Jack Dorsey Proposes the End of "Sats", Bitcoin's Smallest UnitJack Dorsey Proposes the End of "Sats", Bitcoin's Smallest Unit
Jack Dorsey, co-founder of Block and a vocal advocate for Bitcoin, is supporting a radical shift in how we interact with BTC: the elimination of the satoshi (sat) as the smallest unit of Bitcoin.
What’s the Proposal?What’s the Proposal?
Dorsey is backing BIP 177, a Bitcoin Improvement Proposal that suggests redefining “1 bitcoin” to represent what is currently 1 satoshi (0.00000001 BTC).
The idea?The idea?
To simplify Bitcoin's user experience by eliminating the need for decimals. Instead of showing fractions of a Bitcoin for everyday transactions, users would deal in whole numbers.
For example:
- Instead of
0.00042 BTC, you’d see 42 bitcoin (under the new unit system).
Why This MattersWhy This Matters
Bitcoin’s current structure—working with eight decimal places—is seen as a barrier for new users. Dorsey argues that decimal-based thinking is confusing and unintuitive, especially for mainstream adoption.
Reframing the base unit to what is now a “sat” would:
- Make BTC easier to understand.
- Enhance its appeal for daily payments.
- Normalize transaction amounts for average users.
A Familiar DiscussionA Familiar Discussion
This isn’t the first time the community has debated the decimal problem. But with Dorsey’s backing and the rise of Bitcoin adoption, the idea is gaining more serious traction.
What Needs to Happen?What Needs to Happen?
For this change to take place, it would require:
- Broad consensus within the Bitcoin community.
- Updates to wallets, exchanges, and other tools.
- Education and transition time for users.
ConclusionConclusion
This proposal could radically reshape how Bitcoin is perceived and used. Moving away from sats and redefining the base unit might just be what Bitcoin needs for wider adoption.
If people can under cents and dollars, they can understand bitcoins and sats. Shitcoins are looking very appealing all of a sudden. Education is not about dumbing down, that's how public schools work
Personally I think it is unnecessary, and would only cause confusion.
me tooooo!!!
I believe the example is incorrect. It should state that 0.00042 BTC is equivalent to 42,000 bitcoins under BIP-177, not 42 bitcoins as it only replaces base unit.
Anyway, this proposal is truly groundbreaking.
I found the US monetary system is also rather confusing, which inspired me to propose a similar initiative called
DIP-177. I encourage you to take a look at the proposal #987360.Here's brief excerpt:
I believe Jack Dorsey's approach to this issue is so brilliant and excellent.
under the new unit system 42 bitcoin = 42k sats ?
Corrent > new 1 bitcoin = 10k bitcoin?
1$ = 100 cents 1 bitcoin= 100M sats
He might be right. The average normie gives you a blank look when you mention sats but most people have heard of bitcoin at this stage, even the boomers.
The question for me is about potential unintended consequences?