As a pure digital asset, BTC tokens exist as a unique mathematical code that confers ownership.
One BTC token is actually an encoded key that exists in a virtual strongbox. The maintaining of all the codes, those digital signatory machinations – it’s all executed by the network of computational power providers, incentivized by rewards. The hash power contributors are said to be mining for BTC, as they get paid out in BTCs which for the most part are sold. It’s what miners do, why they mine. Although while we’re on the subject of mining it should be pointed out that network node maintenance/hash power steering is less like precious metals extraction and more akin to a perpetually administered math tournament.
As a blockchain-protocol abetted asset, BTC exists in the biggest virtual hotel guest book ever bound – a distributed ledger – on which all transactions are recorded for all to see.
Mining activity spits out a limited number of tokens – every hour – each with a unique digital identity. Ultimately, when it comes down to it, each BTC is made up of an elaborate string of numbers and letters. Underpinning all of those precious encryptions, however, is some shared heavy lifting done by a complex, working-in-harmony musculature system of servers, programmers, miners, holders and investors.
The smallest subdivision of BTC that can be sent or owned is called a satoshi. That’s a nod to the crypto’s pseudonymous creator.
One bitcoin contains 100 million satoshis.
When someone tweets “#Stacking sats!” that’s commonly shorthand for “accumulating BTC” but what they also mean is this: “0.00000001 BTC + 0.00000001 BTC = 0.00000002 BTCs” and so on.
The notion of small investors piling up satoshis – a pragmatic way of facilitating ownership of BTC as its price began to tower out of reach – became a rallying cry of sorts over the past couple of years, with enthusiasts encouraged to keep making reoccurring purchases in whatever denomination one could afford.