John Carvalho, CEO of Synonym, has proposed to the community the idea of renaming the smallest indivisible unit of the first cryptocurrency to “bitcoin.”
Today, I submitted a new BIP proposal for public review:
Redefinition of the Bitcoin Unit to the Base Denomination
Abstract
This BIP proposes redefining the commonly recognized “bitcoin” unit so that what was previously known as the smallest indivisible unit becomes the primary…— John Carvalho (@BitcoinErrorLog) December 13, 2024
“This BIP aims to simplify user understanding, reduce confusion, and directly align on-chain values with their displayed representation,” he wrote.
The current convention defines 1 BTC as 100,000,000 base units, unofficially known as satoshis or sats. Carvalho believes these terms are outdated and suggests a shift to bitcoin.
Such a move would eliminate decimal points, simplify cryptocurrency use, and reduce the likelihood of errors, he emphasized.
As an example, the expert cited the current display of an amount as 0.0001 BTC, which, if his proposal is accepted, would transform into 10,000 BTC (or ₿10,000).
He stressed that the changes would not affect ledger rules and consensus.
“Adopting the smallest unit as the primary measure ensures a unified standard that can smoothly scale as bitcoin adoption grows,” Carvalho added.
The expert also touched upon the competing BIP 176, proposed in December 2022 by developer Jimmy Song. He suggested introducing a “bit” unit, equal to 100 satoshis, for the convenience of small transactions. Carvalho argues this would not eliminate decimal numbers.
“While ‘bits’ may simplify some price ranges, future circumstances might require additional denominations or large-scale adjustments. Our integral approach fully resolves this issue, making the smallest unit the standard measure, avoiding fragmentation in the future,” he stated.
Carvalho’s proposal faced criticism within the community. Some pointed out that even with gradual implementation, redenomination would cause market confusion, difficulties for applications, and deter new users.
Harmful across multiple metrics.
Linguistically it is almost always a terrible idea to undermine the definition of a word that has numerical or scientific purpose. This is compounded when the word in question also acts as a wordmark of sorts for the amorphous branding of…
— Psifour (@Psifour) December 13, 2024
“Linguistically it is almost always a terrible idea to undermine the definition of a word that has numerical or scientific purpose. This is compounded when the word in question also acts as a wordmark of sorts for the amorphous branding of bitcoin,” wrote the developer known as Psifour.
He believes the best solution is to introduce new accounting units like “bits,” distinct from the protocol’s name. He pointed to the successful experience of some blockchains, he added.
According to the user under the pseudonym Ben vHodl, a 2.1 quadrillion BTC emission limit would sound strange. He believes it is more reasonable to use satoshis.
You’ll have to rewrite all the books because there is no longer a 21M Bitcoin limit then. How do you even pronounce 2.100.000.000.000.000
Sats are just fine.
— Ben vHodl (@benvhodl) December 14, 2024
The last major update, Taproot, was activated on the Bitcoin network in November 2021. Work on the improvements included in the upgrade had been underway since 2018.