Almost all currencies in circulation are divided into component parts. For example, 1 dollar consists of 100 cents, 1 ruble - of 100 kopecks, etc. Cryptocurrency is no exception. The possibility of division, as well as the number of minimal parts that make up a unit of currency, is laid down by the developers when creating a coin.
The history of satoshi
The technical ability to divide Bitcoin into parts was realized by its creator (or group of creators) under the pseudonym Satoshi Nakamoto. He used the traditional word “cents” to refer to small shares of cryptocurrency. But initially there was no point in splitting because BTC was very cheap.
The first transaction to exchange Bitcoin for fiat money took place in September 2009. Then Marty Malmi sold 5050 bitcoins to a user under the nickname NewLibertyStandard for just $5.02.
The first purchase of a physical product using Bitcoin occurred in May 2010. American Laszlo Hanyecz paid 10,000 bitcoins for two pizzas, and Jeremy Stardivent agreed to order their delivery.
At that time, Bitcoin was basically worthless. The terms of such transactions depended entirely on the agreements of the parties.
In the summer of 2010, the first cryptocurrency exchange Mt. Gox, which actually became the basis for determining the market price of Bitcoin. By the fall of the same year, the BTC rate rose above $0.5. And on November 15, at one of the forums, the idea of dividing Bitcoin into fractional parts was first voiced. A user under the nickname ribuck suggested introducing a minimum tradable share corresponding to 1/100 BTC. But no one supported his initiative, since there was no objective need for this.
In February 2011, Bitcoin reached parity against the dollar, and the same ribuck returned to his idea. In discussions with other users, an agreement was reached to introduce small shares of BTC. As a result, a new digital unit appeared - satoshi, named after the creator of Bitcoin.
How many satoshi are in one bitcoin?
One Bitcoin consists of 100 million Satoshi. It is difficult to say why the developers set this particular number. Perhaps they understood that with the development of this technology there would be a need to split the cryptocurrency into very small parts.
Today we can say that they were right. At the end of 2022, Bitcoin was worth about $17,000. If the developers had split it similar to fiat money (1 BTC = 100 Satoshi), then at the current rate 1 Satoshi would have cost $170, which means this currency would be unsuitable for many retail transactions .
As the market developed, other values were introduced. They were used in various services and programs for convenience or to achieve some special goals.
This wide range of shares reflects the high volatility of digital assets. There were periods in the history of cryptocurrency when 1 MBTC was considered not such an exorbitant amount. But now it cannot be ruled out that one day the Bitcoin rate will rise to such values that even msa will become a convenient unit of account.
Not only Bitcoin, but also other cryptocurrencies have small shares. Their number and name are determined by the developers and/or the community. For example, litecoin is divided into 100 million parts called litoshi.
The second largest cryptocurrency by capitalization, ethereum, has three gradations of shares, which are named after famous developers:
1/1000 — Finney (Harold Thomas Finney II).
1/10000000 - Szabo (Nick Szabo).
1/1018 - Wei (Wei Dai).
But in the community, such terminology “took root” only in relation to Bitcoin. Numerical indicators are usually used to indicate fractional parts of other cryptocurrencies. For example, 0.1 ETH, 0.01 LTC, etc.
How to get satoshi
The process of purchasing Satoshi is no different from purchasing entire bitcoins or any other cryptocurrency. There are many ways to do this:
Crypto exchanges. For example, on Binance you can exchange Satoshi for another cryptocurrency or for fiat money. You can also store them in your personal account or perform various exchange transactions to earn money.
Online exchangers. They allow you to buy shares of Bitcoin for fiat money using bank cards or payment systems.
P2P exchanges. These are special services that allow you to carry out transactions for the purchase and sale of Satoshi directly between users.
Crypto wallets. There are special applications with the function of purchasing digital assets through fiat gateways.
Each user can choose a suitable and convenient option.
Earning satoshi
The very first way to earn Bitcoin is mining. Initially, it could be performed on a regular computer. Over time, the complexity of calculations has increased significantly, and now mining requires powerful computing hardware.
In 2012-2017, the so-called Bitcoin faucets were quite popular - special sites where you can earn Satoshi for completing simple tasks, for example, for watching ads, solving captchas, subscriptions, likes, etc. The reward for this is so insignificant, that it can only be measured in satoshi.
Nowadays, trading and investing, as well as their variations, remain a relevant way to make money. In addition, it is possible to receive Satoshi for completing various tasks as a freelancer or even a permanent employee.
Where to store satoshi
There are also many ways to store it:
Downloadable wallets. There are applications for PCs and mobile devices with different operating systems.
Web wallets. These include exchange accounts and separate online accounts for storing cryptocurrencies.
Hardware wallets. A small device similar to a flash drive that provides maximum security for the “cold” storage of Satoshi.
Few people think about how important the technical ability to divide Bitcoin into small parts is. But thanks also to this function, it still retains its status as a means of payment and an exchange asset. In addition, Satoshi allows beginners to evaluate the possibilities of cryptocurrency with minimal investment and almost no risks.
