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Analyzing Market
Glossary

Satoshi

A satoshi is the smallest divisible unit of bitcoin. One bitcoin equals 100 million satoshis, so a satoshi is 0.00000001 BTC.

How it works

Because a whole bitcoin can represent a large amount of value, satoshis allow very small and precise amounts to be sent and priced. The unit is named after Satoshi Nakamoto, Bitcoin’s pseudonymous creator. Other cryptocurrencies have their own smallest units defined by how many decimal places their protocol allows. Layer-2 systems such as the Lightning Network operate in satoshis (and even smaller units) to enable tiny, low-cost payments.

Why it matters

Satoshis make bitcoin practical for small transactions and fine-grained pricing without needing to deal in fractions of a whole coin. As interest in small denominations has grown, prices are increasingly quoted in “sats.”

Example

Sending 50,000 satoshis is the same as sending 0.0005 bitcoin, just expressed in the network’s smallest unit.

Satoshi: Frequently Asked Questions

How many satoshis are in one bitcoin?
One bitcoin contains exactly 100 million satoshis. This means a single satoshi is 0.00000001 BTC, the smallest amount the Bitcoin protocol can record. The fine division lets people send and price very small amounts of value without dealing in fractions of a whole coin.
Why do people quote prices in sats instead of bitcoin?
Because a whole bitcoin can represent a large amount of value, quoting in satoshis makes small purchases and micro-payments easier to read and reason about. As interest in tiny denominations has grown, sats have become a popular way to express prices, especially on layer-2 networks designed for low-cost transactions.
Is a satoshi a separate coin from bitcoin?
No. A satoshi is not a different cryptocurrency; it is simply the smallest denomination of bitcoin itself, much like a cent is a fraction of a dollar. Sending 50,000 satoshis is identical to sending 0.0005 bitcoin, just expressed in the network's smallest unit.
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