Jack Dorsey Backs Renaming Bitcoin's Smallest Unit 'Bits,' Calls 'Satoshi' Confusing

Twitter founder Jack Dorsey has proposed a change to Bitcoin's BTC/USD base unit satoshi, claiming it would make the decentralized currency easier to use as a payment tool.

What Happened: In a X post on May 18, Block CEO Jack Dorsey reignited the ongoing debate over Bitcoin's smallest unit, advocating for a shift away from the term "satoshi" in favor of “bits.”

Dorsey argues the terminology change would make Bitcoin more accessible and intuitive for everyday users.

The proposal is based on BIP-177, introduced by Synonym CEO John Carvalho, which suggests redefining 1 satoshi as 1 bitcoin.

Under this framework, the current 1 BTC would equal 100 million "bitcoins," effectively eliminating decimal formatting in Bitcoin displays and encouraging the use of whole numbers instead.

Dorsey says this cosmetic change could:

• Simplify user education and wallet interfaces
• Reduce perceived psychological barriers, especially when users compare BTC's high price to cheaper altcoins
• Avoid confusion and panic over inflation or price drops caused by misunderstanding unit nomenclature

He also pointed out that Satoshi Nakamoto himself had once implied that such a naming adjustment could be purely cosmetic.

While the idea stirs debate, it has no impact on Bitcoin's underlying protocol. Market reaction remains muted, with BTC trading around $102,786.

Pushback from the Community

Critics argue that users already grasp fractional units, like cents in a dollar, and removing the term “satoshi” could introduce unnecessary chaos without coordinated adoption from wallets, exchanges, and other infrastructure providers.

Byte Federal's Director of Product Michelle Weekley pushed back, saying: “People understand cents in a dollar; they will understand sats in a Bitcoin.”

Meanwhile, Swan Bitcoin CEO Cory Klippsten labeled the push for bits as a “high-time-preference mindset,” focused more on short-term usability than long-term value perception.

He stressed that just like gold and BTC itself, satoshis will eventually earn their place through patience and understanding.

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