AtoZ Markets – I doubt that there is a person in the world that did not hear about Bitcoin. However, while many have already researched and studied the topic, there are also those, who just entered the crypto world. In this small educational article, we would like to draw your attention to the cryptocurrency-pioneer – Bitcoin.
Simple guide to Bitcoin Units of Measurement
Bitcoin’s price now stands at $40797.00, with its market capitalization figure being $774,946,824,692.51.
Considering the remarkable flactuation this cryptocurrency has undergone since last year, I believe it is vital to understand the basics of this digital coin. Today, we will concentrate our attention on breaking down the value of Bitcoin, simply put – what are the common Bitcoin Units of measurement.
We can look at Bitcoin as we would look at $1 note. We can break down the 1 dollar bill into 100 pennies. The same way, we can break down 1 Bitcoin into smaller units. Why do we want to do this?
Bitcoin’s ability to be further broken down is very important for user adoption. Moreover, it is crucial for promoting practical usage of BTC in terms of everyday fiat currency substitute. In fact, this Bitcoin’s feature also makes it easier to buy Bitcoin, while many buy fractions of the coin at the moment, considering the high price of this asset.
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You might be already aware that the first and the most unit of Bitcoin measurement is a single BTC. Furthermore, we can divide 1 BTC into smaller units – we can do so all the way down to eight decimal places, or 0.00000001 BTC.
What is the difference between a Satoshi and Bitcoin?
In the table below, you can find the most common Bitcoin measurements. They are ranging from the biggest, BTC, to the smallest Bitcoin unit, satoshi. In fact, there are some other measurements, but they are less popular.
As you might know, the smallest unit of Bitcoin measurement is named after the creator of Bitcoin protocol, Satoshi, Nakamoto. The second smallest Bitcoin unit, Finney, is named after Hal Finney, one of the first Bitcoin pioneers, who interacted with Satoshi Nakamoto.
How many Satoshi is equal to 1 Bitcoin?
Taking the above into consideration, we can conclude that 1 BTC will equal 100,000,000 (100 Million) satoshi, or 10,000,000 (10 Million) finney.
How many bits is equal to 1 Bitcoin?
Following the same logic, we can derive that 1 BTC equals to 1,000,000 (1 Million bits).
This great feature of Bitcoin allows it to be more precise, which enables users to perform more convenient transactions.
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