A single Bitcoin is divisible, just like dollars, and its smallest unit is called a satoshi.
There are 100 million satoshis (sats) in one Bitcoin, meaning each satoshi is worth 0.00000001 BTC. For ONE satoshi to equal one cent, Bitcoin would need to reach $1 million in value.
In early 2022, one satoshi was worth less than one-twentieth of a cent.
The satoshi isn’t Bitcoin’s only subdivision:
- A millibitcoin (mBTC) equals one-thousandth of Bitcoin (0.001 BTC).
- A microbitcoin (µBTC) equals one-millionth of Bitcoin (0.000001 BTC).
- On the Lightning Network, transactions can use an even smaller unit—the millisatoshi (one-thousandth of a satoshi)—though this isn’t usable on Bitcoin’s main network.
Terms like "satoshis" help users avoid writing long strings of zeros when dealing with tiny cryptocurrency amounts.
Why Divisibility Matters
Dividing Bitcoin into fractions enables microtransactions, such as buying coffee—though Bitcoin’s volatility makes it an impractical medium of exchange. Satoshis became essential as Bitcoin’s price soared to tens of thousands of dollars, allowing investors to buy as little as $1 worth of BTC instead of a whole coin.
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The Future of Satoshis
As Bitcoin’s block rewards halve roughly every four years, newly minted tokens will eventually be counted in satoshis rather than whole BTC. New Bitcoin production will cease next century when the smallest satoshis are exhausted; minting infinitesimally smaller amounts indefinitely is impossible.
The satoshi honors Bitcoin’s pseudonymous creator, Satoshi Nakamoto, who stopped using the identity in 2010, leaving few clues about their true persona.
FAQs
Q: How many satoshis are in one Bitcoin?
A: 100 million satoshis equal 1 BTC (0.00000001 BTC per satoshi).
Q: Can you buy less than one satoshi?
A: Only on Layer 2 networks like Lightning (millisatoshi), not on Bitcoin’s base layer.
Q: Why was the satoshi created?
A: To enable precise valuations and microtransactions as Bitcoin’s value grew.
Benedict George is a freelance writer for CoinDesk. He holds degrees from the University of Oxford and City, University of London. He does not own cryptocurrency.
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