What is the smallest unit of Bitcoin?

The smallest unit of Bitcoin is called a "Satoshi," named after the pseudonymous creator of Bitcoin, Satoshi Nakamoto. One Satoshi represents one hundred millionth of a single Bitcoin (0.00000001 BTC). Satoshi units are used to facilitate microtransactions and enable finer granularity when dealing with Bitcoin amounts, especially as the price of Bitcoin increases. For example, if one Bitcoin is worth $50,000, then one Satoshi would be equivalent to $0.0005. Using Satoshis allows for precise and scalable transactions, accommodating various use cases and financial needs within the Bitcoin ecosystem.