I am aware that Satoshi Nakamoto is the author of the paper that originated Bitcoin and the creator of the original bitcoin client. However, I often hear the term Satoshi as if it was a monetary unit.
What is a Satoshi?
Add a comment
|
6 Answers
A Satoshi is the smallest fraction of a Bitcoin that can currently be sent: 0.00000001 BTC, that is, a hundredth of a millionth BTC. In the future, however, the protocol may be updated to allow further subdivisions, should they be needed.
Further examples of units
- 1 BTC = 1,000 mBTC (millibitcoin)
- 1 BTC = 1,000,000 μBTC (microbitcoin)
- 1 BTC = 100,000,000 Satoshis
- 1 mBTC = 100,000 Satoshis
- 1 μBTC (microbitcoin) = 100 Satoshis
answered Aug 30, 2011 at 22:57
-
18Note that it's possible that future protocol versions will introduce amounts smaller than a Satoshi, if deemed required by the community. I'm not sure how likely this is. bitcoin.stackexchange.com/questions/122/… Commented Aug 30, 2011 at 23:02
-
1@eMansipater It might be worth editing your answer just a touch to ensure that people don't think that there is a limit to the number of decimal places possible.– GaryCommented Sep 9, 2011 at 10:35
-
1
-
4
-
1
1 mBTC = 0.001 BTC
1 mBTC = 100,000 Satoshis
1 uBTC = 0.000001 BTC
1 μBTC = 100 Satoshis
1 Satoshi = 0.00000001 BTC
100 Satoshis = 0.000001 BTC
1,000 Satoshis = 0.00001 BTC
10,000 Satoshis = 0.0001 BTC
1 BTC = 100,000,000 Satoshis
1 BTC = 1,000,000 μBTC
1 BTC = 1000 mBTC
A Satoshi is 0.00000001 BTC and currently the smallest transaction unit.
If a Satoshi was equivalent to one penny, a microBTC would be equivalent to one dollar, and one BTC would be equivalent to 1,000,000 dollars.
With one BTC on the order of $1,000 USD, a Satoshi is equivalent to .001 penny
-
3@Murch -1 on your comment. He words it different and different readers respond differently to different wordings. He apparently explains it the way he thinks about it. Not all readers have a high enough IQ to see all wordings as equivalent, thus there is value in multiple answers. See also my comment to Lohoris. Vertical screen and database space are not scarce resources. The Knowledge Age is a post-scarcity antidote to Malthusian propaganda. I tried to obviate your down vote, but another person down voted after I wrote this comment. Democracy is the LEAST common denominator. Commented Aug 25, 2014 at 16:29
-
@ShelbyMooreIII We disagree: You find it useful, I don't. That's quite alright though.– Murch ♦Commented Aug 26, 2014 at 18:41
-
Most informative answer to someone who hits Google for "1 satoshi", e.g. for someone who encounters the term but knows little of BTC. Commented Mar 2, 2017 at 8:05
A Satoshi is a one hundred millionth of a Bitcoin.
Bitcoins are delimited to eight decimal places so even if Bitcoins are worth $1,000,000 each, you can still do penny transactions.
-
This does not provide an answer to the question. To critique or request clarification from an author, leave a comment below their post - you can always comment on your own posts, and once you have sufficient reputation you will be able to comment on any post.– o0'.Commented Mar 12, 2013 at 12:19
-
@Lohoris Just for my sake, can you clarify why this isn't an answer? It's not as comprehensive as the other answer, but it's definition does seem to match the definition of a Satoshi provided by the other answer, at least numerically (since the smallest unit could change in the future).– user3930Commented Jul 21, 2013 at 15:42
-
@JohnBensin it doesn't add anything to the accepted answer, and it has been posted much later. Also, it includes a pointless "if (when?) Bitcoins are worth $1,000,000 each".– o0'.Commented Jul 21, 2013 at 15:54
-
1@Lohoris I agree. I downvoted because I felt that it didn't add anything to the question. The speculation may have just been an extreme/hypothetical example, but I agree that it doesn't add any new information.– user3930Commented Jul 21, 2013 at 16:25
-
@Lohoris -1 on your comment. "Not adding anything" to prior answers doesn't constitute "not an answer". Clarifying that Satoshi is intended to be analogous to the penny if BTC attains sufficient valuation is addressing the question "What is a Satoshi?". I wish I could downvote your comment. Commented Aug 25, 2014 at 0:00
If you need formula
108 Satoshis == 1 BTC
or in Python
def btc2satoshi(btc: float) -> int:
return int(btc * 10**8)
BTC = 1.0
print(btc2satoshi(BTC))
-
1@JeanMonet thanks for the fix! That was a dumb mistake, indeed. ) Commented Sep 26, 2020 at 4:35
A 'Satoshi' is the smallest unit of the Bitcoin cryptocurrency and is named after Satoshi Nakamoto, the pseudonymous creator of Bitcoin. One Satoshi represents 0.00000001 BTC, or one hundred millionth of a Bitcoin.
In relation to Bitcoin, the concept of Satoshis allows for more precise transactions and flexibility in value, especially as the price of Bitcoin fluctuates. It enables users to transact with very small amounts of Bitcoin without needing to send a whole Bitcoin or even a large fraction of one.
Here's a detailed explanation of Satoshis with examples:
Denominations: Bitcoin can be divided into smaller units, much like how a dollar can be divided into cents. The smallest possible unit of Bitcoin is a Satoshi. To give you an idea of the relationship between Satoshis and Bitcoins:
1 Bitcoin (BTC) = 100,000,000 Satoshis 0.01 Bitcoin (BTC) = 1,000,000 Satoshis 0.001 Bitcoin (BTC) = 100,000 Satoshis
Transaction examples: Let's say you want to buy a digital product online that costs $1, and the merchant accepts Bitcoin as payment. If the current value of Bitcoin is $50,000, the equivalent value in Bitcoin would be 0.00002 BTC (1/50,000). In Satoshis, this would be 2,000 Satoshis (0.00002 x 100,000,000).
Microtransactions: Satoshis enable microtransactions, which are small transactions that may not be economically feasible with traditional currencies due to transaction fees. For example, if you wanted to tip a content creator 50 cents worth of Bitcoin, you could send them 1,000 Satoshis if the price of Bitcoin is $50,000 (0.00001 BTC).
Price precision: As the value of Bitcoin increases, using Satoshis becomes more relevant, allowing for more precise price representation and smaller denominations. For instance, if Bitcoin's value reaches $100,000, a $1 purchase would only require 1,000 Satoshis (0.00001 BTC) instead of 2,000 Satoshis at a $50,000 valuation.
In summary, a 'Satoshi' is the smallest unit of Bitcoin, enabling precise and flexible transactions, especially for smaller amounts and microtransactions. It also helps accommodate Bitcoin's fluctuating value, making it more practical for everyday use.
