Today the crypto exchange Bitfinex launched the so-called “SAT mode”.
Actually, it has launched two new modes, the BIT mode and the SAT mode.
One satoshi is the smallest unit that on-chain bitcoin can be divided into, and it corresponds to one hundred millionth of a bitcoin. So 1 BTC = 100,000,000 SAT.
By activating SAT mode on Bitfinex it will be possible to use satoshi as the unit of measure (SAT) instead of bitcoin (BTC), thus making it easier for those who use small amounts of money, as one BTC is now equivalent to about $40,000.
In addition to SAT mode, the exchange has also activated BIT (microbitcoin) mode, with one BIT being equivalent to one-millionth of a bitcoin, or 100 satoshi. So 1 BTC = 1,000,000 BIT.
Activating BIT mode will use one-millionth of a bitcoin as the unit of measure, instead of BTC, which is currently about $0.04.
How SAT and BIT modes work on Bitfinex
To enable SAT or BIT mode users need to go to their account settings, in the interface section, where they will find the layout options: BTC, meaning bitcoin, SAT (1/100M BTC), meaning satoshi, and BIT (1/1M BTC), meaning microbitcoin.
Bitfinex CTO Paolo Ardoino said:
“The launch of SAT mode in satoshi is appropriate for an exchange that is a pioneer in the crypto industry and that never forgets the ethos from which Bitcoin was originally invented. This will facilitate bitcoin microtransactions, allowing users who may be dabbling with their first bitcoin purchases to become further familiar with this amazing technology.”
The name “satoshi ” given to the smallest fraction of BTC was obviously chosen to honour the creator of Bitcoin, Satoshi Nakamoto.
The fact is that the value of a single BTC is now so high that very few people operate with at least 1 bitcoin. Most people actually only trade with fractions of a bitcoin, and for example the term 0.000001 BTC for a microbitcoin is far less convenient than 1 BIT, just as 0.00000001 is far more inconvenient than 1 SAT.
There is also millibitcoin (mBTC), equal to one-thousandth of a bitcoin, but it is only used by rare platforms or wallets, such as Electrum, and not by Bitfinex.
So if today 1 bitcoin (BTC) is worth about $40,000, 1 millibitcoin (mBTC) is worth about $40, while 1 microbitcoin (BIT) is worth $0.04 or four cents. 1 satoshi (SAT) is worth about $0.0004.
The microbitcoin (BIT) is certainly the most convenient unit to use at the moment.
The post Bitfinex launches SAT (satoshi) mode appeared first on The Cryptonomist.
