The satoshi is the smallest unit of bitcoin currency that is recorded on the blockchain. 

While fiat currency are usually split into smaller denominations for convenience in transacting (i.e., dollars and cents in the United States, pounds and pence in the United Kingdom), the digital format of cryptocurrencies allow them to be divided into miniscule units such as satoshi

When spending cryptocurrency, an item or service may cost much less than the value of a single bitcoin (BTC). Fortunately, cryptocurrency are divisible and their users may hold fractions of a single coin. The satoshi is named after the currency’s founder and its value is one-hundred-millionth (0.00000001) of a bitcoin. Contrary to popular belief, certain payment channels will accept smaller units–sometimes referred to as millisatoshi–however these are too miniscule to be recorded on the blockchain.

 

Breaks down the various bitcoin units.

CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.

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