What is a Satoshi? Bitcoin and its 8 decimal places

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One Bitcoin has 8 decimal places, the smallest fraction is called a Satoshi. The name derives from the mystical entity to whom the creation of Bitcoin is attributed: Satoshi Nakamoto

Therefore, 1 Bitcoin is omschrijving to 100.000.000 (100 million) Satoshi. The photo below illustrates this relationship:

Thesis 8 decimal places enable access to Bitcoin without having to buy a entire unit.

Let’s take the Brazil spil an example: presently the price of 1 Bitcoin is about R$ 14.000, but it is possible to acquire R$ 100 te Bitcoin. For your R$ 100 would would get 0,00714286 Bitcoin, or 714.286 Satoshi.

When Bitcoin very first emerged ter 2009, nobody imagined that one Satoshi would everzwijn have any real value.

Ten,000 Bitcoin =Two Large Pizzas

One of the very first, and surely the most famous, transactions involving Bitcoins wasgoed the exchange for Ten.000 Bitcoins for Two large pizzas which had a market value of USD 25. This waterput a price of 1 Bitcoin at USD 0,0025.

Since then the price of Bitcoin enhanced significantly and this year a single coin reached an all time high of almost USD Five.000. Presently it is trading at around USD Four.170.

Check this twitter account to see the value of that pizza ter real time.

Venezuela and the Bolivar

Venezuela has bot going through severe economic difficulties te the last few years, hyperinflation reached astounding 800% te December 2016. Spil a consequence the Venezuelan Bolivar (local currency) has bot losing value on a daily ondergrond.

To buy everyday goods you need, literally, bags of money:

Presently, te Venezuela, the price of 1 Bitcoin is overheen 100 million Bolivares, spil can be seen on LocalBitcoins:

Given the increase ter the value of Bitcoin and the severe devaluation of the Bolivar, and taking into account that there are 100 million Satoshi te a Bitcoin. 1 Bolivar is now worth less than 1 Satoshi.

Venezuela is an extreme case, but should Bitcoin proceed to increase te value and local fiat currencies proceed to lose value, other currencies may achieve parity to 1 Satoshi.

With the help of Winkdex (for historic bitcoin prices) and X-Rates (for historic Brazilian Real to US Dollar prices), I waterput together this table to vertoning the Satoshi exchange rate ter Three different dates.

The question remains: will one day the Brazilian Real reach parity to a Satoshi? Unlikely, but not unlikely, spil a Bitcoin would need to be worth 1oo million Reais for that to toebijten.

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