Crucial Bitcoin Debate: Jack Dorsey Backs Plan to Change Base Unit from Sats

A significant conversation is happening within the crypto world, specifically around how we refer to small amounts of Bitcoin. Should we keep using ‘satoshis’ (or ‘sats’) as the smallest unit, or is it time to switch to something simpler like ‘bits’? This isn’t just a technical discussion; it’s about making the primary Bitcoin base unit more accessible for everyone.

What’s the Debate Around Changing the Bitcoin Base Unit?

Right now, the smallest fraction of a Bitcoin is called a satoshi. There are 100,000,000 Satoshis in one full Bitcoin (BTC). This system has been in place since Bitcoin’s creation.

However, a new proposal, Bitcoin Improvement Proposal (BIP)-177, introduced by developer John Carvalho on April 23, aims to eliminate the concept of satoshis entirely. Instead, it proposes effectively splitting the total 21 million Bitcoin supply into 21 quadrillion individual units. This isn’t the first time this idea has come up; developer Jimmy Song proposed creating ‘bits’ in 2017, representing one-millionth of 1 Bitcoin (100 sats).

Carvalho argues that Song’s ‘bits’ approach still requires users to think about decimals, simply shifting complexity rather than removing it.

Why Do Some People Want to Move Away from Satoshis?

The main argument for changing the unit away from Satoshis centers on simplicity and user-friendliness, especially for people new to crypto. Prominent figures like Block Inc. CEO Jack Dorsey are vocal supporters of this view.

In a recent post, Dorsey stated that ‘sats’ are too confusing for newcomers and that ‘Bits of Bitcoin is better, and just Bitcoin is best.’

Stevie Lee, product lead at Spiral, a Bitcoin infrastructure firm, echoed this sentiment in a December 2024 discussion, noting that many people don’t know or care what satoshis are. Lee shared experiences where people mistook satoshis for a different cryptocurrency entirely. He believes that while the community understands the underlying economics remain unchanged, simplifying the unit is crucial for broader adoption.

Who Thinks Sticking with Satoshis or Using Bits is Better?

Not everyone agrees that changing the unit is a good idea. Critics argue that the concept of fractions isn’t inherently confusing and point to everyday examples.

• Comparison to Cents: Swan Bitcoin CEO Cory Klippsten and Byte Federal director Michelle Weekley argue that understanding satoshis is comparable to understanding cents in a dollar. Weekley stated, ‘People understand cents in a dollar, they will understand sats in a Bitcoin.’
• Potential for Confusion: Magdalena Gronowska, a Bitcoin consultant, raised concerns that changing the unit could mislead some into thinking Bitcoin’s price had crashed or its supply had inflated dramatically.
• Simplicity of Sats: Zaprite business development lead Parker Lewis suggested that ‘sats’ were actually easier to grasp than alternative systems.

The debate highlights differing views on how to best present Bitcoin’s value and units to a global audience.

What Did Satoshi Nakamoto Say About Bitcoin Units?

Interestingly, even Bitcoin’s pseudonymous creator, Satoshi Nakamoto, considered the idea of changing how units are displayed for usability purposes.

In a February 2010 post, Satoshi wrote, ‘If it gets tiresome working with small numbers, we could change where the display shows the decimal point.’ They added, ‘Same amount of money, just different convention.’

This historical comment indicates that the flexibility in how Bitcoin amounts are represented was contemplated from the project’s early days, provided the underlying economic reality remains consistent.

The Role of Jack Dorsey in This Revived Debate

The involvement of figures like Jack Dorsey brings significant attention to this discussion. His public support amplifies the call for simplifying Bitcoin’s units, pushing it into broader conversations beyond just core developers.

Dorsey’s platform allows the arguments for adopting ‘bits’ or simply referring to small amounts as ‘Bitcoin’ to reach a wider audience, forcing the community to seriously consider the implications for mainstream adoption and user experience.

Summary

The proposal to change Bitcoin base unit away from satoshis to potentially ‘bits’ or a simpler system has reignited a long-standing debate. Supporters like Jack Dorsey argue that simplifying the unit is essential for making Bitcoin less confusing for newcomers, comparing Satoshis unfavorably to the concept of cents. Opponents counter that satoshis are understandable and that changing the unit could create confusion about Bitcoin’s price and supply. Even Satoshi Nakamoto was open to different display conventions. While no changes are imminent, this discussion underscores the ongoing effort to balance technical integrity with user accessibility in the evolving world of Bitcoin.