Author: John Carvalho
Source: https://bitcoinerrorlog.medium.com/bip-177-for-dummies-3993db575490
Changing the numbers on the price tag does not change the soul of Bitcoin... and will make it easier for friends who come to this world after us.
What's Urgent?
Cut to a cafe where the price board shows the price of a coffee as:
0.0000123 BTC or ₿1230
BIP-177 suggests displaying the second label by default, because it is simpler, can show the currency type, and is consistent with how Bitcoin actually works (Bitcoin protocol only uses integers and does not use fractions. So, the current form with decimal points is arbitrary!)
Why Spend Bitcoin?
Michael Saylor's "never sell" mantra can protect your long-term savings, but a currency cannot be just a collectible. Each transaction fulfills three functions:
- Demonstrate real demand. When a cafe accepts Bitcoin and people actually pay with Bitcoin, the market can discover the real price.
- Build a circular economy. The more you spend, the less you rely on fiat, shady exchanges, and despicable KYC.
- Enhance security. People's daily spending keeps blocks full, fees fluctuating, and miners incentivized to continue investing after block subsidies are exhausted.
Hoarding is a good savings strategy, but if you never spend Bitcoin, doesn't it mean you don't 100% own it?
BIP-177 Proposal Contents
Remove decimal points:
This was always an illusion; Bitcoin is actually indivisible.
Rename the basic unit:
Call the integer actually tracked in the blockchain system "Bitcoin", simple and clear!
Leave the "BTC" label to traditional finance:
1 "BTC" equals 100,000,000 new form of "Bitcoin".
Add a one-click toggle function in wallet and exchange interfaces:
One-click switch between integer form (₿) and traditional decimal form (BTC)
Biggest Concerns and Fact Check
"You'll destroy the 'sats' culture!"
People can still say "stack sats" culturally. Technically, they are Bitcoin, but language is free. BIP-177 only proposes to standardize UI labels.
"You're diminishing Satoshi Nakamoto!"
Satoshi himself proposed that as long as the price increases, the current arbitrary decimal points can be changed at any time. In the early days of Bitcoin, no one used "sats" to refer to this magnitude, and Satoshi never requested it.
"People will be scammed!"
This might be a risk, but if you clearly see the magnitude difference between 1 "BTC" and ₿ 100,000,000, you'll know it's impossible to scam, as the price difference in the middle would be millions of dollars. *There's also a "dust limit" of 546 units in the Bitcoin system, meaning all transactions must be greater than ₿ 546!*
"People will be confused!"
If you can understand, why can't they? There will always be jerks lying about Bitcoin, we can't stop moving forward because of that!
"Wallet software will crash!"
As long as a wallet can track sats, it can track integers. Displaying the amount as "₿1230" instead of "0.00001230 BTC" is just a UI change. Returning to the old display form only requires an option box.
"It will have a big impact on price!"
Exchanges can already switch between USD, EUR, and sats (as a unit of amount). Mapping BTC to ₿ is just a database multiplication, not a fork.
Isn't This Unnecessary?
Tiny UX adjustments can have significant effects:
- Emoji search doesn't change keyboard layout, but now billions of people use this feature daily.
- Changing Roman numerals to Arabic numerals on books improved people's numerical literacy.
- Many people have unit bias, thinking Bitcoin is "too expensive" (they don't understand the conversion between BTC and Bitcoin).
- Many people think Bitcoin uses fractions, but it actually doesn't!
Bitcoin wins when ordinary people can understand it at a glance. BIP-177 is just a low-risk adjustment that can permanently eliminate the 8-digit decimal barrier.
FAQ for Curious Friends
Will I lose my sats/Bitcoin?
No. The Bitcoin blockchain ledger will still show the same integers. We're just changing the screen labels.
Will the BTC supply cap change?
Of course not. Consensus rules and the "BTC" label remain the same.
Do miners or nodes need to upgrade?
No. This is unrelated to consensus rules. Only wallet user interfaces might need to add a button.
Can I ignore this new unit?
Yes! Use BTC, sats, whatever you want!
Conclusion
The core of Bitcoin is immutable code. BIP-177 just hides the decimal point, making it easier for future Bitcoiners to understand. Let's try it now!
(End)
