What is a Satoshi?
What started out as a cypherpunk niche has now become a global phenomenon that should disrupt the financial sector. However, despite their growing influence, cryptocurrencies, in general, are still far from the mainstream. Bitcoin has managed to become a household name thanks to its presence in the media and high price. This, however, does not make the general public understand what makes Bitcoin valuable. An underestimated aspect of Bitcoin is satoshi, the smallest denomination in BTC.
Named after Satoshi Nakamoto, the anonymous creator of Bitcoin, satoshi is the smallest indivisible unit of BTC. It represents a 100 millionth of a Bitcoin.
While it is by far the most important aspect of Bitcoin, it is not its only denomination. Bitcoin has a hierarchical structure on several levels – it has 1,000 millibitcoins (mBTC), 1,000,000 microbitcoins (μBTC) and 100,000,000 satoshis (SAT).
Satoshi Nakamoto himself defined the existence of satoshis as a unit. When deciding that the value of a single Bitcoin could be divided into 100 million shares, regardless of the price of Bitcoin, it would still be practical to use it as a medium of exchange.
However, it was only in 2010 that the then small Bitcoin community started to discuss potential names for the smaller denominations of the currency.
It was initially proposed that the hundredth of a Bitcoin, or 0.01 BTC, should be called satoshi.
After a few months of deliberation, the term satoshi caught on and was widely adopted by the community, instead of meaning the 100 millionth part of a Bitcoin.
In the early days of Bitcoin, when its market value was well below $ 2 billion, satoshis as a currency unit received relatively little attention. With the price of Bitcoin still minuscule at the time, few of its holders were concerned with breaking it down into such small units.