Dust detection is an important area of research, especially for determining the space environment in Earth orbit. Satellites such as the GPS constellation are vital for millions of people everyday and dust impacts on spacecraft can lead to catastrophic failure when particles are large enough (Caswell et al., 1995, https://doi.org/10.1016/0734-743X(95)99843-G). However, dust particles micron‐sized or smaller can be detected due to the plasma cloud that is released from their impact (Meyer‐Vernet, 1983, https://doi.org/10.1029/JA088iA10p08081). We investigate the practicality of using voltage power spectroscopy on a CubeSat with dipole antennas to measure the dust particles from such collisions and to characterize the Earth's ionosphere from 300‐ to 1,500‐km altitude. We find that the average power spectrum due to dust from space debris and interplanetary sources is at least 6 orders of magnitude smaller than the shot noise spectrum. Within 10 s of a 2009 Iridium‐COSMOS type satellite collision the average power spectrum due to dust impacts is at least 8 orders of magnitude smaller. Detection using the power spectrum is only possible for large enough single‐particle impact events, which are rare. For the average spectrum to be 3 times larger than the shot noise spectrum, the particle would need to be at least 5.4, 4.0, and 3.2 μm in diameter for a polar orbit at 300‐, 800‐, and 1,500‐km altitude, respectively, which corresponds to one hit every 2,150, 110, and 225 min, respectively. Direct time domain observation of the voltage signal of dust impact plasma clouds would be a more effective method for measuring dust particles in the ionosphere.