Bitcoin fascinates, evolves, but still struggles to become an everyday currency. In this context, Jack Dorsey, co-founder of Block and influential crypto figure, proposes a conceptual revolution: removing satoshis, Bitcoin’s smallest unit, to make payments simpler and more intuitive.

Why remove Satoshis?

For 15 years, Bitcoin has been divided into units called satoshis (or “sats”), a tribute to its creator Satoshi Nakamoto. One satoshi equals 0.00000001 BTC, which means dealing with very small decimal figures — a real headache in everyday use. For a merchant, displaying a price as “0.00004321 BTC” often confuses customers rather than helping them.

Jack Dorsey points out this invisible barrier to adoption. According to him, these decimals create confusion and give the impression of a complex currency, difficult to understand and use daily. For Bitcoin to become a mainstream payment tool, it must be as instinctive as a simple smartphone tap.

The BIP 177 proposal: Renaming Satoshis as “Bits”

BIP 177, supported by Dorsey and initiated by John Carvalho, suggests a radical but purely cosmetic change: renaming each satoshi as a “bitcoin” (or “bit”), while reserving the BTC symbol for the old unit with eight decimals. Practically, 1 current BTC would equal 100 million whole “bits,” eliminating the need for decimals.

The goal is clear: shift from decimal displays to whole numbers, making amounts easier to read, more accessible, and more intuitive. Imagine saying “I’m buying 10,000 bitcoins” instead of “0.0001 BTC” — a change that might seem nominal but affects user psychology.

Expected benefits

• Simpler user interfaces: wallets and platforms can show whole amounts, easier to read and understand, especially for newcomers.
• Easier education: new crypto users will be less intimidated by long decimals.
• Reduced psychological barriers: whole numbers convey stability and clarity, while decimals emphasize volatility and complexity.
• Encouraging automatic savings: accumulating thousands of “bits” feels more tangible and motivating than fractions of BTC.

Even Satoshi Nakamoto hinted that such a change could be purely cosmetic, without altering the protocol.

A divisive proposal

However, not everyone welcomes this change. Purists fear losing part of Bitcoin’s historical identity by erasing the term “satoshi,” now a strong symbol. Some experts warn of potential chaos: how to manage coexistence of two display systems? Exchanges, wallets, and Lightning protocols will have to offer toggles between the traditional and new display, possibly complicating the transition.

Several community members point out that users already understand fractional units (like cents in a dollar) and that this change could cause unnecessary disruption. Michelle Weekley, product director at Byte Federal, reminds that “people understand cents, they will understand sats.” Meanwhile, Cory Klippsten, CEO of Swan Bitcoin, advocates a patient approach, believing the value and role of satoshis will naturally establish themselves, just like gold.

Ultimately, Jack Dorsey’s proposal doesn’t change Bitcoin’s technology or protocol. It changes the vocabulary and potentially how users perceive and use crypto. To win over the general public, Bitcoin must speak their language — one of simplicity and clarity.

Removing or renaming satoshis as “bits” is a bold bet, caught between nostalgia for the early days and the need for innovation. Only time will tell if the community chooses the bold path to mass adoption or the cautious path of tradition.

Source: Cryptoslate