What is Satoshi?
Satoshi came after Satoshi Nakamoto, the creator of bitcoin cryptocurrency? Now you might be asking what is Satoshi? Satoshi is the smallest unit of bitcoin. Just like a cent is a smaller unit of the dollar. Just like in 100 cents to one dollar, In bitcoin 100 million satoshis to one bitcoin.
Unlike the normal physical currency like the dollar, euro, or pound cryptocurrency completely exists in the digital world. However, despite this limitation, cryptocurrency can be divided into small units. Just like pound into pence, dollar into cents, and Bitcoin into Satoshi.
In 2008 Satoshi Nakamoto, the anonymous person published a paper 2008 explaining blockchain. And that jumpstarted the concept of bitcoin and blockchain. The paper explained “Bitcoin: A Peer-to-Peer Electronic Cash System”. There Nakamoto described the peer system as a solution for extra spending.
Satoshi represents one hundred millionths of a bitcoin. And small units always make any cryptocurrency easier to use. The general unit structure of bitcoins has 1 bitcoin (BTC) equivalent to 1,000 millibitcoins (mBTC). 1,000,000 microbitcoins (μBTC), or 100,000,000 satoshis. While the exact figure is unknown, it is estimated that Satoshi Nakamoto may possess 1 million bitcoins, equivalent to 100,000,000,000,000 satoshis.
While not part of a major currency pair, bitcoins can be converted to and from other currencies. Bitcoin exchanges exist in order to allow individuals to conduct transactions. This involves depositing dollars, pounds, or other supported currencies into an account in one of the exchanges. Where the balance can be used to buy or sell bitcoins and ultimately convert them into other currencies. Just as with the exchange rates between established currencies, the value of bitcoins will fluctuate according to supply and demand.
While individuals may keep a penny or pence in their pockets, physical versions of cryptocurrencies like bitcoin have not become as mainstream. This is primarily for practical reasons since the main draw of bitcoin is that it is digital and hard to counterfeit. Not having a physical presence means that bitcoins are more secure, even before blockchain technology is taken into consideration. Another reason for the lack of physical bitcoins is that bitcoins are not widely accepted in day-to-day transactions.