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Last week, long-time Bitcoiner John Carvalho introduced a new Bitcoin Improvement Proposal (BIP) aimed at addressing the unit bias issue many people face when first finding bitcoin.
“This BIP proposes redefining the commonly recognized “bitcoin” unit so that what was previously known as the smallest indivisible unit becomes the primary reference unit,” Carvalho explains. “Under this proposal, one bitcoin is defined as that smallest unit, eliminating the need for decimal places. By making the integral unit the standard measure, this BIP aims to simplify user comprehension, reduce confusion, and align on-chain values directly with their displayed representation.”
The display of how units of bitcoin are displayed would shift from its current state to this:
Current: 1.00000000 BTC → New: 100000000 BTC (or ₿100000000)
Current: 0.00500000 BTC → New: 500000 BTC (or ₿500000)
Current: 0.00010000 BTC → New: 10000 BTC (or ₿10000)
“Historically, 1 BTC = 100,000,000 base units. Under this proposal, “1 bitcoin” equals that smallest unit,” the proposal further explained.
I understand where Carvalho is coming from on this and I can visualize scenarios where some people may find this easier, but I think the thinking here is likely short sighted and doesn’t work in the grand scheme of things.
Over the years I have also heard of other Bitcoiners discussing ways to combat the unit bias of Bitcoin. It seems most Bitcoiners are primarily concerned with how new users often get immediately discouraged if they cannot afford a whole bitcoin, and tend to gravitate towards buying altcoins instead where they can buy at least 1 unit of that coin.
After acknowledging the issues he’s trying to address with this, I personally do not support this BIP. I think it would add more confusion rather than solving it. I think it is ultimately a waste of time and energy for Bitcoin developers to focus on this when there are many other things they could be working on that would add actual value to Bitcoin.
I think Stephan Livera has had a couple really good takes on this, pointing out how silly it would actually be in practice.
Hey I've got this great idea! Instead of 1 pizza with 8 slices, let's just call each slice a pizza!
Just make sure when you go to order your pizza, you now order 8 pizzas instead of 1. Otherwise the staff will get confused.
Just my 2 pizzas.
— Stephan Livera (@stephanlivera) December 14, 2024
Everyone involved in Bitcoin is already accustomed to how it currently is specified, so this is not a real problem most people seem to care about. Carvalho has suggested a feature be implemented where wallets and such can toggle between the current and would-be new way of displaying the units of bitcoin, so there is a transition period where users can get used to his way of specifying units of bitcoin, but I just don’t see why it would be worth making this transition.
It would just feel like a burden on everyone to start explaining this way and potentially slow adoption if anything.
Good luck to the people who would rather explain "there will never be more than 2.1 quadrillion bitcoins" 😂
— Stephan Livera (@stephanlivera) December 14, 2024
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
