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Bits Meaning

In the context of Bitcoin, a bit is a sub‑unit equal to one millionth of a bitcoin (0.000001 BTC). Each bit is equivalent to 100 satoshis, making the denomination useful for pricing goods and services when the value of a whole bitcoin is high. For example, if one bitcoin is worth USD 50,000, one bit would be worth USD 0.05.

Using bits helps reduce the number of decimal places displayed and aligns with familiar financial conventions that typically use two decimal places. Exchanges and wallet providers may allow users to view balances in bits, satoshis or bitcoins depending on preference.

As Bitcoin adoption grows, denominating amounts in bits or satoshis makes everyday transactions more intuitive. It highlights the cryptocurrency’s divisibility and facilitates micropayments, tips and small purchases without resorting to awkward decimal fractions.

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