Chapter 14 – Bitcoin Divisibility – Satoshi’s or SATS

Bitcoin Divisibility Satoshi’s or SATS

A Sat or Satoshi is the smallest unit of account on the Bitcoin blockchain. Each bitcoin is divisible to eight decimal points (1 one-hundred millionth). Value can be transferred to anyone and anywhere in the world on a permissionless basis, and final settlement does not rely on any third-party. It is named to honor the creator of Bitcoin called “Satoshi Nakamoto” which was his pseudonym.

Units With millibits (mBTC) and Sats being the most common denomination in Bitcoin 1 Satoshi = 0.00000001 BTC or 100,000,000 sats in 1 Bitcoin

When people say “stacking sats” they literally mean accumulating more savings in Bitcoin. In the future when Bitcoin is more stable and worth ~10 million usd = 1 BTC than you might see things like coffee shops selling a cup of coffee for 10-20 sats a cup and cars selling for 5 millibits for a car as examples of how they will be used in daily life.

If you are concerned about microtransactions or machine to machine microtxs don’t worry as Bitcoin can be divided further into 1/1000 of a satoshi in a lightning payment channel

To clarify Divisibility is not the same thing as increased inflation either as 1 usd = 4 quarters = 10 dimes = 100 pennies with purchasing power and inflation only occurs when another dollar is printed to drive down the spending power of each dollar.

This is not financial advice. This information is for educational purposes only. Please consult a financial advisor before making any investment in Bitcoin or any other financial asset or crypto currency.