The discussion over how Bitcoin should be denominated was proposed by Block Inc CEO Jack Dorsey, who made a formal proposal to replace the crypto’s smallest unit, the satoshi, with a new standard.
In a May 18 X post, Gradually Author Parker Lewis mentioned that under the current structure, one BTC equals 100 million satoshis, or “sats.” Yet, critics argue that such small denominations and decimals make Bitcoin’s everyday use confusing, particularly for new holders.
A.
1 bitcoin = $103,000
There are only 21 million bitcoin
1 bitcoin can be divided into 100,000,000 sats
$1 = 970 satsOr
B.
1 bitcoin = $0.001
There are only 2.1 quadrillion bitcoin
1 bitcoin can be divided into 100,000,000 bitcoins
$1 = 970 bitcoinsEasy A. Sats standard
— Parker Lewis (@parkeralewis) May 17, 2025
BTC developer John Carvalho introduced Bitcoin Improvement Proposal 177 (BIP-177) on April 23. The proposal suggests removing satoshis, currently the smallest unit of BTC, and replacing them with a simplified denomination that would effectively split BTC’s 21 million coin supply into 21 quadrillion base units.
Carvalho’s plan builds on a 2017 idea from developer Jimmy Song, who introduced the concept of “bits,” equal to one-millionth of a Bitcoin. The developer, however, admitted that Song’s idea requires mental conversion and doesn’t go far enough to reduce complexity.
“Shifting from sats to bits does more than a technical change, it’s a usability upgrade,” Carvalho stated.
Jack Dorsey supports Bitcoin unit change
Joining the discussion on social media late Sunday, Dorsey quoted an X post that claimed “it is not wrong to call satoshis BTC,” saying: “Sats are so confusing to people just getting into bitcoin. Bits of Bitcoin is better, and just Bitcoin is best.”
Dorsey also referenced a December 2024 discussion led by Stevie Lee, product lead at Spiral, a BTC infrastructure initiative under Block. Lee had noted that many users mistakenly believe sats are a separate token, adding that “everyone knows BTC, no one knows sats.”
“People just want to send and receive Bitcoin,” he reckoned.
Still, not everyone in the BTC community agrees with Dorsey and Carvalho’s proposed change. Naysayers insist users are already becoming accustomed to sats, and that adjusting Bitcoin’s base unit could create unnecessary confusion and even inflation.
“People understand cents in a dollar, they will understand sats in a Bitcoin,” said Michelle Weekley, director of product at Byte Federal, dismissing the change.
Magdalena Gronowska, a self-described BTC consultant, warned that re-denominating BTC could cause panic among retail investors.
“It could make some people think that BTC abruptly crashed from its current price of around $100,000,” she continued, “It gives the false impression that supply has massively inflated.”
BTC financial services firm Unchained Author Tom Honzik asserted that no newcomer he has worked with “has found sats confusing.” Osmo Wallet founder Piero Coen supported him, “It’s more confusing to say “BTC is the scarcest asset on earth; there are “only” 21Quadrillion BTCs. Bits are easier, but changing sats to bitcoins would be disastrous.”
Alternate proposals ensue
BitTrees Research’s Jonathan, known on X as Raging BTC, suggested a hybrid model where 1 Bitcoin is equal to 1 million bits, and 1 bit equals 100 sats. This model, he propounded, could provide a clearer parallel to familiar monetary systems.
“1 dollar = 9.7 bit,” Jonathan calculated, under current market conditions. He also pointed out that the terms “sats” and “cents” sound similar, which could muddle how new users understand BTC.
Some proponents of change cited comments from BTC’s pseudonymous creator, Satoshi Nakamoto, to support the idea.
In a February 2010 post, Nakamoto appeared open to modifying how Bitcoin units are displayed, stating, “If it gets tiresome working with small numbers, we could change where the display shows the decimal point. Same amount of money, just different convention.”
Meanwhile, BTC prices made an early morning rally on Monday, catching many traders off guard and climbing 4% to briefly touch $107,000, just $2,000 shy of its all-time high of $109,000.
Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn More
English 
Spanish 