Satoshi
The smallest unit of Bitcoin, equal to one hundred-millionth (0.00000001) of a BTC. Named after Bitcoin's creator.
How it works
A satoshi is the smallest part of a bitcoin, one hundred-millionth of it. One bitcoin holds a hundred million satoshi, and the protocol cannot divide a coin any further.
The unit is named after Satoshi Nakamoto, the pseudonym of bitcoin's author, who published the system's description in 2008. The identity behind the name has never been established.
The subdivision was built in from the start out of necessity rather than convenience: if a coin appreciates a thousandfold, paying in whole bitcoins becomes impossible.
What it is worth
Converting at a bitcoin price of $60,000.
| 1 satoshi | $0.0006 |
| 1,000 satoshi | $0.60 |
| 100,000 satoshi | $60 |
| 1,000,000 satoshi | $600 |
This shows why the unit exists: a five-dollar purchase is roughly 8,300 satoshi, and that is far easier to hold in your head than 0.000083 BTC.
What to watch for
- Network fees are quoted in satoshi per byteA wallet shows a rate per unit of transaction size rather than a total fee. The final amount depends on how many pieces your transfer is assembled from.
- “Stacking sats” is not the same as investingThe phrase means buying small amounts regularly. It is a way to spread entry over time, not a guarantee of an outcome.
- Nothing smaller than a satoshi can be sentThe Lightning second layer settles in thousandths of a satoshi, but such amounts cannot exist on the main network.