DOTTIE PAUL

DOTTIE PAUL

What is the lowest amount of money you can invest in Bitcoin?

BAM

KEY HIGHLIGHTS

  • One bitcoin is divisible into 100 million satoshis.
  • Satoshis give Bitcoin great divisibility and flexibility.
  • Layers on top of Bitcoin can further subdivide satoshis, giving Bitcoin potentially infinite divisibility.

What Is a Satoshi?

A satoshi is the atomic unit of bitcoin; each bitcoin is divisible into 100,000,000 satoshis, which are often abbreviated to sat(s). The satoshi is named in honor of Bitcoin’s founder, Satoshi Nakamoto.

On the Bitcoin blockchain and in its source code, all amounts of bitcoin are denominated in satoshis. These amounts are only converted to bitcoin for familiarity and readability.

https://river.com/learn/how-many-satoshis-are-in-a-bitcoin/

BAM

As you can see Bitcoin is very divisible. 

You don’t have to buy a whole Bitcoin and as Bitcoin is often selling for tens of thousands of dollars it can be quite daunting if one does not recognize that they can buy almost any denomination of Bitcoin. 

A common trap people fall into is called Unit Bias. Unit bias can mislead a person into buying a far inferior Alt coin under the guise .

As written in Bitcoin Magazine:

 Unit bias?, “the concept that buyers are more enticed to buy a whole ?unit? of a given currency instead of a fractional quantity. Many people think they need to buy a whole bitcoin. They don’t know that the smallest unit of bitcoin is not 1 BTC; it’s 1 “satoshi” (“sat” for short).

We know:

100 cents = 1 dollar

We can similarly say:

100,000,000 sats = 1 BTC

Buying 0.00034500 BTC seems like a paltry, pointless amount because of unit bias. To de-bias the unit bias, simply focus on the smaller unit. Denominating it as buying 34,500 sats is much more enticing, even though this is the exact same amount of bitcoin! People should first aspire to become a sat millionaire (0.01 BTC) and then set their sights on maybe someday accumulating enough sats until they hold a whole bitcoin. There’s no need to view your holdings in tiny fractions of BTC. Just stack sats! –  for Bitcoin Magazine

https://www.nasdaq.com/articles/a-look-at-bitcoin-and-biases%3A-price-2021-10-01

2 Comments

  • Asif

    February 12, 2024 - 7:10 pm

    How

  • plbxDgIdfqzQtaM

    February 19, 2024 - 1:58 pm

    rmAgBbxkojCNf

Leave A Comment