Bitcoin's Base Unit Debate: Satoshis vs. Bits

Coin WorldMonday, May 19, 2025 2:06 am ET
1min read

A recent proposal to change Bitcoin’s base unit has reignited the debate between those who support the current unit, satoshis, and those who advocate for a new unit, bits. The proposal, introduced by Bitcoin developer John Carvalho, aims to eliminate satoshis and split Bitcoin’s fixed supply of 21 million into 21 quadrillion units. This proposal follows a 2017 suggestion by Bitcoin developer Jimmy Song to create bits, representing one-millionth of 1 Bitcoin. However, Carvalho argues that Song’s approach would still require users to think about decimals, shifting complexity rather than eliminating it.

Block Inc. CEO Jack Dorsey is among those calling for the change, stating that satoshis are too confusing for newcomers. He pointed to a discussion where Stevie Lee, product lead of a Bitcoin infrastructure firm, argued that not enough people know or care about what satoshis are. Lee recalled past conversations where people thought satoshis were an entirely new token, unrelated to Bitcoin. He added that the Bitcoin community shouldn’t be too concerned with the change, as the underlying economics of Bitcoin would remain intact.

Opponents of the change include Swan Bitcoin CEO Cory Klippsten and Byte Federal director of product Michelle Weekley. Weekley argued that people understand cents in a dollar, and they will understand satoshis in a Bitcoin. Magdalena Gronowska, a Bitcoin consultant, claimed that the change could make some people think that Bitcoin abruptly crashed from its current price and that its supply has massively inflated.

Parker Lewis, business development lead, argued that satoshis were easier to understand. Robin Linus, the creator of the Bitcoin Virtual Machine, highlighted that even Bitcoin’s pseudonymous creator, Satoshi Nakamoto, was open to changing how Bitcoin’s units are displayed for the purpose of usability. In a February 2010 post, Satoshi said, “If it gets tiresome working with small numbers, we could change where the display shows the decimal point.”

The debate over changing Bitcoin’s base unit underscores the tension between the cryptocurrency’s technical and cultural aspects. While satoshis are a fundamental part of Bitcoin’s identity and history, bits are seen by some as a more user-friendly and accessible alternative. The outcome of this debate could significantly impact how Bitcoin is used and perceived by both existing and new users. Ultimately, the decision to change the base unit will depend on the consensus of the Bitcoin community, which will need to weigh the potential benefits and drawbacks of each option.