In the context of Bitcoin (BTC), divisibility refers to the smallest unit into which a single Bitcoin can be broken down. This property is crucial for a currency, as it needs to be exchanged in many different quantities to be useful for commerce.
A Bitcoin is divisible to the 8th decimal place, and the smallest unit of Bitcoin is known as a “Satoshi,” named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto. One Bitcoin is equivalent to 100,000,000 Satoshis. This high level of divisibility is important because it allows for precise transactions even as the value of a single Bitcoin rises.
So, when we say that Bitcoin is divisible, we mean that it can be split into smaller units, allowing for precise, flexible transactions.
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