If you are new to Bitcoin (BTC) or you have been in the market for a while and the question “What is a Satoshi?” continues to bother you, then don’t be worried about it. We have a clear answer to that question.
Indeed, in this guide, we are going to answer the question “What is a Satoshi?” and even more. We will go through the meaning of the word “Satoshi”, how many Satoshis are in a Bitcoin and what is a Satoshi worth.
What is a Satoshi?
Let’s start from the beginning: What is a Satoshi? Satoshi is the name given to the smallest Bitcoin unit. This is the equivalent of how cents work for dollars or euros. The main difference is that the satoshi to bitcoin ratio is 100 million. That means that there are 100 million satoshis (also known as sats) per BTC.
Now we know that 1 BTC equals to 100 million satoshis. This can be certainly helpful to make small payments. Nowadays, $20 in BTC are equal to 0,000571 BTC ($35,000 per BTC). If we use satoshis, $20 would be equal to 57.142,85 satoshis. Thus, it becomes faster and easier to use Satoshis rather than BTC.
What is a Satoshi Worth?
Then, this gives us the answer to our next question: What is a Satoshi worth? In order to know the price of 1 satoshi, you will have to divide the price of 1 BTC by 100,000,000. Thus, if 1 BTC is equal to $35,000 each satoshi would be worth $0,00035. The higher the price of BTC the higher the price of each satoshi and vice-versa.
The answer to “What is a Satoshi unit?” is very clear. We are talking about the smallest possible unit of Bitcoin. The price of each satoshi will be determined by the market price of BTC, the largest cryptocurrency in the world.
At the moment, there are several sites that allow us to get access to the live price of a satoshi. Having a clear idea of what is a satoshi worth would allow us to better understand the crypto market. Moreover, it can also be helpful for us to handle our funds and understand how Bitcoin works.
Many Bitcoin supporters prefer to price things in satoshis. However, this is not the standard. Most of the prices are still represented in Bitcoin rather than satoshis. Despite that, this didn’t stop companies and some platforms to start using sats and replace BTC as the unit of account.
Could a Satoshi be Worth $1?
Theoretically yes. However, it might be somehow difficult for it to happen. In order for each satoshi to be worth $1, the price of a single BTC coin should be $100 million dollars. This is somehow difficult to happen.
Indeed, the total market capitalization of Bitcoin would have to skyrocket to as high as 2,1E15. This is equal to $2.100.000.000.000.000. This is certainly much more than what we can imagine. Nevertheless, the only way for satoshi to reach this valuation is if the U.S. dollar massively devaluates.
If that happens, these $100 million dollars might not be worth $100 million dollars as we know them today, but much less. Nonetheless, having a massive devaluation of the U.S. dollar seems unlikely in the short term.
Could a Satoshi be Worth $0.01?
This is a more plausible situation. We are talking about the satoshi reaching parity with the U.S. cent. So as for this to happen, each BTC should be worth $1 million dollars. Although this could be certainly difficult, in the next decades it could become reality.
If Bitcoin reaches a price of $1 million per coin, then its market valuation would reach $21 trillion dollars. This is certainly a lot. Indeed, few analysts are giving BTC the possibility to reach so large valuations.
The recognized investment bank JPMorgan considers that Bitcoin could reach a price per coin of $650,000 in the next years. This is certainly not a minor thing coming from a traditional financial institution such as JPMorgan.
A few years ago, JPMorgan’s CEO Mike Dimon criticized Bitcoin. Nowadays, with the expansion of the crypto market, they seem to be changing their strategy about Bitcoin. A $650,000 BTC would bring the price of each satoshi to $0,0065.
What is Satoshi?
When we try answering the question “What is a Satoshi?” we cannot avoid talking about Satoshi Nakamoto. As you might already know, Bitcoin was created by an anonymous person (or group of individuals) called Satoshi Nakamoto.
Until today, there is no clear information on who Satoshi Nakamoto is. There are some conjectures about his real identity. But there are no conclusive results on that matter.
Satoshi Nakamoto was able to solve one of the most important problems to digital currency: the double-spending issue. By creating Bitcoin and the Proof-of-Work (PoW) algorithm, the world saw the first digital currency that could be transferred all over the world in a safe way.
Due to his involvement in creating Bitcoin, the smallest Bitcoin unit was called Satoshi. Nowadays there are several companies offering information in satoshis rather than in BTC. However, most of the prices are still denominated in BTC rather than satoshis.
Now that you know who Satoshi Nakamoto is, we can understand what is a Satoshi Bitcoin unit. It is the smallest unit of a Bitcoin. Its name derives from Bitcoin’s founder and it is now a secondary unit of account in several crypto platforms.
How do you Get Satoshis?
If you already know what is a Satoshi, you might be wondering how to get satoshis. The easy way to do so is by buying them in an exchange. Cryptocurrency exchanges are platforms that allow users to have access to virtual currencies.
All the largest exchanges in the crypto industry are allowing users to buy Bitcoin. If you buy 1 BTC, then you are the owner of 100,000,000 satoshis. This is automatic. If you own Bitcoin, then you own satoshis.
If this is still not clear, let’s use a real-world example. If you have 100 cents, then you have $1 dollar. Of you own €1, then you also have 100 cents of euro. The same happens with Bitcoin. If you own 1 BTC you own 100 million sats and vice-versa.
When you use a crypto exchange, then you can buy Bitcoin, and consequently, you will own satoshis. If 1 whole BTC is too expensive, then you can buy smaller amounts of BTC. For example, you can buy 0.01 BTC, or the equivalent to 1 million satoshis. If you have 0.001 BTC, then you have 100,000 satoshis.
The issue with exchanges is that everything is nominated in BTC units rather than in satoshis. This is why it becomes complicated for many users to understand what is a Satoshi. With this explanation, we aim at making it easier for you to understand how to get satoshi.
Another way to earn Satoshis is by using a Bitcoin faucet. Bitcoin faucet became very popular when Bitcoin was just starting to be known. Users could earn large amounts of BTC just by being logged to a website and performing an action.
In the beginning, when Bitcoin was not popular, users could earn several BTC coins per day. As the price of the virtual currency grew, the rewards have fallen. Nowadays, users can earn satoshis just by doing small interactions on websites.
For example, some of these faucets request users to click at least once per hour and complete a captcha. Moreover, users can easily start using satoshis and Bitcoin. One of the most popular Bitcoin faucets is called FreeBitco.in and it has been operative for several years.
Nevertheless, there are several faucets in the market. Moreover, if you want to earn other cryptocurrencies, you can also do it. Faucets are not only to earn Satoshis but also other digital assets. For example, Bitcoin Cash (BCH) and Litecoin (LTC) can also be shared with users through faucets.
It is worth pointing out that once you earn enough satoshis, you will be able to withdraw them from the platform. Each of these faucets has a different threshold for withdrawing funds. The lower the withdrawal limit, the better it would be for you to know what is a Satoshi.
Playing Games to Earn Satoshis
This “What is a Satoshi?” guide needs to have a section about entertainment. It is certainly possible to start earning satoshis by playing some simple but funny games. Crypto users and newcomers that want to get access to Bitcoin started playing these games.
At first, there were some applications that you could download to your iOS or Android smartphone. Nowadays, there are more sophisticated solutions such as satoshi platforms that allow users to receive Satoshis using the Lightning Network (LN).
Games allow users to interact with the platforms in different ways. They can get rewarded to make the gaming experience more sophisticated. Furthermore, they can also be charged or pay for extra features. By using microeconomic incentives, users can start earning Satoshis on a regular basis.
This would allow you to start earning Bitcoin playing games. This can also help you understand what is a Satoshi considering you will get access to sats for the first time. If you do not know how to handle them, this can be one of the easiest ways to start learning about what is a Bitcoin satoshi unit.
The negative thing about this platform is related to the fact that you need to pay to get access to it. The fee to play some of the games includes 1000 satoshis. Although this is not expensive, it might become difficult if a person does not have sats available to be used.
Alien Run is one of the oldest and most popular games to earn free Bitcoin. This game has been online for several years and it can be downloaded to your smartphone in just seconds. If you want to know what is a Satoshi, then this could be a great option.
You will have to complete missions with your character. The goal is to pass all the levels and earn larger satoshi rewards. The better you are at succeeding, the larger your satoshis.
Users can withdraw their funds as soon as the total value reaches 20,000 Satoshis. Some users are earning hundreds, if not thousands of Satoshis per day using this simple and addictive game.
In order for the app to make money, they will be sharing videos from sponsors. The good thing is that the whole experience is not invasive at all. The videos will not be displayed so often and they could also help you get new lives if you lose.
We are talking about free Satoshis that you can earn just by playing some of the most interesting games available.
In addition to it, the company behind Alien Run has released other Satoshi-related games. All of these games are linked. That means that if you earn 10,000 satoshis in one of these platforms, you will be able to add them to the funds you have in the other app. Once you reach the minimum threshold of 20,000 satoshis, you will be able to withdraw them to your wallet.
Final Words on What is a Bitcoin Satoshi Unit
A Satoshi is the smallest Bitcoin unit you can find in the market. There are 100 million Satoshis in a Bitcoin. Investors and users can simply get access to Satoshis by buying Bitcoin. Moreover, it is also possible for them to play games or use faucets to learn what a Satoshi is.
As the price of Bitcoin continues to expand in the market, each satoshi becomes more valuable. While in the past Satoshis didn’t have almost any meaning (less than 100,000 were worthless), now crypto users are starting to give more value to them.
Some platforms and companies are already using Satoshis as a unit of account. Moreover, prices are easy to be displayed as satoshis rather than as BTC.