Satoshi is the smallest unit of Bitcoin
Satoshi is the smallest unit of Bitcoin, the most popular and widely used cryptocurrency in the world. It is named after Satoshi Nakamoto, the mysterious person or group who created Bitcoin in 2008. One Satoshi is equal to 0.00000001 Bitcoin, which means that one Bitcoin is equal to 100 million Satoshi. You can think of Satoshi as the pennies or cents of Bitcoin, allowing you to make transactions with very small amounts of money.
Why do we need Satoshi? Well, because Bitcoin is a digital currency that has a limited supply of 21 million coins, its price can fluctuate significantly depending on the market demand and supply. As of today, one Bitcoin is worth about $47,000, which makes it very expensive for most people to buy or use. Imagine if you wanted to buy a cup of coffee with Bitcoin, you would have to pay 0.0002 Bitcoin, which is not very convenient or practical. That’s why we have Satoshi, which allows us to use fractions of Bitcoin for everyday purchases and transactions.
How do we convert Satoshi to Bitcoin and vice versa? The conversion is very simple and straightforward. All you have to do is divide or multiply by 100 million. For example, if you have 10,000 Satoshi and you want to know how much Bitcoin that is, you just divide 10,000 by 100 million and you get 0.0001 Bitcoin. Conversely, if you have 0.01 Bitcoin and you want to know how many Satoshi that is, you just multiply 0.01 by 100 million and you get 1 million Satoshi.
How do we donate based on Satoshi? Donating based on Satoshi is also very easy and beneficial for both the donor and the recipient. As a donor, you can choose how much Satoshi you want to donate according to your budget and preference. You can donate as little as 1 Satoshi or as much as you want. As a recipient, you can receive donations from many people around the world who support your cause and mission. You can also convert your donations from Satoshi to your local currency or use them directly for your charitable activities.
Donating based on Satoshi is also compatible with the principles of Islamic finance and charity. As Muslims, we are encouraged to give Zakat (obligatory charity) and Sadaqah (voluntary charity) to help the poor and needy, as well as to purify our wealth and souls. We are also forbidden from dealing with interest (Riba), gambling (Maisir), uncertainty (Gharar), and unethical transactions. Cryptocurrency such as Bitcoin and its unit Satoshi can be a good alternative to conventional money that may involve these prohibited elements.
Therefore, we need to be careful and prudent when using cryptocurrency for charity purposes. We need to do our research and due diligence before choosing a reliable and trustworthy platform or organization that accepts cryptocurrency donations. We need to check their reputation, track record, policies, procedures, fees, and compliance with Shariah principles. We need to also monitor the market trends and fluctuations of cryptocurrency prices and exchange rates. We need to also consult with qualified scholars and experts who can guide us on the Islamic rulings and opinions regarding cryptocurrency.
I hope this article has given you some insights and understanding about Satoshi and Bitcoin and how they can be used for charity purposes. I also hope that you will continue to support our Islamic charity institution with your generous donations and prayers. May Allah reward you for your kindness and generosity. Thank you for reading this article and please share it with others who may benefit from it. Peace be upon you.
Originally published at https://islamicdonate.com on August 19, 2023.
