Bitcoin Proposal Redefines Minimum Coin Unit from "Satoshi" to "Bit," Potentially Altering the Entire Crypto Landscape
In the ever-evolving world of cryptocurrency, a significant proposal has been making waves – BIP 177. This Bitcoin Improvement Proposal, presented by John Carvalho, aims to redefine the base unit of Bitcoin from the satoshi to the bit.
If approved and implemented, BIP 177 could have a significant impact on how Bitcoin is perceived and used worldwide. It's believed that this change could accelerate mass adoption, particularly in markets where financial and technological education is limited.
The proposal aligns more closely with the internal logic of the Bitcoin protocol, improving technical transparency and reducing complexity in value representation. By redefining the minimum unit and displaying values in whole numbers, users might feel they possess "more bitcoins," which could increase their sense of participation and confidence in the currency.
This modification could encourage more businesses to accept Bitcoin and more people to use it as a means of payment, strengthening its function as a currency and not just an investment asset. Jack Dorsey, co-founder of Twitter and Block Inc., supports the BIP 177 proposal, arguing that the term "satoshi" is confusing for new users.
Critics, however, warn that the modification could affect the culture and identity surrounding Bitcoin. Some members of the Bitcoin community argue that changing the minimum unit from "satoshi" to "bit" could cause confusion during the transition period.
It's important to note that the change does not alter the protocol or the total amount of Bitcoin in circulation, which remains 21 million. The change aims to eliminate decimals and display amounts in whole numbers, simplifying the understanding and use of Bitcoin, especially in micropayments.
Currently, one Bitcoin is divided into 100 million satoshis. BIP 177 proposes to redefine the base unit of Bitcoin as the "bit", with one Bitcoin equaling 100 million "bits".
As of August 2025, BIP 177 remains a proposal without implementation or significant adoption. Bitcoin's minimum unit remains the satoshi. The regulatory and market information from 2025 focuses primarily on broader Bitcoin adoption, exchange-traded products (ETPs), and institutional involvement, with no indication of unit redefinition proposals moving forward.
For those interested in learning more about Bitcoin, the Bitcoin 101 course on the website Academy can provide further education.
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