Posted by You probably have heard of Satoshi Nakamoto 🙂 a mythical author of the first crypto currency in existence called Bitcoin and basically the entire blockchain technology as we know it today. Whether this Japanese guy is a real person or it is all a smart made-up, we leave it to the historians to determine 😉
You as a crypto trader should know that Satoshi is a widely used monetary unit in the crypto world. As things are now, each bitcoin can be divided into fractions and it has 8 decimals. This smallest fraction of a bitcoin is called 1 satoshi and it equals 0.00000001 BTC (in other words a hundredth of a millionth BTC). You can also put it the way that each bitcoin has 100 million satoshi units.
Be aware that in the future, bitcoin protocol may be updated to allow further subdivisions. Also it should be noted that some exchanges are already using 9 decimals instead of 8. I am not a big fan of this practice, because it is very confusing, but it is what it is.
Common notations may look like this:
– 0.00001500 BTC (8 decimals)
– 0.000015000 BTC (9 decimals)
– 1500 satoshi
– 1500 sat
– 1500 sts
All the notations above represent the same value and are completely interchangeable.