What is a satoshi?
Quick Answer
A satoshi (sat) is the smallest unit of Bitcoin — one hundred millionth of a Bitcoin (0.00000001 BTC). Named after Bitcoin's creator Satoshi Nakamoto.
TL;DR
1 satoshi = 0.00000001 BTC. At $100K per BTC, 1 sat = $0.001. 'Stacking sats' = accumulating Bitcoin regularly.
Key Takeaways
- 11 Bitcoin = 100,000,000 satoshis
- 2At $107,000 per BTC, 1 satoshi = ~$0.001 (one-tenth of a cent)
- 3'Stacking sats' is the community term for regular Bitcoin accumulation
- 4The Lightning Network transacts in satoshis for micropayments
- 5Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto
Full Explanation
A satoshi is Bitcoin's base unit, analogous to the cent in US dollars — except there are 100 million satoshis in a Bitcoin versus 100 cents in a dollar.
The satoshi denomination becomes increasingly important as Bitcoin's price rises. At $107,000 per Bitcoin, one satoshi equals approximately $0.00107 — about one-tenth of a cent. This makes satoshis practical for Lightning Network micropayments: tipping a content creator 1,000 sats costs about $1.07.
In Bitcoin culture, 'stacking sats' refers to the practice of regularly accumulating small amounts of Bitcoin — the crypto equivalent of 'saving.' The phrase captures the DCA philosophy: it doesn't matter if you can't buy a whole Bitcoin; accumulating satoshis over time builds meaningful wealth.
For practical use: when sending Bitcoin, wallet apps often display balances in either BTC (e.g., 0.00093457 BTC) or sats (e.g., 93,457 sats). Both represent the same thing. Many newer wallets default to sats because the numbers are more intuitive.