A Little History…
Japanese native, Satoshi Nakamoto is considered to the man who created Bitcoin. Nobody has really seen Satoshi and it said that he could have been made up to protect the identity behind the mastermind(s). The first name Satoshi makes up the name for the smallest units of Bitcoin when measuring the price of other altcoins in BTC value.
The true value of 1 Satoshi is considered the smallest unit of bitcoin being 0.00000001 (that is seven 0’s before the one). That means as the price of Bitcoin increases, so will the smallest unit Bitcoin.
What makes a Satoshi?
As you may read this blog, the price of Bitcoin may be different, so let’s use an example being.
1 Bitcoin= $14,395 in USD
1 Kin= 5 Satoshi’s or .00000005
That will mean that for the price to be 5 Satoshi’s in USD the price is around $0.000718
So how did we come up with these CALCULATIONS?
Let’s look at the screen shot of Kin…
Now Let’s do some calculations on how we got to 5 Satoshi’s
If the Market cap is:
$542997512 and we divide it by the
Circulating Supply:
756,097,560,976
We get the price in USD Being:
$542997512/756,097,560,976= 0.000718158
Or rounded to as seen on coinmarketcapt.com= $0.000718
If we want to translate the price from USD to BTC it will give us the price in what we like to call Satoshi(s)
To get the Bitcoin price, take the price of the coin in USD being $0.000718 and we divide it by the price of BTC being, $14,395 and we get our answer being:
$0.000718/$14,395= 0.0000000499 or if we round, the price in BTC is 0.00000005
Therefore, the price of Kin is 0.00000005
We can do this method for any coin, and some coins do not even make up a full Satoshi. Let’s take a look of Paccoin
If you take the Market Cap and Divided by the Circulating Supply, you should get $0.0001196759 which seen on coinmarketcap.com being rounded to 0.000120.
Let’s take the price of Paccoin being 0.000120 and divide it by the price of BTC being $14,395 and we get, 0.0000000083 which is = to what is seen on coinmarketcap.com being 8.37e-09 BTC which means that it does not make a full Satoshi. Since it does not meet the smallest unit in BTC, cases like this, it is best to trade with a smaller value coin like Lite coin or Ethereum which will make a full unit. For example, lets get the price in LTC for Paccoin.
Let’s take the price of Paccoin being 0.000120 and divide it by the price of Dogecoin being $0.012986 we get the Price of Paccoin being 0.0092407208 of a Dogecoin.
In the future, since Bitcoin is speculated to increase, one Satoshi which is supposed to be the smallest unit, will not be small enough to scale the price in BTC for a lot coins. For example, if 1 BTC= $1,000,0000 that means 1 Satoshi (0.00000001) will equal a penny.
0.00000001* $1,000,000= 0.01
WOW!!!
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