MilliBitcoin (mBTC) is 1/1000th of a Bitcoin (i.e., 0.001 BTC)—a helpful, smaller denomination of the currency used to reference smaller Bitcoin transactions.
1 BTC = 1,000 mBTC
What Does MBTC Mean?
It’s important to note that mBTC is not a different currency, and “mBTC” is not a ticker symbol. It’s simply a division of a whole Bitcoin, just like a milligram, millimeter, and milliliter, which are all units of measurement, subdivisions of a larger quantity.
MBTC means one one thousandth of a Bitcoin. As with other units with the prefix “milli,” the division in millibitcoin is one thousand.
“Milli” comes from the Latin mille, which means “one thousand”.
Is MilliBitcoin the Smallest Amount a Bitcoin Can Be Divided By
No, a milliBitcoin is not the smallest division of a Bitcoin. The smallest unit of Bitcoin is called a satoshi, and it represents 1/100,000,000th of a Bitcoin—100,000 mBTC. In simpler words:
1 Bitcoin = 1,000 mBTC = 100,000,000 satoshi
Why is MBTC Useful?
MilliBitcoin (mBTC) is useful for transactions smaller than one Bitcoin. Because the value of Bitcoin has risen dramatically since its creation, denoting small transactions has become difficult.
For example, if an online gift shop sold $100 t-shirts denoted in Bitcoin, it would have to advertise a price of 0.00142 BTC. With that many zeros at the beginning, the advertised value would feel abstract even to an experienced crypto trader. But if the price were 1.3 mBTC, it would be much easier for buyers to digest.
