Breaking down a bitcoin (bits and satoshis)
This is where things start to get really interesting :)
Understanding the make-up of a bitcoin will help you to see just how valuable the thousands of bits that you can get for free TODAY really could be in the future.
Each bitcoin can be divided down into 8 decimal places - so each bitcoin contains 100 million units, each called a 'Satoshi', (named after the mysterious founder of bitcoin Satoshi Nakamoto) - here 1 satoshi is represented:
0.00000001
However, more recently the unit of "bits" has been adopted.
There are 1 million bits in every bitcoin - this takes the decimal placing to only 6 spaces out of the available 8, leaving 2x 00s left over on the end, which will be used as decimals. Here one bit is represented:
0.00000100
The measurement in bits has been created with e-commerce in mind. We are simply used to thinking in whole numbers, so rather than thinking of the price of something being 0.06 of a bitcoin, we write this price as 60,000 bits.
Looking at bitcoin like this makes it much easier and more realistic to see how it will be used and how it really can go mainstream right! ;)
And right now, you can still get THOUSANDS of bits for free every day!
