Goodbye Satoshi? The Bitcoin Unit Debate Heats Up
A controversial proposal to redefine Bitcoin’s base unit is sparking intense debate across the cryptocurrency community. Bitcoin Improvement Proposal 177 (BIP 177), introduced by John Carvalho, CEO of Synonym, suggests renaming the smallest unit of Bitcoin from “satoshis” to “bits” or simply “Bitcoin.” This change aims to enhance clarity and promote wider adoption by making Bitcoin amounts more intuitive for everyday users.
Understanding BIP 177
Currently, one Bitcoin (BTC) is divisible into 100 million satoshis (sats), named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto. BIP 177 proposes shifting the base unit to “bits,” where 1 Bitcoin equals 1,000,000 bits. This redefinition would mean that, for example, 0.00002525 BTC would be represented as 2,525 bits.
Carvalho argues that this change aligns with Bitcoin’s original design, which treats amounts as whole numbers without inherent decimal points. He believes that using “bits” can make Bitcoin more accessible and reduce confusion for new users.
Supporters of the Proposal
Jack Dorsey, co-founder of Twitter (now X) and a prominent Bitcoin advocate, has publicly endorsed BIP 177. He stated on X, “‘Sats’ is definitely the wrong term and is stopping everyday people from acquiring and spending Bitcoin.” Dorsey emphasizes the need for Bitcoin to function effectively as money, suggesting that clearer units could facilitate this goal.
Bob Bodily, CEO of Odin.fun, also supports the proposal, noting that rebranding satoshis to bits could help address “unit bias”—the psychological effect where investors prefer assets with lower nominal prices. He believes that using bits can make Bitcoin amounts more relatable and encourage adoption.
Opposition and Concerns
Despite its supporters, BIP 177 faces criticism from parts of the Bitcoin community. Some argue that changing the base unit could undermine the established narrative of Bitcoin’s fixed supply of 21 million coins. Bram Kanstein, a Bitcoin educator, expressed concerns that the proposal “destroys the entire understanding of 21,000,000 max supply” and complicates the long-standing educational efforts around Bitcoin’s scarcity.
Others worry about potential confusion, especially for those already familiar with the current system. They argue that introducing a new unit could lead to misunderstandings and hinder adoption rather than help it.
The Broader Context
The debate over Bitcoin’s unit comes at a time when the cryptocurrency is experiencing significant growth and mainstream attention. As of May 2025, Bitcoin is trading around $105,000, with predictions suggesting it could reach between $180,000 and $250,000 by the end of the year, driven by factors like institutional adoption and favorable regulatory developments .
In this context, making Bitcoin more user-friendly and understandable becomes increasingly important. Proponents of BIP 177 argue that redefining the base unit could play a role in facilitating broader adoption by simplifying transactions and reducing psychological barriers.
Final Thoughts
BIP 177 presents a thought-provoking proposal to redefine Bitcoin’s base unit, aiming to make the cryptocurrency more accessible and intuitive for users. While it has garnered support from notable figures like Jack Dorsey, it also faces significant opposition concerned about preserving Bitcoin’s established narratives and preventing confusion.
As Bitcoin continues to evolve and integrate into the global financial system, discussions like these highlight the ongoing efforts to balance innovation with the principles that have underpinned its success.
