Jack Dorsey supports replacing satoshis with bits to improve accessibility and reduce confusion for Bitcoin users.
BIP-177 proposes simplifying Bitcoin by redefining the smallest unit as one millionth of a BTC.
Critics fear that re-denomination could mislead users into thinking Bitcoin’s supply has changed.
Jack Dorsey, CEO of Block Inc., has publicly endorsed a proposal to change Bitcoin’s smallest unit of measurement. The current unit, known as the satoshi, represents one hundred millionth of a Bitcoin. Dorsey supports switching to “bits,” which would equal one millionth of a Bitcoin, claiming it would improve usability for new users.
The idea was introduced formally as BIP-177 by Bitcoin developer John Carvalho. The proposal suggests dividing Bitcoin’s 21 million supply into 21 quadrillion bits. This change builds on a 2017 suggestion by developer Jimmy Song, who originally introduced the concept of bits to make Bitcoin transactions more intuitive.
Arguments for the Shift Center on Usability
Supporters argue that using sats confuses many newcomers. Dorsey emphasized this in a post, saying most people understand Bitcoin but not satoshis. He added that calling small units “bits” would better align with user expectations. Spiral’s product lead Stevie Lee echoed this sentiment, noting users often mistake sats for separate tokens.
https://twitter.com/parkeralewis/status/1923882634377085079
Several figures in the Bitcoin community have raised concerns about the potential effects of the proposed change. Michelle Weekley from Byte Federal stated that users are already adapting to sats and understand the comparison to cents in dollars. Magdalena Gronowska, a Bitcoin consultant, warned that renaming units could create panic by appearing to inflate Bitcoin’s supply.
Alternative Suggestions and Historical Context
Some developers have proposed hybrid models to bridge existing units and the proposed system. One suggestion by BitTrees Research aligns bits and sats to offer better clarity. Historical comments by Bitcoin’s creator, Satoshi Nakamoto, showed openness to adjusting unit displays if it improves usability.
As the debate unfolded, Bitcoin saw a brief price spike. On Monday, BTC surged to $107,000 before pulling back below $103,000, adding to recent market volatility. The sudden rally coincided with renewed public attention to the unit change discussion.
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