning a satoshi is worth 0.00000001 BTC or one hundred-millionth of a Bitcoin (link). That’s seven 0s followed by a 1. As of June 2nd, 2022, a single satoshi would be worth $0.00030 USD. Ten thousand satoshis would be worth about $3.00 USD at early-June 2022 Bitcoin prices.
Satoshis are named after the inventor of Bitcoin, Satoshi Nakamoto (link). Since Bitcoin’s inception, the identity of Satoshi Nakamoto has remained unknown (link). Being the namesake of an essential component of the Bitcoin network acknowledges Satoshi Nakamoto’s founding role in the burgeoning blockchain and cryptocurrency industries. Satoshi is generally abbreviated as “sat” or “s.”
Why Satoshis Make Sense
When it comes to buying and selling goods with Bitcoin (link), facilitating transactions in satoshis will make it exceedingly seamless to trade lower-priced items that cost a fraction of a Bitcoin. Instead of writing out a bunch of zeros to price out units in Bitcoin, retailers can list their prices in satoshis. If you wanted to buy a bottle of coke ($1.94 USD), it would cost 0.00006445 BTC or 6,445 satoshis, with Bitcoin currently valued at $30,101.62 USD. For most people, it’s easier to understand the price of the drink in satoshis. Beyond commercial use, transactions for small amounts of Bitcoin, such as mining fee payments and Bitcoin faucet awards, are listed in satoshi.
Screenshot of fees (in satoshis) associated with Bitcoin transactions (link)
Now that you know Bitcoin can be divided into smaller units called satoshis, are you more likely to buy some Bitcoin? Are you ready to start stacking sats?
Right now, you can stop by any of our Bitcoin ATMs to buy your own digital currency just like you would at a cash ATM. With over 7,000+ locations (link) across the U.S. and Canada, it’s easy to find a Bitcoin Depot ATM to use wherever you are. If you’re new to crypto, check out our user guide and videos (link) to learn more. You can also download our mobile app on the App Store or Google Play to send, receive, and store crypto through your mobile device.
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June 16, 2022