Bits
Web3 / cryptocurrency types
A bit is a fractional unit of Bitcoin equal to one-millionth of a single BTC (0.000001 BTC), also referred to as a microbitcoin or μBTC. Created as a more practical unit for pricing small transactions and everyday commerce, bits make Bitcoin amounts easier to communicate when expressing values in fiat currency terms. For example, when Bitcoin trades at $40,000 per BTC, one bit is worth approximately $0.04, making it a convenient denomination for point-of-sale transactions and micro-transactions on the Lightning Network.
Example
A coffee shop might price a latte at 2,500 bits rather than 0.0025 BTC, making the number more intuitive for customers and reducing confusion around decimal places in pricing displays.
Why It Matters
Bits improve Bitcoin's usability as a medium of exchange by providing a human-friendly denomination that scales with adoption. Clear, accessible units reduce friction in commerce and help merchants communicate prices effectively to customers unfamiliar with cryptocurrency notation.
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