Debate Heats Over ‘1 Bitcoin = 1 Satoshi’ Proposal

The Bitcoin community is reviewing a proposal to eliminate decimals and redefine the top asset's unit of measurement.

A proposal within the Bitcoin community aims to redefine the smallest indivisible unit, currently known as a Satoshi, as the primary unit of measurement. This move would eliminate decimals and significantly alter how the cryptocurrency is quantified.

Bitcoin advocate John Carvalho has introduced a Bitcoin Improvement Proposal (BIP) to standardize how Bitcoin is measured. Under his proposal, the smallest indivisible unit, currently termed a Satoshi, would become the primary reference unit, rendering the term Satoshi obsolete.

“This BIP proposes redefining the commonly recognized ‘bitcoin’ unit so that what was previously known as the smallest indivisible unit becomes the primary reference unit. Under this proposal, one bitcoin is defined as that smallest unit, eliminating the need for decimal places,” Carvalho explained in the BIP.

This redefinition would shift the scale of Bitcoin measurements by several orders of magnitude. For instance, 0.00010000 BTC, which currently represents 10,000 Satoshis, would be expressed as 10,000 Bitcoins under the proposed system.

Carvalho argues that aligning Bitcoin's unit of measurement with the underlying protocol would simplify the system and make it easier to understand. Additionally, he believes that reducing the reliance on decimals would lower the cognitive effort needed to grasp Bitcoin's essence.

“This clarity would improve both education and user experience. Historically, users define one bitcoin as 100 million base units. This representation, while useful, introduces a conceptual layer that can be simplified without losing any of the protocol’s principles,” he stated.

“The current convention defines one BTC as 100,000,000 of the smallest indivisible units. This representation requires dealing with eight decimal places, which can be confusing and foster the misconception that bitcoin is inherently decimal-based. In reality, Bitcoin’s ledger represents values as integers of a smallest unit, and the decimal point is merely a human-imposed abstraction.”

Carvalho concludes by highlighting several long-term benefits of his proposal, including clearer communication, reduced confusion, and a more accurate understanding of Bitcoin's fundamental design.

The proposal has sparked a heated debate within the crypto community, with some expressing strong support and others voicing concerns.

Some individuals, such as Mauricio Di Bartolomeo, cofounder of Ledn, believe that the shift could help correct the “unit bias” that makes Bitcoin seem overly expensive. According to him, presenting Bitcoin in smaller units could make it appear more accessible.

“This proposal has been floating around for a while, and I think it's a natural progression as BTC continues to rise in value,” said Di Bartolomeo. “We're already seeing some shifts in the community, with people using the term ‘bitcoin’ to refer to the smallest unit, and I expect this to continue.”

Similarly, Joe Nakamoto, another Bitcoin advocate, sees the proposal as an inevitability. According to him, wallets are already moving toward this change, and many users are embracing it. As Bitcoin's value continues to rise, he argues, adopting a simplified unit system will become more natural.

“Wallets are already implementing bitcoin, plenty of bitcoiners are advocating for the change and as the price soars higher and higher we will naturally gravitate to using the term bitcoin,” said Nakamato. “Sorry if you’re married to the idea of a ‘sat’ and I'm sure you’ll be stubborn and try to call it that for as long as you can, but it's not gonna last because it hasn't really stuck.”

However, not everyone agrees with this assessment. Crypto influencer Clara Bitcoin, known for her opposition to the proposal, argues that redefining Bitcoin's units could harm its narrative. According to her, the widely understood cap of 21 million Bitcoins might lose its significance if reinterpreted as 21 quadrillion units. Such a shift, she said, could make Bitcoin seem less scarce and more abstract.

“The real good thing pointed in the BIP is that we should take more time to explain what a sat is because it is true unit of measurement in the Bitcoin protocol, code, and blockchain,” she added.