December 15, 2024
The Bitcoin community is reviewing a proposal to remove decimal points and redefine the asset's main unit of measurement.
This initiative seeks to improve user experience and simplify understanding, but it has sparked controversy among enthusiasts.
Controversy rages over '1 Bitcoin = 1 Satoshi' proposal
Bitcoin advocate John Carvalho has proposed a Bitcoin Improvement Proposal (BIP) to change how the cryptocurrency is measured. His idea replaces the smallest indivisible unit, the satoshi, with the term bitcoin.
“This BIP proposes to redefine the commonly recognized unit of value, the ‘bitcoin’, so that the smallest, indivisible unit becomes the fundamental reference unit,” Carvalho wrote. “Under this proposal, one bitcoin is defined as that smallest unit, eliminating the need for decimal points.”
Under this plan, one Bitcoin would represent what is currently known as one Satoshi. This redefinition would turn 0.00010000 BTC into 10,000 Bitcoin.
Carvalho explained that this change aligns Bitcoin’s unit of measurement with its core protocol, making the system easier to understand. Furthermore, he noted that reducing the reliance on decimals will reduce the mental effort required to understand Bitcoin. He asserted that this clarity will improve both education and the user experience.
Historically, users have defined one Bitcoin as 100 million base units. Carvalho’s proposal redefines this concept by making the smallest unit the base reference. Under the proposed system, 1 BTC becomes 100 million Bitcoin. He argues that this shift simplifies communication about Bitcoin while preserving the core principles of the protocol.
“The current convention defines 1 BTC as 100,000,000 of the smallest indivisible units. This representation requires dealing with eight decimal points, which can be confusing and reinforces the misconception that Bitcoin is fundamentally based on decimal points. In fact, the Bitcoin ledger represents values as integers of the smallest unit, and the decimal point is just an abstraction imposed by humans,” he stated.
Carvalho concluded that his proposal offers several long-term benefits, including clearer communication, reduced confusion, and a more accurate understanding of Bitcoin's core design.
Not everyone agrees, however. Cryptocurrency influencer Clara Bitcoin has warned that redefining bitcoin’s units could hurt its narrative. She argued that the widely understood limit of 21 million bitcoins could lose its relevance if it were reinterpreted as 21 quadrillion units. Such a shift, she said, could make bitcoin seem less scarce and more abstract.
“The real good thing he pointed out in the BIP is that we should take more time to explain what a SAT is because it is a real unit of measurement in the Bitcoin protocol, code, and blockchain,” she added.