Base KML can have many decimal places in coordinates. This is what you will see in Excel, or if you view the KML file in a text editor.
Here is the KML label with 10 decimal places:
<Placemark> <name>Google office</name> <description>This is the location of Google</description> <Point> <coordinates>-122.0123456789,37.0123456789</coordinates> </Point> </Placemark>
Google Earth stores all numbers, but displays up to 6 coordinates. This is not a loss of accuracy or precision - just a display problem.
But understand that the precision at ten-digit points in the coordinates is 10 cm. Each .000001 difference in the decimal degree of the coordinate is about 10 cm in length. Google Earth images typically have a resolution of 1 meter, and some locations have the highest resolution of 1 inch per pixel. One meter resolution can be represented using 5 decimal places, so no more than six decimal places are required.
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