A satoshi is the smallest unit or denomination of a Bitcoin. The name comes from the creator Satoshi Nakamoto. There are a total of 100 million satoshis within 1 Bitcoin. You can see how many satoshis (sats) a dollar can afford with this cool website: https://usdsat.com/ One satoshi is represented like this 0.00000001 bitcoin. The satoshi is the smallest unit of a Bitcoin.
Where new people get confused
Many people are confused by Bitcoin and think “it is too expensive” or “no one can afford Bitcoin”. This is absolutely false! The sad thing that happens is most newbies end up buying some shitcoin like XRP due to a “unit bias”. XRP or Doge look cheap on paper. Little do they know there are 100 billion XRP vs Bitcoin’s 21 million. We call this “unit bias” because there is this fallacy and belief that because a coin is appearing cheap on paper, you actually can create better returns. This is how most newbies get scammed, rug pulled, and lose a tremendous amount of money and end up broke. (Most of us made this mistake for you, so I am helping you right now 🙂 )
What is great about the total of 100 million satoshis is that anyone can buy a small fraction of a Bitcoin. You actually can buy as little as $5 on the Cash app or Swan Bitcoin. ONE COOL FACT: Considering the fact there are only 21 million Bitcoin if every single person on earth had an equal amount of Bitcoin they would own 0.00276288 Bitcoin. (This breaks down to 276,288 satoshis (as of today).
Important things to know
The fact that Bitcoin can be broken down into 100 million individual units allows for very small Bitcoin transactions to be possible. This is also what allows, literally anyone, to purchase and own Bitcoin.
I will conclude with this. You should check daily and see how many satoshis are in one dollar over time. Over the last 9 months, I have seen $1 buy 7,000 satoshi’s and today $1 can buy 2956 Satoshis or so. Over time, if you can’t tell, the dollar is getting weaker, and Bitcoin is growing in value. You may be asking why this is? One core reason is that dollars can be printed out of thin air, digitally. There is no limit to the dollars that our government can create. One thing you will remember is Bitcoin does have a hard cap, and there can never be more than 21 million in total. When you consider this scarcity, as well as the increasing demand over time, it makes sense why we are seeing Bitcoin’s value increase over time.
Well, now you know what a Satoshi is, what Bitcoin’s hard cap is, and that the unit bias of shitcoins is a tricky way to confuse new people to take their money! This is powerful knowledge most of us learned after 1-2 years. I hope you can take this knowledge and apply it today and make smarter decisions than a lot of us did early on buying unregulated securities and shitcoins/alt coins! Cheers!