Whether it is traditional money or digital currency, divisibility is one of the essential factors. Divisibility gives value to money. For exchanged goods, money needs to be broken into small units. The smaller units make it possible for bitcoin to be used for practical purposes. Through this informative article, we will try to know whether bitcoin is divisible or not. For additional knowledge, you can click the image below.
Buying less than one bitcoin: what is the possibility?
If you believe that bitcoin is too costly, so you want to purchase only a fraction, it is possible. Like a Euro bill is changeable into 100-euro cents, you can also divide bitcoin into different small units.
When the value of bitcoin increases, you will need to get a fraction of bitcoin instead of purchasing all bitcoin at once. Bitcoin can be divided into small units like 0.00000001 BTC when it comes to bitcoin. Thus, it becomes easier for people to make micropayments with ease.
What is the smallest unit to exist?
The smallest unit to exist is the Satoshi. The name is given after the bitcoin inventor Satoshi Nakamoto; you can convert a single bitcoin to one-hundred million Satoshi. As per experts, in the future, the divisibility can increase up to 100 billion parts and, if needed, even more.
Another small unit of bitcoin is microbitcoin. A microbitcoin is one-millionth part of a bitcoin. Just like other fiat currencies, bitcoin has a two-decimal precision. Because of the limited accuracy of the network, you will be able to send 1.23 bitcoins instead of 1.234 bitcoins.
The future of divisibility
The mining of the last bitcoin will happen in 2140, and till then, the bitcoin will be divisible to 21 million. It may seem like a small number of units, given that bitcoin can become a mainstream currency. However, almost all bitcoin enthusiasts have questioned whether the 21 million bitcoins will be enough to make hundreds and millions of transactions or not.
Is there enough bitcoin?
Most people know about the limited supply of bitcoin. This question becomes even more critical due to the growth in the adoption of bitcoin. The population of the world is increasing at a faster pace. Thus, people want to know whether there will be enough bitcoin to fulfil the needs of 16 billion people or not. As per many projections, even when 10% of the population demand bitcoin, the crypto world will need close to two billion bitcoin wallets. This number is 100% more than the number of bitcoins already in circulation.
The power lies in indivisibility.
As a potential bitcoin investor, you need to know that bitcoin protocols are created so that they will be able to handle a large number of transactions. The main reason behind this is the divisibility criteria of the currency.
Divisibility is an essential feature of any currency, whether a commodity, crypto or fiat currency. The other factors and features include durability, the ability of non-counterfeit, and transportability. The divisibility feature is essential as it ensures that money can change down to small units. Thus, it is also possible that you can easily use bitcoin to make payments of goods of different values.
How many units are available?
Before you start getting fearful of bitcoin, you need to know that almost two quadrillion units of bitcoin units are available. A single bitcoin can be easily divided up to eight decimal points. We all know that the smallest unit is named Satoshi. A Satoshi is the hundredth part of a millionth bitcoin. Thus, you can break down a single bitcoin into 100,000,000 Satoshis.
The circulation of bitcoin has a limit of 21 million. When you convert 21 million bitcoins in Satoshi, you will get more than two quadrillion of bitcoin units. As per experts and reports, every citizen will own 131250 Satoshis by 2140.
But, with the rise in population, the demand will rise. But you don’t need to worry as bitcoin protocols and the software can handle even smaller units and divisions of bitcoin. Thus, there will be enough bitcoin splitting so that anyone who needs it can have a piece of bitcoin.