A fresh wave of debate is rippling through the cryptocurrency community, reigniting the longstanding discussion over Bitcoin’s base unit. The latest catalyst? A proposal to transition from satoshis to a more comprehensible unit, hoping to make Bitcoin more accessible as a payment tool. Introduced by Bitcoin developer John Carvalho on April 23, Bitcoin Improvement Proposal-177 seeks to dismantle the concept of satoshis—where 100,000,000 make up one Bitcoin (BTC)—and instead split Bitcoin’s fixed supply into 21 quadrillion units.
A Tale of Two Units
Bitcoin’s base unit has been a contentious topic for years. In 2017, Bitcoin developer Jimmy Song proposed “bits,” representing one-millionth of a Bitcoin. Carvalho, however, criticizes this approach, arguing it merely shifts the complexity rather than resolving it. “We need a straightforward system,” Carvalho contends. “Bits just complicate the math for everyday users.”
Jack Dorsey, CEO of Block Inc., threw his weight behind the change, voicing his opinion in a May 18 post on X. He argues that satoshis—or “sats”—are bewildering for newcomers. “Bits of Bitcoin is better, and just Bitcoin is best,” Dorsey succinctly noted. This sentiment echoes past discussions, such as a December 2024 debate where Stevie Lee of Spiral highlighted that the average user is often perplexed by satoshis, sometimes mistaking them for a separate entity entirely.
The Community Divided
Not everyone is on board with the proposed transformation. Critics like Swan Bitcoin CEO Cory Klippsten and Byte Federal’s Michelle Weekley argue that if people can grasp cents in a dollar, they can certainly understand sats in a Bitcoin. Weekley took to X to express her stance: “People understand cents in a dollar, they will understand sats in a Bitcoin.” For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Adding a layer of concern, consultant Magdalena Gronowska warns that such a change could spur misconceptions. “Some might believe Bitcoin’s value plummeted or its supply inflated,” she cautions. Parker Lewis of Zaprite suggests that sats, in reality, offer a simpler solution, reinforcing, “It’s a matter of perspective and education.”
A Nod from the Past
Interestingly, the concept isn’t entirely new. Back in February 2010, Bitcoin’s elusive creator, Satoshi Nakamoto, mused over the possibility: “If it gets tiresome working with small numbers, we could change where the display shows the decimal point,” Nakamoto wrote on Bitcointalk. This openness to adjust for usability hints at a historical leniency towards such changes.
Since the Taproot upgrade in November 2021, which enhanced Bitcoin’s speed, efficiency, and privacy, the network hasn’t implemented any significant improvement proposals. The current dialogue presents an opportunity for evolution, but how the community will ultimately respond remains to be seen. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
The Road Ahead
As May 2025 progresses, the Bitcoin community finds itself at a crossroads. The proposed change promises simplicity and broader appeal, yet it raises questions about tradition, understanding, and potential confusion. The debate underscores the tension between innovation and maintaining familiar paradigms. Will Bitcoin’s unit of measurement undergo a revolution, or will the community stick with tradition? The answer, seemingly, is yet to be mined.
Source
This article is based on: ‘Sats’ vs ‘bits’ debate reignites amid proposal to change Bitcoin base unit
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
