Bitcoin hasn’t even been around for ten years yet, and so the whole concept of the digital currency is still a new one. It’s actually quite complicated to understand, because Bitcoin is broken up into several different units- in a way, similar to the way British money has pence and pounds, and American money has cents and dollars, but also quite different too. Confused? Don’t panic! Here’s the easy guide to understanding the various units of Bitcoin.
There are three major Bitcoin denominations to know about. These are as follows:
Bitcoin (BTC)- This is one full Bitcoin.
MilliBitcoin (mBTC)- One thousandth of a Bitcoin.
MicroBitcoin (uBTC)- One millionth of a Bitcoin.
It’s hard to give each denomination a set value because the value of Bitcoin changes on almost a daily basis. For example, a few years ago one whole Bitcoin was worth a couple of hundred pounds. Today, one whole Bitcoin is worth around £1,000. Yep, bitcoin is worth a lot! Currently, one MilliBitcoin is worth about 15p and is the most common denomination used when making purchases with Bitcoins. uBTC is more often than not too small of a denomination to use for anything, and it’s very rare for anyone to have one whole Bitcoin as most people can’t afford it, so mBTC is the denomination most commonly used.
It is worth remembering that at the moment, Bitcoin can be broken down to eight decimal places. However, this may change with time. There was only ever 21 million Bitcoins created, and no more will ever be made. This means that the more Bitcoins that are released to the public, the more they need to be broken down and the higher their value needs to become to keep the currency in circulation.