Most people today have heard of Bitcoin. Despite mixed opinions, news about it regularly appears across various media outlets. For the vast majority, it's challenging to understand why a single "unit" of Bitcoin could be worth over $10,000, or roughly 70,000 RMB. While whether Bitcoin is truly worth that much isn't the focus here, it's worth noting that in Chinese discussions about Bitcoin, many people tend to use the word "个" (gè, meaning "a piece" or "an item") as the measure word for Bitcoin. This habit is often a source of significant misunderstanding.
A little thought reveals that "个" is unsuitable as a measure word for currency or other items requiring precise measurement. We wouldn't say "a piece of Renminbi" or "a piece of gold." Using "个" for Bitcoin can easily lead to confusion. For instance, many people new to Bitcoin mistakenly believe it must be purchased in whole units. While the reasons for this misunderstanding are varied, part of the blame lies with the use of the word "个." In Chinese, "个" is generally used for relatively "whole" concepts without implying size—you can say "an apple" or "the Earth." Many perceive Bitcoin's unit price as prohibitively expensive, not realizing that the so-called "个" is, in the Bitcoin system, a very large unit.
Conversely, there's another, now less common, misunderstanding. The use of "个" in Chinese once led some to question Bitcoin's "infinitely divisible" nature, interpreting it as meaning there's no upper limit to the number of units. For example, if one "个" of Bitcoin can become ten "个" of 0.1 Bitcoin, some in a Chinese context might think one whole unit has become ten whole units. The word "个" makes it easy to overlook the actual size of the unit, creating this type of confusion.
Therefore, the best way to eliminate these misunderstandings in Chinese contexts is to avoid using "个" to describe Bitcoin. Since "Bitcoin" is itself a unit, one can simply use a number followed by "Bitcoin," as is common when discussing currencies. While this might feel unnatural initially, the potential benefits for clearer understanding far outweigh the minor adjustment.
Understanding Bitcoin's Native Units
In English-language contexts, people use "BTC" directly as the unit, saying "1 BTC." Many are also aware that the smallest unit of Bitcoin is the "satoshi" (or "聪" in Chinese), named after Bitcoin's creator, Satoshi Nakamoto. 1 BTC equals 100,000,000 satoshis, meaning one Bitcoin is 100 million sat. Furthermore, according to the International Organization for Standardization (ISO) currency code standard, Bitcoin's official unit is designated as XBT. This can be observed on major European and American exchanges, which often use XBT instead of BTC.
Beyond satoshis, there are several other smaller, commonly recognized units:
- cBTC (centi-bitcoin or bitcent): 1 cBTC = 0.01 BTC
- mBTC (milli-bitcoin): 1 mBTC = 0.001 BTC
- μBTC (micro-bitcoin) or bit: 1 μBTC = 1 bit = 0.000001 BTC
- Satoshi (sat): 1 satoshi = 0.00000001 BTC
The Psychological Power of Pricing
Bitcoin is often compared to gold, considered "digital gold." While comparing Bitcoin's current scale to gold's might be premature, comparing their units is insightful.
Bitcoin has a hard cap of 21 million BTC. The total amount of gold ever mined is estimated to be around 170,000 tonnes. If we directly compare the total quantities, 1 BTC is analogous to a unit weighing hundreds of kilograms, showing that 1 BTC is a very large unit. Gold prices are commonly quoted per gram, suggesting that using smaller units might be more practical for everyday Bitcoin pricing. Given the vast difference between "hundreds of kilograms" and "grams," the bit (μBTC) emerges as a strong candidate.
In fact, calls to adopt the bit as a standard display unit date back to 2013. Bitpay was among the first major companies to support it, followed later by platforms like Coinbase, which allowed users to select bits for price display. Since 2017, there have been renewed pushes for the community to adopt bits as the default. Today, many exchanges offer users the option to view prices in bits, though it is rarely the default setting.
At a price of $10,000 per BTC, 1 bit is worth $0.01, or approximately ¥0.07. This instantly makes the price seem much more approachable. Skeptics might argue this is merely a superficial change, like the fable of offering three chestnuts in the morning and four in the evening versus four in the morning and three in the evening. But is the effort to change the unit really worth it?
The impact of price presentation is significant. The most famous example is "charm pricing" (or "odd-even pricing"), where a vast number of商品 prices end in .99 or similar figures (e.g., $19.99, ¥1499). Some have dismissed this tactic as pointless, yet high-profile executives like Apple's former SVP Ron Johnson and smartphone entrepreneur Luo Yonghao have tried abandoning it, only to be forced by market reality to revert. Both theoretical analysis and market results prove that these tiny numerical adjustments significantly influence consumer purchasing behavior. Therefore, changing Bitcoin's display unit to drastically lower the visible price could have a substantial psychological impact on potential investors.
Furthermore, many exchanges and market data apps are designed based on stock trading systems. By default, these systems display the price per share—the smallest, indivisible unit of a stock. This ingrained mindset leads many familiar with stocks to apply the same logic to Bitcoin, assuming the displayed price is for the smallest possible trading unit. A unit price of ¥70,000+ is enough to deter many potential newcomers.
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Precedent in Traditional Markets: Stock Splits
Changing display units is not uncommon in traditional finance, where it manifests as a stock split. When a company's share price rises continuously, the high price can dampen the enthusiasm of investors, particularly retail traders. The company may then decide to split its stock (e.g., a 10-for-1 split), effectively reducing the nominal price per share while maintaining the company's total market capitalization. The logic behind this is identical to changing Bitcoin's default display unit: making the asset appear more affordable and accessible.
Community Debates and Leadership Perspectives
The debate within the Bitcoin community on which unit to adopt is ongoing. Bobby Lee, co-founder of the BTCC exchange, has repeatedly proposed the industry adopt mBTC (1 mBTC = 0.001 BTC). At a $9,000 BTC price, this would display as 9 mBTC. However, this proposal hasn't gained universal traction. Many aren't opposed to a unit change in principle but have different suggestions. Some advocate for using **satoshi** directly, while a significant number propose using **bits** (μBTC). At a $9,000 BTC price, 1 bit would be worth $0.009. Proponents of bits argue that changing an industry standard is a major undertaking, and if Bitcoin's price continues to rise, mBTC could also become too large a unit, whereas bits would remain practical for much longer.
When asked for this article, Leon Li, founder and chairman of Huobi, indicated he is not personally opposed to a unit change, stating it "mainly depends on market acceptance. If implemented, a user survey and vote would likely be conducted first."
Frequently Asked Questions
Q: What is the smallest unit of Bitcoin?
A: The smallest unit is a satoshi, named after Bitcoin's creator. One satoshi equals 0.00000001 BTC. There are 100 million satoshis in a single Bitcoin.
Q: Why would changing the display unit matter if the value is the same?
A: It's largely about psychology and perception. A lower nominal price (e.g., 10,000 bits instead of 0.01 BTC) appears more affordable and less intimidating to new investors, potentially removing a barrier to entry.
Q: What is the official ISO code for Bitcoin?
A: The International Organization for Standardization (ISO) has assigned Bitcoin the currency code XBT. You will often see this used on major traditional finance platforms and exchanges.
Q: Are there any exchanges that currently use bits or mBTC as the default?
A: While most major exchanges default to BTC, many offer users the option to change their price display settings to bits, mBTC, or satoshis in their preferences. It is rarely the default setting.
Q: How does a Bitcoin unit change compare to a stock split?
A: They are conceptually similar. Both actions change the nominal unit price without altering the underlying value of the asset. A stock split makes shares seem cheaper, while a Bitcoin unit change makes a fraction of a BTC seem like a complete, affordable unit.
Q: Could this change really trigger a bull market?
A: By itself, it is unlikely to be the sole trigger. However, by making Bitcoin seem more accessible and lowering the psychological barrier for new investors, it could contribute to increased adoption and demand, which are key factors that can drive a bull market.
Conclusion: A Key to Wider Adoption?
If the industry collectively moved to adopt a smaller unit like the bit, it could significantly impact those who are still on the sidelines or lack understanding. At the very least, it would provide a strong nudge for investors who are hesitant solely because of Bitcoin's high unit price. It's evident that Bitcoin's price has struggled to break out of a long trough, largely due to a lack of new investors. Unlike the period before the last major bull run (around 2015), Bitcoin's current high unit price is likely scaring away many potential entrants. A necessary condition for a new bull market is the influx of a large number of new investors. Adjusting Bitcoin's display unit could very well become the key that helps unlock that door.