Last week, long-time Bitcoin user John Carvalho foot A new Bitcoin Improvement Proposal (BIP) aims to address the problem of unit bias that many people encounter when first finding Bitcoin.
“The BIP proposes to redefine the commonly recognized unit of ‘bitcoin’ so that what was previously known as the smallest indivisible unit becomes the base reference unit,” explains Carvalho. “Under this proposal, one bitcoin is defined as the smallest unit, eliminating the need for decimal places. By making the integral unit the standard, BIP aims to simplify user understanding, reduce confusion, and align on-chain values directly with their displayed representation.” .
The view of how Bitcoins are displayed will go from its current state to the following:
Current: 1.00000000 BTC → New: 100,000,000 BTC
Current: 0.00500000 BTC → New: 500,000 BTC
Current: 0.00010000 BTC → New: 10,000 BTC
“Historically, 1 Bitcoin = 100,000,000 base units. Under this proposal, 1 Bitcoin is equal to the smallest unit,” the proposal further explained.
I understand where Carvalho is coming from on this and I can imagine scenarios where some people might 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’ve also heard other Bitcoin users discuss ways to combat Bitcoin unit bias. Most Bitcoin users seem to be primarily concerned with how new users will be immediately frustrated if they cannot purchase a full Bitcoin, and tend to gravitate towards purchasing altcoins instead where they can purchase at least one unit of that currency.
After acknowledging the issues he is trying to address with this, I personally do not support this BIP. I think that would add to the confusion rather than resolve it. I think it’s ultimately a waste of time and energy for Bitcoin developers to focus on this when there are so many other things they could be working on that would actually add value to Bitcoin.
I think Stehpan Livera had some really good advice about this, pointing out how ridiculous it actually is.
Hey I’ve got this great idea! Instead of one 8-slice pizza, let’s call each slice a pizza!
Just make sure when you go to order your pizza, you are now ordering 8 pizzas instead of one. Otherwise, employees will be confused.
Only 2 pizzas.
– Stefan Livera (@stephanlivera) December 14, 2024
Everyone involved in Bitcoin is already used to how it is currently defined, so this is not a real issue that most people seem to care about. Carvalho has suggested implementing a feature where wallets and the like can switch between the current way and the new way of displaying Bitcoin units, so there is a transition period where users can get used to his way of identifying Bitcoin units, but I don’t see why it would be worth making that switch.
It would be a burden on everyone to start explaining this way and would likely slow adoption if anything.
Good luck to people who prefer clarification "There will never be more than 2.1 quadrillion Bitcoins" 😂
– Stefan Livera (@stephanlivera) December 14, 2024
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.