John Carvalho, CEO of Bitcoin software company Synonym, has submitted a Bitcoin Improvement Proposal (BIP) that would effectively abolish the long-standing unit known as the “satoshis” (or “sats”) — the smallest denomination of bitcoin (BTC). In its place, Carvalho proposes that the smallest unit be referred to simply as “one bitcoin.” The move, outlined in a BIP draft last week, seeks to simplify user perception and reduce mental friction as Bitcoin’s price surges past $100,000 (as of the time of publication, around $107,000).
The Problem: Cognitive Overhead of Dual Naming
Each bitcoin is divisible into 100 million satoshis. For years, the community has used both terms interchangeably: a transaction of 0.01 BTC is often called 1 million sats. Carvalho argues that this dual system creates unnecessary cognitive overhead, especially as retail investors and newcomers find it increasingly difficult to purchase a whole bitcoin. “By redefining the smallest unit as ‘one bitcoin,’ this BIP aligns user perception with the protocol’s true nature,” Carvalho writes. “It reduces cognitive overhead, ensures users understand Bitcoin as counting discrete units, and ultimately improves educational clarity and user experience.”
The Proposal: Redefining the Base Unit
Rather than altering the underlying protocol, the BIP recommends that all user interfaces, wallets, and exchanges display amounts in “bitcoins” only, where one “bitcoin” equals the current smallest unit (i.e., 1 sat). This means that what was previously 0.00000001 BTC would now be displayed as “1 bitcoin.” Carvalho acknowledges the radical nature of the change, suggesting a transition period of at least one year. During this period, both old and new configurations would be shown side by side, gradually phasing out the old notation once adoption reaches a sufficient threshold. Synonym’s own Bitkit wallet already operates using this “integer-only” configuration, according to the BIP draft.
Why Now? The Price Catalyst
Carvalho’s proposal gains traction as Bitcoin’s price skyrockets, making it impractical for average users to think in whole bitcoins. If Bitcoin reaches the predicted million-dollar mark within a few years, toggling between bitcoin and sats will become exponentially more inconvenient. By renaming the smallest unit “bitcoin,” the proposal seeks to future-proof the user experience against extreme price appreciation.
Community Reaction: Ridicule and Skepticism
Despite the logical underpinning, the Bitcoin community has overwhelmingly rejected the idea. Popular podcaster Stephan Livera mocked the proposal on X (formerly Twitter): “Hey, I’ve got this great idea! Instead of one pizza with eight slices, let’s just call each slice a pizza. Just make sure when you go to order your pizza, you now order eight pizzas instead of one,” he wrote, ending with “Just my two pizzas.” The analogy highlights the potential confusion: saying “I have 1,000 bitcoins” could mean a tiny fraction of a current BTC, making everyday language deeply misleading.
Other critics point out that the proposal does not change the underlying code, meaning two different “bitcoins” (the current whole coin versus Carvalho’s proposed unit) would coexist, creating a worse confusion. Some also argue that satoshis already serve the role of small units effectively, and that renaming them would only add short-term chaos.
Conclusion: A Radical yet Thought-Provoking Proposal
While unlikely to be adopted in its current form, Carvalho’s BIP has ignited a necessary debate about Bitcoin’s unit naming scheme in an era of extreme price appreciation. As Bitcoin matures into a global asset, the question of how to best represent its value across different price levels will only grow more pressing. For now, the community appears content to stick with satoshis — but the conversation around unit simplification is far from over.