Units

Units of Bitcoin most commonly are expressed in decimal exponents such as BTC (“bitcoins”), mBTC (“millibitcoins”) and μBTC (“bits”).

Description

Bitcoin Explained Episode 8: Units of Bitcoin

Bitcoin has a metric system of denominations used as units of Bitcoin. The main goal of the bitcoin currency, abbreviated BTC, is to make it harmonious to worldwide currencies. Bitcoin tries to accomplish this function by being divisible down to the 8 decimal place. This is an adequate thing, given the actual high price of 1 Bitcoin theses days. The smallest denomination in a Bitcoin is called ‘Satoshi’, in homage to its creator. Below is a list of the named denominations and their value in BTC^[1].

Decimal metric units

The BTC unit was chosen to represent a value of 10⁸ so as to give sub-unit precision rather than large whole numbers. Mirroring the standard Le Système International d’Unités, this allows for divisions of 1/10th (deci-bitcoins, dBTC), 1/100th (centi-bitcoins, cBTC), 1/1 000th (milli-bitcoins, mBTC), and 1/1 000 000 (micro-bitcoins, μBTC).

Bits

The term “bit” is a popular new unit being used to represent smaller Bitcoin amounts. Due to the rising value of 1 bitcoin (currently 1 BTC = $450 USD), many prices must be displayed in fractional bitcoin amounts. For example, a bottle of beer might be priced at .0085 BTC. These fractional numeric values can be confusing and difficult for many people to read. The bit sub-unit (equal to 0.000001 BTC) is considered by many to be a more memorable and intuitive way of displaying Bitcoin amounts; the aforementioned beer would cost 8500 bits.

Originally proposed on Bitcoin the sub-reddit, and now being embraced by the payment processor Bitpay, the bit sub-unit offers the following advantages:

More compatible with existing financial software that can only handle 2 decimal places. For example: using a figures like 49.99 bits instead of .00004999 bitcoins.
Figures would remain easily readable in the event of an extreme rise in Bitcoin’s exchange rate: if 1 Bitcoin was worth $100,000, then a $4.99 beer would cost 49.90 bits.
Bit is an easier to remember unit when compared to other longer unit names and acronyms: 100 bits instead of 100 microbitcoins/100 μBTC/1 millibitcoin/1 mBTC).

However, there are some disadvantages to the bits nomenclature:

Can be confused with the binary unit “bit” in computing, or the old-fashioned US currency unit of “bit”, which is 12.5 cents.
Unit prefix terms such as micro-, milli-, and centi- are more familiar to those who use the metric measurement system (i.e. everyone except Americans)^[2].

Table of all units

This table is intended to include all well-defined units of bitcoin value, including less common and niche units.

Unit	Abbreviation	Decimal (BTC)	Alternate names	Info
Algorithmic maximum		20,999,999.9769		Calculation
tam-bitcoin		2,814,749.76710656		1,0000,0000 tonal
mega-bitcoin	MBTC	1,000,000		Rare in context
kilo-bitcoin	kBTC	1,000		Rare in context
hecto-bitcoin	hBTC	100		Rare^[3]
Initial block subsidy		50		Until block 210000
bong-bitcoin	ᵇTBC	42.94967296		1,0000 tonal
Current block subsidy		12.5	block	As of block 420000
deca-bitcoin	daBTC	10		Rare
mill-bitcoin	ᵐTBC	2.68435456		1000 tonal
bitcoin	BTC	1	coin	SI base unit
san-bitcoin	ˢTBC	0.16777216		100 tonal
deci-bitcoin	dBTC	0.1		Rare
ton-bitcoin	ᵗTBC	0.01048576		10 tonal
centi-bitcoin	cBTC	0.01	bitcent	Formerly frequent Bitcents were frequent until the November 2013 bubble
milli-bitcoin	mBTC	0.001	millibit, millie	Occasional
bitcoin	TBC	0.00065536		Tonal base unit
bitcoin-ton	TBCᵗ	0.00004096		0.1 tonal
bitcoin-san	TBCˢ	0.00000256		0.01 tonal
micro-bitcoin	μBTC	0.000001	bit	Frequent
bitcoin-mill	TBCᵐ	0.00000016		0.001 tonal
		0.0000001	finney^[4]
bitcoin-bong	TBCᵇ	0.00000001		0.0001 tonal
	sat	0.00000001	Satoshi	Blockchain value
	msat	0.00000000001	millisatoshi^[5]	Payment channel value

External links

References

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