Satoshi
Last reviewed: December 18, 2025
The smallest unit of Bitcoin, named after its creator Satoshi Nakamoto. One Bitcoin equals 100 million satoshis (sats), making Bitcoin divisible to eight decimal places and enabling transactions of any size.
Detailed Explanation
Common Questions
One Bitcoin equals exactly 100 million satoshis. This means Bitcoin is divisible to eight decimal places: 0.00000001 BTC equals 1 satoshi. This extreme divisibility was built into Bitcoin's protocol from the beginning by Satoshi Nakamoto. To put this in perspective, if you own 0.01 BTC (one hundredth of a Bitcoin), you actually own 1 million satoshis. If Bitcoin trades at $50,000, then 1 million satoshis equals $500, and each individual satoshi is worth $0.0005 or five hundredths of a cent. The 100 million satoshi structure ensures Bitcoin can accommodate transactions of any size, from multimillion-dollar institutional settlements to micropayments worth fractions of a penny. No matter how high Bitcoin's price rises in the future, the satoshi denomination ensures the currency remains practical for everyday transactions and micropayments. This divisibility is a key advantage over traditional currencies where physical constraints limit how small denominations can practically become.
Yes, you can absolutely buy less than one Bitcoin—in fact, most people do. You don't need to purchase whole bitcoins to invest or use Bitcoin. Most cryptocurrency exchanges have minimum purchase amounts ranging from $1 to $10, allowing you to buy whatever amount fits your budget. When you buy Bitcoin, you're purchasing satoshis. A $10 purchase might get you 20,000 to 50,000 satoshis depending on Bitcoin's current price. Some platforms let you invest even smaller amounts through recurring purchases or dollar-cost averaging strategies. The misconception that you need to buy whole bitcoins prevents many people from participating, but Bitcoin's divisibility into 100 million satoshis means everyone can own Bitcoin proportional to their means. Whether you invest $5 or $5 million, you're buying satoshis—just different quantities. Many modern wallets and exchanges display balances in satoshis to help users think in whole numbers rather than intimidating decimal amounts. Start with whatever amount you're comfortable risking, remembering that cryptocurrency investments are volatile and you should never invest more than you can afford to lose.
Many Bitcoin enthusiasts prefer satoshi measurements for psychological and practical reasons. Psychologically, owning 10 million satoshis feels more substantial than owning 0.1 BTC, even though they're identical values. Whole numbers are easier to comprehend and compare than decimals, especially when dealing with small amounts. Practically, as Bitcoin's price increases, most transactions involve small fractions of a bitcoin, making decimal notation cumbersome. It's simpler to think about sending 50,000 sats than 0.0005 BTC. The Lightning Network, Bitcoin's layer-2 payment solution, frequently deals in satoshi amounts since it focuses on micropayments and small transactions where satoshi denomination makes more sense. Some advocates argue that pricing everything in satoshis prepares the ecosystem for a future where Bitcoin's price is much higher and almost all transactions will be in satoshi amounts rather than fractional bitcoins. Exchanges and wallets increasingly offer satoshi display options, and some countries with traditionally high-inflation currencies find satoshi pricing more natural. However, both measurements coexist, and you can easily convert between them. The choice often comes down to personal preference and context—institutional investors typically think in BTC while Lightning Network users typically think in sats.
Common Misconceptions
This misconception stems from not understanding Bitcoin's divisibility into satoshis. You never need to purchase a whole Bitcoin—you can buy any amount down to 1 satoshi (though exchange minimums typically start around $1-$10). If Bitcoin trades at $50,000 and you invest $100, you'll own 200,000 satoshis or 0.002 BTC. The psychological barrier of Bitcoin's total price per coin doesn't reflect the accessible reality of fractional ownership. Think of it like gold—you don't need to buy an entire gold bar to invest in gold; you can buy tiny fractions. Bitcoin's 100 million satoshi divisibility ensures accessibility regardless of price levels. In fact, Bitcoin could theoretically reach millions of dollars per coin, and satoshis would still enable microtransactions. The 'too expensive' perception keeps many potential users away unnecessarily. You can start with whatever amount you're comfortable investing, and that investment will be measured in satoshis proportional to Bitcoin's current market price.
Satoshis and bitcoins are the same asset at different scales—there's no distinction in value, utility, or ownership. Owning 1 BTC is identical to owning 100 million satoshis; they're just different ways of expressing the same quantity. Someone with 50 million satoshis owns exactly 0.5 BTC with all the same properties, rights, and value. The Bitcoin protocol makes no distinction between large and small holders—a transaction of 1 satoshi follows the same security and verification process as a transaction of 1,000 bitcoins. Your satoshis are stored in your wallet the same way, protected by the same private keys, and secured by the same blockchain. The only difference is units of measurement, like measuring distance in meters versus kilometers. Some new users worry that holding 'only' satoshis means they're not really participating in Bitcoin, but this is completely false. Whether you own billions of satoshis or fractions of a satoshi (though the protocol doesn't currently support sub-satoshi amounts), you're holding the same asset with identical properties and potential.
Satoshis and BTC aren't separate currencies requiring conversion—they're simply different units measuring the same thing, like inches and feet or cents and dollars. The relationship is fixed and mathematical: 1 BTC always equals exactly 100 million satoshis, and this never changes. When your wallet displays a balance, it's showing the same amount of Bitcoin just expressed in different units. Most wallets let you toggle between BTC and satoshi display with a simple setting change, but this doesn't alter your actual holdings—it just changes the numbers displayed. If you have 0.05 BTC and switch to satoshi display, you'll see 5,000,000 sats representing the exact same value. There's no conversion fee, no exchange process, no transfer required, and no risk involved because nothing actually changes except the unit label. Think of it like a thermometer that can display temperature in Fahrenheit or Celsius—switching the display doesn't change the actual temperature. Understanding this eliminates confusion and worry about somehow having value stuck in the 'wrong' denomination.