Bitcoin Community Debates Proposal to Rename 'Sats' to 'Bits'

By: Isha Das

The Bitcoin community is currently engaged in a heated debate over a proposal to change the terminology used for Bitcoin's smallest unit. Introduced by John Carvalho, CEO of Synonym, Bitcoin Improvement Proposal (BIP) 177 suggests renaming "satoshis" (sats) to "bits." This change, as proposed, would redefine 1 satoshi as "1 bitcoin," thus making what is currently known as 1 BTC equal to 100 million bitcoins, or bits. This idea aims to make Bitcoin more comprehensible for everyday transactions, potentially reducing cognitive friction for users.

The proposal has gathered both support and criticism from within the crypto sphere. Notably, Jack Dorsey, former CEO of Twitter and a staunch Bitcoin advocate, has expressed his support for the change, arguing that the term "sats" presents a psychological barrier to new users engaging with Bitcoin. Dorsey stated that eliminating this barrier could facilitate a more widespread use of Bitcoin in everyday transactions. He suggested that simplifying Bitcoin’s units could align better with user interfaces and ease transactional understanding.

However, not all feedback has been positive. Critics argue that the change could confuse users, particularly newcomers to the Bitcoin ecosystem. Samson Mow, CEO of JAN3, supports the transition to bits, but recommends waiting until Bitcoin achieves dollar-satoshi parity to implement such changes. He proposes adding two additional decimal places, which he refers to as "satcents," for further refinement of the unit system. Meanwhile, Yu Xian, founder of Slowmist, a blockchain security firm, warns that the redefinition could lead to technical confusion and misinterpretation, potentially causing operational errors or scams.

Despite these concerns, Carvalho defends his proposal, stating that criticisms are often based on misconceptions about BIP 177. He emphasizes that many who oppose the change have not fully engaged with the technical details or considered its benefits. The debate over whether to move from sats to bits highlights ongoing discussions within the Bitcoin community about how to make the cryptocurrency more accessible and user-friendly. As the debate continues, it remains to be seen whether BIP 177 will be adopted or if its inherent challenges will prevail in halting the proposed changes.