Just like a penny is the smallest piece of a dollar, a Satoshi (Sat) is the smallest piece of a Bitcoin, named in honor of its mysterious creator, Satoshi Nakamoto. It allows you to buy, sell, and use Bitcoin in tiny, affordable amounts, making it practical for everyday use and accessible to everyone.

The absolute smallest unit of a Bitcoin is called a Satoshi (often shortened to "Sats"). This unit is named after Satoshi Nakamoto, the anonymous and pseudonymous creator(s) of Bitcoin, as a tribute to their groundbreaking work.

Here's the key:

One Bitcoin (1 BTC) is equal to 100,000,000 (one hundred million) Satoshis.

So, if you have 1 Bitcoin, you essentially have 100,000,000 "Sats."

Why "Sats" ...

Bitcoin's Value: Bitcoin can be quite expensive. Sats make it possible to buy, sell, and send tiny fractions of Bitcoin, which is crucial as Bitcoin's price fluctuates.
Affordability: You don't need to buy a whole Bitcoin to own some. You can buy just a few thousand or a few million sats, making Bitcoin accessible to everyone, regardless of their budget. This means you can participate in the Bitcoin economy even with a small amount of money.
Microtransactions: As Bitcoin and networks evolve, sats are becoming the standard unit for very small payments, like tipping content creators, paying for online articles, or even buying a coffee. It's much easier to say "send me 5,000 Sats" than "send me 0.00005 BTC."
Tribute to the Creator: The unit is a direct homage to Satoshi Nakamoto, recognizing their foundational role in creating this revolutionary digital currency.

https://www.dbm.academy/faq for more blockchain vocabulary.

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