Crypto knowledge vii: what is satoshi (A break down of bitcoin)

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3 years ago

Hello Readians (Lol i had to coin that out from read.cash). I would just like to share some basic information about the break down of bitcoin value.

There was a time not too long ago where Bitcoins were a dime a dozen, no letterly, you could even get like thousands for a dime. While most of us never knew about them back then or did but didn't pay attention to Bitcoin, it kept gaining value.

  • As Bitcoins were lost over time

  • As the cost of mining grew

  • As the demand for an alternative store of value surged and

  • As an investment in blockchain technology started to trickle in.

This little digital coins began to increase in value. Now the time of owning a single Bitcoin is becoming harder and harder and out of the hands of many of the world's population.

Image source : coinsutra.com

A whole or a Piece Dilemma

Bitcoin is currently seen as an investment to most who are new to the space and want to take advantage of its consistent increase in value over time. While many would like to own 1 BTC, many feel discouraged because they cannot hold a full BTC and do not invest.

A misunderstanding many new cryptocurrency investors have often make a mistake to avoid BTC when deciding to invest. They prefer the idea of holding a whole of another token than a piece of BTC.

Bitcoin breakdown

A bitcoin can be broken down into many pieces up to eight decimals after the comma with the smallest unit of value being a Satoshi. Every Satoshi you own has the same characteristics as a full Bitcoin and will increase relatively in buying power along with the price measured in a total BTC.

The ability to break down Bitcoin into smaller parts means anyone can invest and own an amount of Bitcoin they are comfortable with investing, using or HODLing.

Here is a break down of the accessible units of Bitcoin.

Abbreviation >> Name >>>Unit In BTC

BTC >>> Bitcoi >>> 1.0 BTC

mBTC >>> Millibitcoin >>> 0.001

µBTC >>> Microbitcoin >>> 0.000001

SAT >>> Satoshi >>> 0.00000001

Which means you don't have to own a BTC outright you can hold various pieces of them and add them together over time. It's a very accommodating system that aims to help all of us get involved.

It doesn't stop there

While the Satoshi is the smallest value on the BTC network, it is not the lowest overall. As the introduction of the lightning network begins to grow with new nodes being added each week.

Bitcoin now has a second-layer solution for solving transactions that are faster and doesn't require the mainchain to secure the transactions allowing the network to confirm transactions in milli-satoshis, which is literally a thousandth of a satoshi.

Thanks for stopping by.

Cheers.

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3 years ago

Comments

Good info ! learnt something new in this article :)

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3 years ago

Heyyy😂😂I'm also from Africa Pc me on telegram and lets talk more😂😂@cryptoboygh

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3 years ago

Okay.

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3 years ago

A very useful information in deed! It is very useful for the newbies in the world of cryptocurrency. It is equally useful for the oldies in crypto who do not really know them.

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3 years ago