19/05/25

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A recent initiative to simplify Bitcoin’s payment structure has encountered resistance, particularly concerning its proposal to eliminate the concept of satoshis. Bitcoin developer John Carvalho introduced Bitcoin Improvement Proposal-177, suggesting a shift from the current system where one Bitcoin (BTC) comprises 100 million satoshis, to a framework that divides Bitcoin’s total supply of 21 million into 21 quadrillion smaller units. This follows a previous attempt in 2017 by another developer aimed at creating “bits,” which would equate to one-millionth of a Bitcoin. However, Carvalho argued that the introduction of bits still necessitates engagement with decimal fractions, thereby complicating rather than clarifying the payment process.

Support for Carvalho’s proposal has emerged from notable figures like Jack Dorsey, the CEO of Block Inc., who has claimed that satoshis confuse newcomers to the cryptocurrency space. Dorsey emphasized that a more straightforward unit could facilitate transactions. He referenced discussions regarding user familiarity with Bitcoin itself compared to satoshis, suggesting that most individuals simply wish to send and receive Bitcoin without the complexities associated with its smaller units.

Conversely, there are significant voices opposing this change. Industry leaders, including Cory Klippsten, CEO of Swan Bitcoin, and Michelle Weekley from Byte Federal expressed that drawing comparisons between satoshis and cents illustrates a comprehensible structure. They contend that just as people easily understand cents in a dollar, they can grasp satoshis within Bitcoin. Additionally, concerns were raised that redefining these units could mislead some users into believing Bitcoin’s value had dramatically dropped due to a perceived inflation in supply.

Interestingly, the conversation around Bitcoin’s measurement units is not new. The pseudonymous creator of Bitcoin, Satoshi Nakamoto, acknowledged the potential for altering how Bitcoin’s units are presented in order to enhance usability, reflecting an ongoing dialogue regarding the best approach to ensure comprehension within the community. Since the Taproot upgrade in November 2021, the Bitcoin network has not adopted any improvement proposals, making this latest discussion particularly poignant as the community seeks to refine its universal usability.