The Bitcoin BIP proposal suggests redefining the smallest unit 'Satoshi' as 'Bitcoin', that is, 1 Satoshi = 1 Bitcoin.
The Bitcoin community is discussing a proposal aimed at eliminating decimals and redefining the measurement unit of Bitcoin, replacing the current smallest unit 'Satoshi' (referred to as sat) with 'Bitcoin'.
This proposal was put forward by Bitcoin advocate John Carvalho, who argues in his BIP proposal from December 2024 to split 1 Bitcoin into 100 million 'Satoshis', directly defining the smallest unit 'Satoshi' as 'Bitcoin', meaning 1 Satoshi = 1 Bitcoin. This implies that the current 0.00010000 BTC would become 10,000 Bitcoins.
Recently, this proposal has gained renewed attention from the community. Carvalho pointed out that this proposal would align the Bitcoin unit with its underlying protocol, simplify system understanding, and lower the cognitive threshold, thereby improving education and user experience.
However, the proposal has also sparked divisions within the community. Some supporters believe this change addresses the 'unit bias' that makes Bitcoin seem overly expensive.
Yet, some community members have expressed concerns that if the total supply expands from 21 million to 21 trillion, then the cap of 21 million Bitcoins may lose significance, undermining the core foundation of Bitcoin's scarcity narrative.
At the same time, the real benefit of the BIP is that it encourages us to focus more on explaining the smallest unit 'Satoshi' (sat), as it is the fundamental measurement unit in the Bitcoin protocol, code, and blockchain.
Despite the many disagreements on this topic, Carvalho's proposal is gaining more support. He even posted on the X platform that, although still a minority supporting this proposal, more and more people are beginning to accept the idea of referring to Bitcoin's smallest unit as 'Bitcoin'.
In summary, whether this proposal will ultimately be accepted by the community remains to be seen. However, the ongoing debate highlights that even the smallest unit adjustment can make Bitcoin more accessible to the general public.
What do you think about this proposal that may change the way Bitcoin is measured? Do you believe replacing 'Satoshi' with 'Bitcoin' as the measurement unit could lower the public's understanding threshold for Bitcoin?
