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Bitcoin Proposal to Eliminate Decimals – Could This Shake Up Prices?

Bitcoin Proposal to Eliminate Decimals – Could This Shake Up Prices?

CryptoNewsCryptoNews2024/12/15 23:33
By:Arslan Butt
Last updated:
December 15, 2024 05:42 EST

The Bitcoin community is evaluating a proposal that could reshape how its units are measured. Introduced by Bitcoin advocate John Carvalho, the proposal eliminates decimals by redefining 1 BTC as the smallest unit—currently known as 1 Satoshi.

This change would turn what is now 0.00010000 BTC into 10,000 BTCs, fundamentally shifting how Bitcoin’s value is represented.

Carvalho argues that this proposal simplifies Bitcoin’s usage and makes the system easier to understand, particularly for new users. Under the current structure, 1 BTC equals 100 million Satoshis, requiring users to interpret figures with up to eight decimal places.

Today, I submitted a new BIP proposal for public review:

Redefinition of the Bitcoin Unit to the Base Denomination

Abstract
This BIP proposes redefining the commonly recognized "bitcoin" unit so that what was previously known as the smallest indivisible unit becomes the primary…

— John Carvalho (@BitcoinErrorLog) December 13, 2024

“The decimal system is a human-imposed abstraction that creates unnecessary confusion,” Carvalho explained.

By eliminating decimals, Bitcoin would align more closely with its underlying protocol, which represents value as integers, not fractions.

Supporters: Simplicity Can Drive Wider Adoption

Proponents see the proposal as a solution to Bitcoin’s “unit bias”—a psychological hurdle where potential investors perceive BTC as expensive due to its large price per coin. By redefining the smallest unit as Bitcoin itself, the currency could become more accessible to smaller investors.

Mauricio Di Bartolomeo, co-founder of Ledn, believes the change would positively influence Bitcoin’s adoption:

  • Smaller whole numbers would reduce intimidation for first-time buyers.
  • Investors could more easily grasp and communicate BTC values.
  • Simplified units would align with rising market demand and price growth.

Give it 5 to 10 years and we won’t use Sats anymore.

Wallets are already implementing bitcoin, plenty of bitcoiners are advocating for the change and as the price soars higher and higher we will naturally gravitate to using the term bitcoin.

Sorry if you’re married to the…

— Joe Nakamoto ⚡️ (@JoeNakamoto) December 14, 2024

Joe Nakamoto, another advocate, highlighted that wallets are already shifting toward Satoshi-based displays, signaling that change is inevitable. He noted,

“As Bitcoin’s value climbs, the preference for smaller, whole numbers will become more natural.”

Opposition: Risks to Bitcoin’s Scarcity Narrative

Not everyone agrees with the proposal. Critics like Clara Bitcoin caution that redefining Bitcoin’s units could disrupt its foundational narrative—scarcity. The current 21 million BTC cap is central to Bitcoin’s identity as a scarce asset. Redefining the unit to 21 quadrillion “Bitcoins” risks confusing users and making Bitcoin’s fixed supply less compelling.

“The 21 million limit is critical to Bitcoin’s value. Reframing it in smaller units risks diluting this message,” Clara argued.

Opponents also emphasize that shifting terminology could create inconsistency across educational materials, wallets, and exchanges.

Conclusion: Simplicity vs. Narrative Preservation

Carvalho’s proposal brings forward an essential question: Should Bitcoin prioritize simplicity for broader adoption or preserve its established identity? While proponents see this as a logical step toward usability, critics argue that it risks undermining Bitcoin’s scarcity-driven value.

Key Points:

  • The proposal eliminates decimals by redefining 1 BTC as 1 Satoshi.
  • Supporters believe it reduces psychological barriers for new investors.
  • Critics warn it could weaken Bitcoin’s scarcity narrative and create confusion.

As Bitcoin adoption grows, the community faces a choice—modernize its unit system or maintain the status quo.

Bitcoin (BTC/USD) Eyes $105K; Bullish Momentum and Key Breakout Levels

Bitcoin trades within a bullish ascending channel, sustaining a steady upward trajectory. A key pivot point at $101,044 serves as a near-term support level, with BTC holding above the 50 EMA ($99,964), reinforcing a positive bias.

Immediate resistance lies at $102,617, and a breakout above this level could pave the way toward $103,661 and $105,061. On the downside, immediate support sits at $101,044, followed by $99,964 and $98,474.

Bitcoin Proposal to Eliminate Decimals – Could This Shake Up Prices? image 1

Technical indicators highlight bullish momentum: the RSI at 62 signals strength without overbought conditions, while the 50 EMA trends upward, aligning with the channel’s support line.

Conclusion: The ascending channel bolsters bullish continuation prospects, especially above $101,000. A break of $102,600 could accelerate the rally toward higher resistance levels.

Key Insights:

  • Bitcoin trades within a bullish channel; immediate resistance at $102,617.
  • Key pivot support holds at $101,044, followed by the 50 EMA at $99,964.
  • RSI signals upward momentum, supporting further gains toward $105,061.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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