Bitcoin Units And Denominations: Satoshi, Finney, MicroBit, MilliBit, CentiBit, DeciBit And Bitcoin
Bitcoin (BTC) has experienced an incredible bull run in 2017 that drove the prices of the famous virtual currency to record highs. Back in December 2017, one Bitcoin could be bought for $20,000 dollars.
After a bear market since that time, Bitcoin is currently worth $6,500 dollars. If Bitcoin wants to be used as a day-to-day currency, new denominations will have to be used. Nowadays, going to buy a small product or a coffee in a shop and pay with Bitcoin would be quite difficult.
However, Bitcoin can be divided into smaller units and denominations that would make it easier for Bitcoin users to spend and use it.
- Bitcoin = 1 BTC
- DeciBit = 0.1 BTC
- CentiBit = 0.01 BTC
- MilliBit = 0.001 BTC
- MicroBit = 0.000001 BTC
- Finney = 0.0000001 BTC
- Satoshi = 0.00000001 BTC
We can see that the smallest Bitcoin unit is known as Satoshi. It is known in this way because of Bitcoin’s creator Satoshi Nakamoto. In the future, the community could be so big, and cryptos could expand so much, that it would be worth to use smaller denominations. In the future, each Satoshi could be equal to pennies and help users purchase goods or services.
It is important to remember that Bitcoin has a fixed supply of 21 million units. The US dollar, for example has a supply of 10 trillion units. Fiat currencies can be printed, but Bitcoin cannot be created out of thin air. Once we reach 21 million Bitcoin there would not be more BTC ever printed. However, it is possible to use smaller denominations of Bitcoin, something that would let us manage the currency in a better and easier way.
The other curious denomination is the so called ‘Finney’ since it is related to Hal Finney. Mr. Finney was one of the first individuals to work with Bitcoin and Satoshi Nakamoto, and several enthusiasts said that Finney is the real Satoshi. Nonetheless, he has several times denied these claims.
In different social networks, the community has been debating about Bitcoin and how to introduce it to other people. Asking a friend whether he knows Bitcoin and mentioning that it costs more than $6,000 it might be quite shocking. Instead, it could be easier to use the term emBit (milliBit) to make purchases.