Converting Satoshi to USD is one of the more frequently executed fiats to cryptocurrency conversions, and it’s the reason why USD-BTC is likely the most common pair you will find on services which enable such transactions.
There are a lot of ways you can exchange your Satoshi for United States Dollars, and a lot of factors to consider with regards to when and how. Read on to find out which may be best for you, and exactly how much is 1 Satoshi.
What is Satoshi?
Satoshi is a measure of value and is the lowest possible denomination of currency available about the Bitcoin (BTC) ecosystem. One Satoshi represents a hundredth of one-millionth of a single Bitcoin or 0.00000001 BTC.
The unit got named after the pseudonym associated with Satoshi Nakamoto, the enigmatic creator (or creators) of the Bitcoin network and its whitepaper ‘Bitcoin: A Peer-to-Peer Electronic Cash System’.
Like almost all cryptocurrencies Bitcoin fundamentally derives its value from token supply and investor demand. Supply and demand can get influenced by a variety of factors, including speculative interest and trends, as well as network developments. Satoshi to USD: What Influences Value
Here are a few examples of news that influences investor confidence:
- Good or bad news can reduce confidence in a cryptocurrency like Bitcoin. Think institutional divestment, the collapse or failure of significant projects and businesses, exchange or network hacks, fraud/scams, and more
- Mass sell-offs from high volume or high profile investors. It can get identified by large amounts or values of transactions coming from one or more linked accounts/addresses.
- Legislative actions, including lawsuits from government authorities. Mainly when instigated against high profile organizations (Libra Association, Telegram, etc.).
When it comes to network developments, we recently saw an event occur which had a direct impact on the supply and demand of Bitcoin: the 2020 halving. A halving is when the number of tokens mined per-block (and thus, miner block rewards) are reduced by 50% to combat token and transaction fee inflation.
Bitcoin dropped in value before the halving (coinciding with system downtime at significant exchanges like Coinbase and Kraken) before the halving, which went against the expectations of many. It has recovered since, but not entirely.
Another influencing factor on satoshi-to-USD is the value of USD. The US Dollar (and most fiat currencies in general) has suffered recently as a result of the economic effects resulting from the global COVID-19 pandemic. Doubt in fiat increases interest in alternative investments, such as cryptocurrency.
Exchanges: How To Convert Satoshi to USD?
There are a variety of…