Bitcoin unit denomination does not need to change

Last week, veteran Bitcoiner John Carvalho inserted a new bitcoin Improvement Proposal (BIP) aimed at addressing the unitary bias issue that many people face when encountering bitcoin for the first time.

“This BIP proposes to redefine the commonly recognized unit “bitcoin” so that what was previously known as the smallest indivisible unit becomes the primary reference unit,” explains Carvalho. “Under this proposal, a bitcoin is defined as the unit smaller, eliminating the need for decimals. By making the integral unit the standard measurement, this BIP aims to simplify user understanding, reduce confusion, and align string values ​​directly with their displayed representation.”

The display of how bitcoin units are displayed would change from its current state to this:

Current: 1,00000000 btc → New: 1,00000000 btc

Current: 0.00500000 btc → New: 500000 btc

Current: 0.00010000 btc → New: 10000 btc

“Historically, 1 btc = 100,000,000 base units. According to this proposal, “1 bitcoin” is equivalent to the smallest unit,” the proposal explains.

I understand where Carvalho is coming from on this and I can envision scenarios where some people might find this easier, but I think the thinking here is probably short-sighted and doesn't work in the grand scheme of things.

Over the years, I have also heard from other Bitcoiners discussing ways to combat bitcoin's unitary bias. It seems that most Bitcoiners are mainly concerned about how new users are often immediately put off if they cannot afford a full bitcoin and tend to gravitate towards purchasing altcoins where they can buy at least 1 unit of that coin.

After recognizing the problems you are trying to address with this, I personally do not support this BIP. I think it would add more confusion instead of solving it. I think it's ultimately a waste of time and energy for bitcoin developers to focus on this when there are plenty of other things they could be working on that would add real value to bitcoin.

I think Stehpan Livera has had a couple of really good takes on this, pointing out how silly it would be in practice.

<blockquote class="twitter-tweet”>

Hey, I have this great idea! Instead of 1 pizza with 8 slices, let's call each slice a pizza!

Just make sure that when you go to order your pizza, you now order 8 pizzas instead of 1. Otherwise the staff will be confused.

Just my 2 pizzas.

—Stephan Livera (@stephanlivera) <a target="_blank" href="https://twitter.com/stephanlivera/status/1868000232757227792?ref_src=twsrc%5Etfw”>December 14, 2024

Everyone involved in bitcoin is already used to how it is currently specified, so this is not a real issue that seems to worry most people. Carvalho has suggested implementing a feature where wallets and such can toggle between the current and possible new way of displaying bitcoin units, so there is a transition period where users can get used to their way of specifying units of bitcoin, but I just don't see why it would be worth making this transition.

It would be a burden on everyone to start explaining this way and, if anything, it would slow down adoption.

<blockquote class="twitter-tweet”>

Good luck to people who prefer to explain "there will never be more than 2.1 trillion bitcoins"

—Stephan Livera (@stephanlivera) <a target="_blank" href="https://twitter.com/stephanlivera/status/1867886267486376381?ref_src=twsrc%5Etfw”>December 14, 2024

This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of btc Inc or bitcoin Magazine.

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