What are satoshis?
No, this is not a Far Eastern fish speciality, but a currency unit of Bitcoin. Like the Euro or US-Dollar, the Internet currency uses small units to make low value products and services accessible. The currency units are named after the person who invented the Bitcoin protocol: Satoshi Nakamoto.
While one Euro consists of 100 cents, one Bitcoin consists of 100 million Satoshis.
1 Bitcoin consists of 100,000,000 Satoshis!
Why is the Bitcoin so heavily divided?
Yeah, that’s an incredibly high number. But why was the Bitcoin so heavily compartmentalized? With its creation in 2009, developer Satoshi Nakamoto made a very future-oriented subdivision of the digital currency. Because the maximum amount of Bitcoins is very limited, Nakamato predicted a strong increase in value. Due to the very finely subdivided currency units, small amounts can be paid with Satoshis even if the Bitcoin’s value increases massively.
|Bitcoin price of a 10 € cinema ticket at a Bitcoin rate of 10,000 €||100,000 Satoshis|
|Bitcoin price of a 10 € cinema ticket at a Bitcoin rate of 100,000 €||10,000 Satoshis|
|Bitcoin price of a 10 € cinema ticket at a Bitcoin rate of 1.000.000 €||1,000 Satoshis|
Given the massive increase in value of Bitcoin, the following question rightly arises… HODL or pizza?