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Units and Denominations of Bitcoin: A Guide
Bitcoin has reached new price levels over the past 12 months. But with high valuations, it might be difficult to use BTC without smaller units or denominations, which enables even small buyers/sellers to join the market. This is a digital currency that wants to replace traditional fiat currencies in the long run and should be set up in such a way that the wider public can use it in different circumstances.
There is still the question of whether Bitcoin will manage to break above $65,000, after reaching an all-time high close to that level in April 2021. Until then, this is still the most expensive cryptocurrency in the world, therefore knowing all its denominations will be useful for a very large audience.
Why are denominations needed?
Bitcoin
With so many different ways to use Bitcoin, denominations are important, especially for the average person without the financial means to buy a whole Bitcoin. With the price of Bitcoin now in the tens of thousands, not all people and institutions will be making transactions that high.
Additionally, a lot of developments are occurring in the online trading world, where brands such as easyMarkets are already allowing customers to deposit or withdraw Bitcoin, the same as they do with fiat currencies. A µBTC account is suitable for those having holdings in Bitcoin, wanting to get involved in the financial markets with a reputable brokerage.
To deposit or withdraw funds, regardless of the amount, knowing the main denominations will facilitate a smooth process, based on what each trader wants. Companies like easyMarkets have done their share of the work, allowing for greater security, regulatory compliance, negative balance protection, and tight trading costs, even when using a BTC-denominated account, so now traders need to know what are some of the most important Bitcoin units.
Main Bitcoin denominations
Bitcoin
The main Bitcoin denominations people should know are as follows:
- Satoshi (SAT)– set in homage to the Bitcoin creator, it is the smallest Bitcoin division, equal to 0.00000001 BTC
- Microbit (uBTC) – 0.000001 BTC
- Millibit (mBTC) – 0.001 BTC
- Centibit (cBTC) – 0.01 BTC
- Decibit (dBTC) – 0.1 BTC
- Bitcoin (BTC) – 1 BTC
- Decabit (daBTC) – 10 BTC
- Hectobit (hBTC) – 100 BTC
- Kilobit (kBTC) – 1000 BTC
- Megabit (MBTC) – 1000000 BTC
Thanks to so many different Bitcoin subunits, it is possible to conduct both very small or large transactions, depending on each situation. Despite the high market valuation, that does not put a roadblock in the face of using BTC for various purposes. With a broad range of wallets and Bitcoin apps available on the web, people don’t have to calculate how many BTC tokens they’ll need, given that can be done automatically.
According to its creator, the Stock-to-Flow metric is still valid for Bitcoin, which could transpire into higher valuations in the longer run. Faced with that prospect, having so many subunits can counteract any potential issues that might arise. Other altcoins had been rising as well, but BTC continues to lead the market, as it has the longest track record and benefits from large institutional investments.
Bitcoin
