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A Satoshi is the smallest unit of Bitcoin, representing 0.00000001 BTC. It is named after Bitcoin's anonymous creator, Satoshi Nakamoto.

Bitcoin's divisibility allows it to be broken down into smaller units to accommodate microtransactions and smaller value transfers. A Satoshi is the smallest possible unit of Bitcoin, and it is commonly used to measure and discuss very tiny amounts of the cryptocurrency.

For instance, if the price of Bitcoin is $50,000, one Satoshi would be equivalent to $0.0005. Satoshi units are used in various scenarios, including micropayments, online tipping, and measuring transaction fees.


1 Bitcoin is equivalent to 100,000,000 Satoshis

Example: Bob wants to reward content creators on a social media platform for their valuable posts. Instead of sending them full Bitcoins, he sends tips in Satoshis, allowing him to support multiple creators with small amounts without incurring high transaction fees.


Crypto Basics
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