104.4 Lesson - HighlyDivisible

Screen: HighlyDivisible

Headline: Special Characteristic

Reward: 3

Text: Old-fashioned fiat money can only be spent in amounts as small as one penny — or two decimal places for one US Dollar ($0.01).

On the other hand, Bitcoin can be divided 100,000,000 times over. This means that you could spend as little as ₿0.00000001. You will note the ""₿"" symbol, which is the Bitcoin equivalent of ""$"". Sometimes you will also see the use of BTC, instead of ₿.

By way of contrast, Bitcoin can handle very small payments — even those less than one US penny!

=================================================================

QUIZ

Question: What is the smallest amount of Bitcoin one can own, or use?

Answer: 0.00000001 BTC

Feedback: Yes. You can divide a bitcoin into 100,000,000 pieces. As you already know, the smallest unit of bitcoin — B0.00000001 — is known as a “sat”.

Correct: true

Answer: One whole bitcoin. It is not possible to use anything less.

Feedback: Wrong. Bitcoin is highly divisible. You can easily use a very small fraction of a bitcoin.

Correct: false

Answer: 0.01 BTC

Feedback: Incorrect. Although the smallest unit of US currency is one penny, a bitcoin is divisible by much more than 100x.

Correct: false