Change the unit of a Bitcoin into 100 million units? This is the idea supported by a new proposal from BIP, which would like to facilitate the adoption of Bitcoin by modifying its basic unit. This initiative raises questions about its consequences on the ecosystem and the fundamental principles of Bitcoin.
2.1 quadrillion Bitcoins rather than 21 million
Have you ever wondered if the soaring price of Bitcoin could slow down its adoption? What if the fact that it displays high amounts in fiat currencies could discourage certain buyers? Probably not, and that’s understandable. However, part of the Bitcoin community believes that this is a real problem.
In recent days, several influential figures, mainly on the social network They also consider that it would be more complex to manage amounts expressed in many decimal places rather than in whole units..
???? To go further – Is Bitcoin (BTC) a currency?
John Carvalho, CEO of Synonym, the company behind the Bitkit wallet, recently presented a BIP (Bitcoin Improvement Proposal) titled “Redefinition of the Bitcoin Unit to the Base Denomination”or in French, “Redefinition of the Bitcoin unit to the base denomination”.
Carvalho and supporters of this idea are well aware that a Bitcoin (BTC) is divisible into 100 million units called “satoshis”, in homage to the creator of Bitcoin, Satoshi Nakamoto. However, they believe that redefining the basic unit would simplify its use and make Bitcoin more accessible to the general public.
For example, as of today, one million dollars is approximately 9.559 Bitcoins, or 955,900,000 satoshis, while 10 dollars is 0.00009559 BTC, or 9,559 satoshis. With this new BIP proposal, one million dollars would correspond to 955,900,000 Bitcoins, and 10 dollars to 9,559 Bitcoins.
Buy cryptos on eToro
Advertising – Investing in cryptocurrencies is offered by eToro (Europe) Ltd as a PSAN registered with the AMF. Investing in cryptoassets is very volatile. There is no consumer protection. Investing is risky (learn more)
Why might this redefinition be a bad idea?
First of all, it is worth pointing out that the denomination in BTC or satoshis mainly depends on how the wallets display the units. Most wallets offer users the option to choose between presentation in BTC or satoshisas is the case with applications such as Blue Wallet or Green Wallet.
Other wallets, notably those based on the Lightning Network, such as Blink and Wallet of Satoshi, choose to display balances in satoshis by default.. These wallets, intended for daily use for modest amounts, favor this approach to simplify the user experience.
Displaying satoshis in Bitkit, Wallet of Satoshi, Blink and Blue Wallet.
The Bitkit wallet, developed by John Carvalho, already adopts a display based on satoshis, without explicitly using this term. Instead, it displays a capital “B” in front of the amounts to simplify the user experience.
Changing the base unit of Bitcoin, however, would cause far more confusion than it would bring clarity. Since its inception, the 21 million unit limit has been an iconic feature of Bitcoin. Replacing this limit with 2.1 quadrillion could sow doubt that the supply of Bitcoin is indeed capped.
???? Also read in the news – Bitcoin exceeds 100,000 euros – Will it ever stop?
Furthermore, a debate between 2 denominations, satoshis (1/100,000,000 BTC) and bits (1/1,000,000 BTC), animated the community for several years. This debate now seems to be resolved in favor of satoshis, which offer a more intuitive and simple approach.
The only potential limitation of satoshis would arise if 0.00000001 BTC was no longer enough to represent certain amounts. For example, if the price of BTC reached $100 million, a likely scenario in a situation of dollar hyperinflation, it would be impossible to exchange pennies for BTC. However, this problem is already solved thanks to the Lightning Network, which allows exchanges in millisats (1/1000 satoshi, or 1/100 billion BTC).
Ledger: the best solution to protect your cryptocurrencies ????
Source : GitHub
La Newsletter crypto n°1 ????
Receive a summary of crypto news every day by email ????
Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission.
Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I just have to share my knowledge and convey the passion I have for Bitcoin. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
365 articles
