A satoshi is the smallest unit of BitcoinBitcoinThe first and largest cryptocurrency: a digital currency that no single party controls, with a fixed limit of 21 million coins.. One bitcoin is divided into 100 million satoshis, much as the króna was once divided into 100 aurar. The unit is named after Satoshi NakamotoSatoshi NakamotoThe pseudonym of Bitcoin's creator, who published the Bitcoin whitepaper in 2008, launched the network in 2009 and disappeared soon after., the creator of Bitcoin. People often call them "sats" for short.
Why do satoshis matter?
Few people buy a whole bitcoin. Most buy a fraction of one, and it is often easier to talk about satoshis than a long string of zeros.
For example, if one bitcoin costs ISK 10 million, one satoshi is worth ISK 0.10. For ISK 10,000 you would get 100,000 satoshis, or 0.001 bitcoin.
Where do you see satoshis?
- Fees on the Bitcoin network are quoted in satoshis per virtual byte (sat/vB), because the network feeNetwork feeA fee paid to a crypto network, not to a bank or company, for including your transaction in a block. depends on the size of the transaction, not the amount.
- Small payments on the Lightning NetworkLightning NetworkA payment network on top of Bitcoin that makes bitcoin payments almost instant and cheap, without recording each payment on the blockchain. are usually priced in satoshis.
- Wallets and apps often let you show your balance in sats instead of bitcoin.
Everything in the Bitcoin system is ultimately counted in whole satoshis. On the blockchain itself, you can't send less than one satoshi.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.