Similar to other currencies, Bitcoin has units, unlike currencies such as the Euro and Dollar, Bitcoin has many different units, not all of which are common. Satoshi’s approach for Bitcoin was to create a digital and decentralized currency. But since Bitcoin is only digital and code-based, it could theoretically be divided into almost infinite fractions.
The Bitcoin currency can be divided to the 8th decimal place. But why are there so many decimal places and what do you need them for? The answer to this question lies in the characteristic that distinguishes Bitcoin from fiat money. Bitcoin is one of the deflationary currencies, which means it gains in value over time.
When the first transaction in the real world was made in 2011, a Bitcoin was approximately the equivalent of US$0.01. Today, in 2019, it is around 9700 US$ and in 2017 it was even over 20,000 US$. This is why these smaller Bitcoin units are so important for everyday use. There are also investors who do not have large sums of money at their disposal and therefore only want to buy a fraction of a coin.