Jack 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?
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?
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 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 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?
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.
Conclusion
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.