The Divisibility of Bitcoin
The four primary characteristics of money, commodity, fiat or cryptocurrency are: (1) Durability, (2) Divisibility, (3) Transportability, and (4) Noncounterfeitability.
In order to adopt and encourage everyone to use and buy Bitcoin, and then to replace general currency, the segmentation of Bitcoin is very important. Bitcoin can be divided into units as small as 0.00000001 BTC. In the future, if the situation requires, the segmentation of Bitcoin can be increased to 100 billion smaller units or even more. This is because the Bitcoin protocol and its related software can be modified to handle smaller units.
Severability is one of the characteristics of any form of currency, commodity, legal currency or cryptocurrency, which makes things available or makes money have tradable value. In order to be able to exchange goods of different values, money must be divided into smaller units. In order for Bitcoin to become a currency used in daily life, its usefulness must be promoted, so the divisibility of Bitcoin is very important.
Can I buy less than one Bitcoin?
Just as 1 Euro can be broken down into 100 Euro cents, Bitcoin can also be broken down into smaller units. As the value of one bitcoin increases, it is reasonable to buy only a small portion of the virtual currency at a time instead of the entire bitcoin. Bitcoin can be divided into units as small as 0.00000001 BTC, which makes Bitcoin very suitable for small payments.
What is the smallest unit of Bitcoin called?
The minimum supported by the Bitcoin network is Satoshi, named after Satoshi Nakamoto, the creator of Bitcoin. One bitcoin is one hundred million (100,000,000) satoshis. In the future, if necessary, Bitcoin can be divided into 100 billion units or even more, because the Bitcoin protocol and related software can be modified to handle smaller units.
Another common unit is the bit (bit) or microbi (μBTC), which is one millionth of Bitcoin (0.000 001). Like most legal currencies, bits have a precision of two decimal places. Due to the limited network accuracy, you can send 1.23 bits but not 1.234 bits.
Bitcoin offers a simple and stylish solution: infinite divisibility. Bitcoins can be divided up and trade into as small of pieces as one wants, so no matter how valuable Bitcoins become, one can trade them in practical quantities.