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What is a Satoshi (SATS) and why it is important?

Satoshi (SATS) is one hundred millionth of a bitcoin. The name Satoshi is derived from bitcoin (BTC) pseudonymous inventor Satoshi Nakamoto. Just like the U.S. dollar can be divided into cents and the pound into pence, the smallest available unit of bitcoin is a satoshi and 1 satoshi is equals to 0.00000001 BTC.

Satoshi is often referred to as SATS because it is always treated in plural that one will always have more than 1 satoshi.

1 Satoshi (SATS) = 0.00000001 BTC

The fact that Bitcoin is so divisible is actually crucial. Restricting it to just two decimal places would make this cryptocurrency impractical for everyday use, as 0.10 BTC can be worth thousands of dollars. Smaller fractions are vital when it comes to paying transaction fees, as well as when completing micropayments.

Many crypto experts and industry veteran’s have started suggesting that crypto traders and exchanges should switch to satoshi from bitcoin completely due to bitcoins excessive price rise. Mike Novogratz, CEO of Galaxy Digital, has taken to Twitter to make a case for Satoshis (SATS) to replace Bitcoin (BTC) on exchanges and in-fact leading crypto market price tracker website CoinMarketCap has started tracking SATS, possibly making the unit more mainstream. At the time of writing this, one satoshi is trading at $0.0005.

Source: CoinMarketCap

The billionaire calls on major crypto exchanges Coinbase, Binance, FTX, and Gemini to adopt the satoshi as the quote currency to make the largest crypto more attractive for the average users.

Mike Bucella, general partner at BlockTower, claims that exchanges adopting the smaller unit would be “the psychological stock split” that would encourage more people to get involved.   

According to billionaire Mark Cuban, the excitement that comes with owning the whole thing might explain the rise of meme cryptocurrency Dogecoin:      

It’s hard for someone with $100 to get excited about owning a fraction of BTC or ETH. It’s easy with doge.  

It may sound exciting but switching to SATS is not an easy task for exchanges. Kraken, a major crypto exchange, explains that factors such as user experience and discoverability have to be taken into account. Kraken CEO Jesse Powell tells that we need to think through the UX, discoverability etc. as 99% of new users coming in will be looking for bitcoin/BTC and have no idea what a satoshi/SATS is and they don’t want to confuse them.

So far only Square’s Cash App has added SATS back in December, but no other major exchange has made such a move yet.

Also Read – 10 must have crypto tools for every cryptocurrency trader in 2021

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