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Satoshi (SAT) is the smallest unit of Bitcoin (BTC) to have ever existed, and it is equal to 0.00000001 BTC.

Understanding the term

Just like fiat currencies around the world have a smaller unit that makes it easier for conversion, cryptos are also divisible into such units. Smaller units for Bitcoin are commonly known as “Satoshi,” after the pseudonym used by Bitcoin’s anonymous creator.

Satoshi is no different from the concept of cents for U.S. dollars. It exists because the divisibility of Bitcoin is crucial. If BTC was limited to only two decimal places, then payment of 0.10 BTC as a fee or any other practical use would be worth several thousand dollars.

Owning Bitcoin requires one to be rich because it is too pricey on a global scale, with the highest market capitalization of all. Bitcoin can be divided into smaller units to make them more affordable and easy to use. The counterpart of Satoshi in Ethereum is called a “wei”, which signifies the smallest fraction of Ethereum’s native currency.


When first introduced, Satoshi was supposed to represent the 100th part of a Bitcoin. After careful consideration, it was decided by the Bitcoin community that SAT would be one-hundredth of a BTC.

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