BIP-323: Redefining the Bitcoin Unit

Last week, long-time Bitcoiner John Carvalho introduced a new Bitcoin Improvement Proposal (BIP) aimed at addressing the unit bias issue many people face when first finding bitcoin.

Last week saw long-time Bitcoiner John Carvalho unveil a new Bitcoin Improvement Proposal (BIP) that aims to tackle the unit bias issue encountered by many when they first discover bitcoin.

“This BIP proposes redefining the commonly recognized "bitcoin" unit such that the smallest indivisible unit, previously recognized, becomes the primary reference unit,” Carvalho explained. “Under this proposal, one bitcoin is defined as that smallest unit, rendering decimal places obsolete. By establishing the integral unit as the standard measure, this BIP aims to simplify user comprehension, reduce points of confusion, and align on-chain values directly with their displayed representation.”

Currently, the display of units of bitcoin would shift from its current state to this:

Current: 1.00000000 BTC → New: 100000000 BTC

Current: 0.00500000 BTC → New: 500000 BTC

Current: 0.00010000 BTC → New: 10000 BTC

“Historically, 1 BTC = 100,000,000 base units. Under this proposal, "1 bitcoin" equals that smallest unit,” the proposal further outlined.

I can appreciate where Carvalho is coming from with this, and I can envision scenarios where some 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 have also heard other Bitcoiners discussing ways to combat Bitcoin's unit bias. It seems that most Bitcoiners are primarily concerned with how new users often get discouraged quickly if they can't afford a whole bitcoin and tend to gravitate toward buying altcoins instead, where they can buy at least 1 unit of that coin.

After acknowledging the issues he’s trying to address with this, I personally do not support this BIP. I think it would add more confusion rather than solving it. I think it is ultimately a waste of time and energy for Bitcoin developers to focus on this when there are many other things they could be working on that would add actual value to Bitcoin.

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

Everyone involved in Bitcoin is already used to how it currently gets specified, so this is not a real problem that most people seem to care about. Carvalho has suggested a feature be implemented where wallets and such can toggle between the current and would-be new way of displaying the units of bitcoin, so there is a transition period where users can get used to his way of specifying units of bitcoin, but I just don’t see why it would be worth making this transition.

It would just feel like a burden on everyone to start explaining this way and potentially slow adoption if anything.

This article is a Take. Opinions expressed are entirely the author's and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.