Bits Definition

A bit is a subdivision of bitcoin. There are 1,000,000 bits in 1 BTC. Because 1 BTC is also 100,000,000 satoshis, one bit equals 100 satoshis. You will sometimes see bits treated as the same thing as microbitcoins, written as µBTC or uBTC. In everyday terms, that makes prices easier to read and share without long strings of zeros. In computing more broadly, a bit is the tiny 0-or-1 building block of all digital data.

Why people use bits

Bits make values human friendly. Most accounting and payment software sticks to two decimal places, so writing 99.99 bits plays nicely with bookkeeping, invoices, and point-of-sale systems. Using bits also avoids tiny BTC decimals when tipping, paying for a coffee, or sending micro-payments. 

Where the idea came from

Using bits as a common unit grew out of a community proposal that suggested splitting each bitcoin into one million units and calling them bits. The goal was a denomination that felt intuitive as prices changed over time. 

Relation to satoshis and other units

• 1 BTC = 1,000,000 bits
• 1 BTC = 100,000,000 satoshis
• therefore 1 bit = 100 satoshis
• 1,000 bits = 0.001 BTC

This mapping lets wallets and exchanges show small payments without awkward decimals. 

Wallet display and small payments

Some wallet interfaces prefer bits because they are quick to read and reduce errors when entering amounts. Community discussions also point out that very tiny on-chain outputs can run into dust limits, while bits offer a practical middle ground for everyday pricing.