Continuing on with my Cryptocurrency journey, I have been learning the new terms and conditions of Crypto currencies. One of the new terms is Satoshis. This new term is a reflection of the inventor of bitcoin and his name is Satoshi Nakamoto. So this digital currency, which represents one hundred millionth of a Bitcoin is called a Satoshi.
The reason given for using such a small unit of currency is that this makes any transaction easier to conduct and will make extremely small transactions readable. These denominations are also known as SATS. Just ro keep things simple, a SAT is comparable to what a penny is to a dollar. They are both units in a monetary system. 1 bitcoin equals 100,000,000 SATS and 100 cents equals a dollar.
You may be wondering how the price of one bitcoin is calculated to be worth so many dollars. By the way, at this time, one Bitcoin is worth $ 63,396,20. The price has been quite volatile lately also. Most investors can’t plunk down that many dollars for bitcoin and that is why there is so much mining going on. The price of digital currencies is based on supply and demand , just like paper currencies. If Mr. Biden wants to sell his bitcoin to Mr. McConnell for 10 dollars , but Mr. McConnell will only pay 9 dollars, the deal won’t happen. However if they can agree on a price of say, 9.25 , then we have a deal. This should sound familiar to you.
If you are interested in getting bitcoin as an investment, you can buy the bitcoin outright or you can mine it. There are many programs you can use to mine bitcoin and other crypto currencies available. I like to think of myself as a miner for the heart of Crypto. If you would like me to review some programs for mining , let me know and I will do a blog post on that subject. Have a great Day!