Jack Dorsey backs 'sats' in 'bits' name change debate

Jack Dorsey Supports Renaming 'sats' to 'bits' Amid Bitcoin Community Debate

19 May 2025 at 21: 47

Reading time: 2 minutes

A proposal to make the smallest unit of Bitcoin from “satoshi” to “bit” is gaining traction again. This idea was presented last month by John Carvalho, the CEO of Synonym, and is referred to as BIP 177.

Current standards state 1 BTC equal to 100 million satoshis. Carvalho’s plan turns this on its head by redefining the smallest unit, 1 satoshi, as “1 bitcoin.” This would mean that 1 BTC is equal to 100 million bitcoins (or bits). Under this new model, a transaction of 0,0001 BTC would be represented as 10.000 bitcoins. Likewise, having 10,23486 BTC would be equivalent to having 1.023.486.000 bitcoins.

Carvalho argues that this change makes it easier for users to understand the top cryptocurrency, reduces cognitive load, and better aligns the user interface with BTC’s transaction structure. He noted that “Bitcoin’s ledger represents values as integral base units. The decimal point is just a human-imposed abstraction.”

Mixed Reactions to Bitcoin's BIP 177

The proposal has generated excitement but also concern within the crypto community. Twitter founder and Bitcoin advocate Jack Dorsey supports the change. He believes the term “sats” creates a psychological barrier for new users. Dorsey argues that “the term ‘sats’ is definitely wrong and prevents regular people from buying and spending Bitcoin.”

Samson Mow, CEO of JAN3, also supports a move to bits, but advises waiting until Bitcoin has reached parity with the dollar. At that point, he would propose adding two additional decimal places, “satcents,” for more granularity. He says, “Bitcoin will be synonymous with money, so there will be no need for sats.”

Still, there are critics who question BTC’s broader security and community understanding. Yu Xian, founder of blockchain security firm Slowmist, warns that the change could lead to misinterpretation and technical confusion for newcomers. He argues that if BIP 177 passes, some untrustworthy platforms could start incorrectly listing 1 bitcoin as 1 BTC. “You have to believe that the more basic the security issue, the more likely it is to happen,” he adds. “Of course, there could be scams as well.”

Still, Carvalho believes critics have not really delved into the content of BIP 177. “Most people who fear BIP 177 have not actually read it and do not even try to refute the real motives behind it,” he says.

Frequently Asked Questions

Why is it proposed to rename the smallest unit of Bitcoin?
The proposal to change “satoshi” to “bit” is intended to lower the barrier for new users and help them better understand Bitcoin.

What is the main difference between the old and new definition of Bitcoin units?
The current definition makes 1 BTC equal to 100 million satoshis, while the new definition considers 1 satoshi to be 1 bitcoin, making 1 BTC equal to 100 million bitcoins.

What are the risks of this change according to critics?
Critics point to the potential for misinterpretation and confusion, especially among new users, and fear this could undermine Bitcoin's overall security.

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