When Satoshi Nakamoto created Bitcoin, they designed it in such a way that should the value of the cryptocurrency increase dramatically, there would still be an inclusive decimal value for the masses. Satoshis, the smallest decimal place in one Bitcoin, could one day be how we buy a cup of coffee anywhere in the world, using the same currency from Britain to Japan.
Who is Satoshi?
Satoshi Nakamoto is the enigmatic figure credited with birthing Bitcoin, the groundbreaking decentralized cryptocurrency, or described on its website as "a free software project with no central authority." As the pseudonymous creator, Satoshi's true identity remains shrouded in mystery, sparking endless debates and intrigue within the crypto community.
Launched in 2009, Bitcoin revolutionized the financial world, offering a peer-to-peer digital cash system without the need for intermediaries like banks. Satoshi's whitepaper laid the foundation for this groundbreaking technology, establishing the concept of blockchain and sparking the rise of a vast and evolving ecosystem of cryptocurrencies.
Despite numerous theories and claims, the identity of Satoshi Nakamoto remains one of the most captivating mysteries in the world of cryptocurrency and modern influential people.
Satoshi's contribution extends beyond just Bitcoin
Satoshi Nakamoto's creation of Bitcoin in 2009 introduced the world to the revolutionary concept of blockchain technology. While Satoshi is not credited with designing blockchain technology, they did play a valuable role in solving inconsistencies that then made it universally viable.
At its core, blockchain is a decentralized and immutable distributed ledger that records any transaction across a network of computers. It provides the foundation for most cryptocurrencies, including Bitcoin, ensuring secure and transparent record-keeping without the need for intermediaries like banks.
The decentralized nature of blockchain makes it resistant to single points of failure, enhancing security and preventing data manipulation. Its transparency allows anyone to verify transactions, promoting trust, service, and accountability. Additionally, the immutability of blockchain ensures that once data is recorded, it cannot be altered, safeguarding the integrity of the entire system.
This powerful technology continues to drive innovation across various industries beyond the realm of cryptocurrencies.
How many Satoshis are in a Bitcoin?
Much like fiat currencies, cryptocurrencies can be divided into smaller units of money. While the United States dollar and Euro have cents as their smallest denomination, Bitcoin has satoshis (also referred to as SATs). But unlike cents, satoshis are 100 millionth of a Bitcoin, meaning that Bitcoin can be divided into 100 million units, that's eighteen decimal places.
See the table below illustrating the various values of Bitcoin vs satoshis.
How many Satoshis are in a Bitcoin, exactly?
1 Satoshi 0.00000001 Bitcoin
10 Satoshi 0.00000010 Bitcoin
100 Satoshi 0.00000100 Bitcoin
1,000 Satoshi 0.00001000 Bitcoin
10,000 Satoshi 0.00010000 Bitcoin
100,000 Satoshi 0.00100000 Bitcoin
1,000,000 Satoshi 0.01000000 Bitcoin
10,000,000 Satoshi 0.10000000 Bitcoin
100,000,000 Satoshi 1.00000000 Bitcoin
As defined by the technology, only 21 million Bitcoin will ever exist, meaning that there will only ever be 210,000,000,000,000 satoshis. That's a tough figure to wrap your head around. As indicated above the link between satoshis and Bitcoin is several decimal places, certainly not calculations we were taught in school.
A less complicated notion to digest is that satoshis were named after Bitcoin's creator, Satoshi Nakamoto.
Bitcoin measurement units
The creator of the peer-to-peer digital currency outlined in the Bitcoin white paper the decimal places that Bitcoin is divisible by. Throughout the whitepaper, they only referred to two measurement units, Bitcoin itself and satoshis. Several years down the line as the BTC price continued increasing, market research and various discussions resulted in the decision that more measurement units were required.
Five years after Satoshi Nakamoto disappeared from online forums, a universal ISO update was released that recognized two new Bitcoin measurements.
- MicroBitcoin (μBTC)
1 BTC = 1,000,000 MicroBitcoins (μBTC) = 100 SATs
- MilliBitcoin X (mBTC)
1 BTC = 1,000 MilliBitcoins (mBTC) = 100,000 SATs
When taking a glance at your Bitcoin wallet you can choose to see satoshis, microBitcoins or miliBitcoins. By any account, it will likely take a few years before we're referring to buying goods in SATs.
How to calculate SATs
As we've already established in the information provided above, 1 BTC is worth 100,000,000 SATs. While one could do the maths, there are plenty of tools available online that can do the sums for you. Better yet, as satoshis are recognized as universal units of value, you can change the currency setting on several sites.
For instance, on CoinMarketCap, you can change the default currency to SATs by selecting the currency drop-down option in the top right-hand corner. Select the Satoshi option under Bitcoin units.
This will then display all values as satoshis.
Alternatively, you can use one of the many satoshi calculators available online, which will instantly convert your currency value into SATs. In the future when using SATs as a form of payment, the value owed will likely be presented to you in the same form, allowing for a much easier consumer experience.
Key Takeaways
SATs are used by the Bitcoin network and crypto exchanges. Miners on the Bitcoin blockchain use SATs to determine the fee owed to them for transactions validated, while some exchanges use SATs to measure altcoins' value and performance against Bitcoin.
It is likely in the future when Bitcoin is fully integrated into our financial systems that prices in shops and supermarkets will be reflected as a value in SATs as opposed to BTC.
This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.
