February 1, 2020

What unit is used to describe the smallest amount of bitcoin?

Everyone knows how twice, that for one kilometer – 1000 meters, for one liter – 100 milliliters, for 1 kg – 100 grams, in one dollar – 100 cents. Indeed, in one gigabyte a little more than 1,000,000,000, according to the binary system. But what, in this case, can cryptocurrency be broken, namely bitcoin, and is it possible at all?

The most interesting thing is that this really works in the case of bitcoins, so get acquainted – Satoshi is the smallest unit of Bitcoin cryptocurrency, and its ratio is 100 million Satoshi to one bitcoin and has the designation SAT.

The name can be explained as logically as possible – it is named after Satoshi Nakamoto, the creator of the protocol used in blockchains and cryptocurrencies of bitcoins.

Surprisingly, the fact – Satoshi became available back in 2011, but its popularity has overtaken only recently ..

“Decimals scare people”

So why do we still need SAT?

Now cryptocurrency business is developing at an incredible speed, and we already have the opportunity to think about how cryptocurrency funds will participate in our daily lives. For example, pay for purchases using BTC. But it is precisely here that we are confronted with small, but rather spoiling, general difficulties.

As consumers, we are used to buying goods and services that have user-friendly price tags — integers or numbers rounded at the end. But due to the relatively high price of bitcoin compared to the price of many everyday goods and services, when goods are valued at BTC, they usually end with relatively unattractive numbers – for example, $ 5 is 0.00057206 BTC at the time of input. However, the SAT was able to change this and gave consumers a convenient number to work with – for example, $ 5 equals 57,206 satoshi at the time of writing, which is not the most beautiful, but cleaner than 0 00057206.

In short: if things are valued exclusively at BTC, this can lead to sellers getting unattractive price tags that can confuse consumers when placing an order.

In addition, Bitcoins can be divided into smaller units in order to simplify and facilitate small transactions.

In principle, here we have deduced the two most important reasons that affect Satoshi’s growing popularity. And you, in any case, are recommended to familiarize yourself with the SAT, since it is definitely still to stay here. After all, after eight long years, Satoshi finally gained popularity due to the fact that he created a more convenient way of pricing goods and services in BTC – without a price tag that looks unattractive or misleading consumers.

Disclaimer

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.

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