The Bitcoin community is up in flames after a proposal to change the cryptocurrency base unit of measurement from “satoshis” to “bits”. The move has been welcomed and backed by Jack Dorsey, former Twitter CEO and Block Inc. head.
The idea has sparked major debate and division among developers and industry voices. Bitcoin’s price briefly surged above $107,000 on Monday, May 19, 2025 before retreating below $103,000.
John Carvalho presented the Bitcoin Improvement Proposal 177 (BIP-177) on April 23, 2025, recommending the elimination of “satoshis” (currently the smallest denomination of a Bitcoin, at 0.00000001 BTC) to replace it with “bits”.
His rationality behind switching to bits is to simplify Bitcoin’s usability for everyday users and reduce confusion caused by lengthy decimal places.
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“Shifting from sats to bits does more than a technical change, it’s a usability upgrade,” he said.
Jack Dorsey, a long-time Bitcoin advocate, joined the public debate late Sunday in support of this view, via a post on X (formerly Twitter).
“Sats are so confusing to people just getting into Bitcoin.
Bits of Bitcoin are better, and just Bitcoin is best,” his post read.
Dorsey also referenced a 2024 conversation by Spiral’s product head Stevie Lee, who said many users mistakenly think Sats are a separate token.
“Everyone knows BTC; no one knows sats,” Lee had remarked.
The concept of “bits” was first introduced in 2017 by developer Jimmy Song, who suggested the simplified unit as a way to improve Bitcoin’s user experience. While Carvalho’s BIP-177 builds on Song’s original idea, it proposes a more comprehensive overhaul, effectively dividing Bitcoin’s 21 million coin supply into 21 quadrillion base units.
Carvalho’s BIP-177 proposal has drawn major criticism from the Bitcoin community.
Michelle Weekley, director of product at Byte Federal, who dismisses the idea of re-denomination as unnecessary, said, “People understand cents in a dollar; they will understand sats in a Bitcoin”.
Others in the community warned that altering Bitcoin’s base unit could spark confusion and panic among investors.
Magdalena Gronowska, a Bitcoin consultant, went on to emphasize that a change of this nature might give the impression of sudden inflation or a market crash.
However, the division on this matter has brought renewed attention to Bitcoin’s user experience and its potential evolution as a medium of exchange.
