Updated on:12/24/2025 05:05 PM 
The cryptocurrency landscape is witnessing a pivotal moment as a revolutionary proposal to redefine Bitcoin's smallest unit gains momentum among industry leaders. The controversial BIP 177 initiative, introduced by Synonym CEO John Carvalho, suggests replacing 'satoshi' with 'bit' as the base denomination for Bitcoin transactions.
This ambitious Bitcoin protocol modification aims to transform how users interact with the world's leading cryptocurrency. Under the current system, 1 BTC equals 100 million satoshis. However, Carvalho's proposal inverts this relationship, designating 1 satoshi as '1 bitcoin,' thereby converting today's 1 BTC into 100 million 'bits' in the new framework.
Practical applications of this change would be significant: a transaction of 0.0001 BTC would be expressed as 10,000 bitcoins, while holding 10.23486 BTC would translate to 1,023,486,000 bitcoins in the proposed system.
The primary motivation behind this Bitcoin denomination overhaul is user experience enhancement. Proponents argue that the current satoshi terminology creates unnecessary cognitive barriers for newcomers to the cryptocurrency ecosystem, potentially hindering mainstream adoption.
The Bitcoin community remains split on this potential transformation, with influential voices emerging on both sides of the debate.
Twitter co-founder and prominent Bitcoin advocate Jack Dorsey has publicly endorsed the proposal, suggesting that the term 'sats' creates psychological friction preventing new users from fully embracing cryptocurrency technology.
Meanwhile, JAN3 CEO Samson Mow supports the concept of transitioning to bits but advocates for a strategic approach. He recommends implementing this change only when Bitcoin reaches dollar-satoshi parity, at which point he suggests introducing additional decimal places called 'satcents' to maintain transaction precision.
However, industry experts express legitimate concerns. Yu Xian, founder of blockchain security firm Slowmist, cautions that such a dramatic shift could lead to widespread misinterpretation and technical confusion, particularly for newcomers navigating the already complex cryptocurrency landscape.
Despite the controversy, Carvalho maintains that critics haven't thoroughly examined the implications of BIP 177, suggesting that deeper engagement with the proposal might reveal its potential benefits for the broader cryptocurrency ecosystem.
