REALjasonansley on Nostr: Learning question about #bitcoin If the goal is for #btc to not just be sold (store ...
Learning question about #bitcoin
If the goal is for #btc to not just be sold (store of value) but to be spent (currency, or stated better imho, medium of exchange of value)
This means we have to shift from converting BTC > USD (fiat)… to 1 BTC = 1 BTC
Meaning we have to stop measuring things in fiat values and instead measure (aka price) in satoshis (sats)
This is a huge mindshift and one that I think will take time for many, let along the masses.
It would sort of be like traveling to a country whose prices are denominated in EUR but I transact in USD…my brain struggles to convert or compare the cost in EUR vs USD
(Bear with me I’m getting to my question, but the ground work I laid is important (if I’m understanding things correctly)
So then…if we continue to measure products and services in both fiat and sats,
Q1. will we not just inflate Bitcoin despite its deflationary nature?
Example (using an arbitrary price choice) :
An apple is $2 or 10k sats
If BTC is at $100k USD (fiat value)
And it goes up to $200k, which in essence means the $2 Apple now costs $4;
Q2. would not the sats also have to double to 20k for an Apple? (And therefore pricing things in BTC is also inflationary?
The exception to this would be in the parties transacting truly think only in sats and eliminate any comparison/conversion to fiat
But that is a major #economics mind shift because “what is the value of something (especially in sats)? Like how are thing actually priced in the world beside me just saying “I think this is worth $X”
Ok…I’m starting to ramble so I will stop.
Merely trying to close the loop in my head on how setting prices in sats will also not be inflationary.
(In the equities market price is set essentially by liquidity. The more liquid an underlying is, the tighter the price spread is…that may be part of my answer…the more people that transact in sats; the more efficient pricing becomes…but I don’t think that addresses all of my question)
[apology for rambling…trying to succinctly communicate my thoughts to help attain an answer]
If the goal is for #btc to not just be sold (store of value) but to be spent (currency, or stated better imho, medium of exchange of value)
This means we have to shift from converting BTC > USD (fiat)… to 1 BTC = 1 BTC
Meaning we have to stop measuring things in fiat values and instead measure (aka price) in satoshis (sats)
This is a huge mindshift and one that I think will take time for many, let along the masses.
It would sort of be like traveling to a country whose prices are denominated in EUR but I transact in USD…my brain struggles to convert or compare the cost in EUR vs USD
(Bear with me I’m getting to my question, but the ground work I laid is important (if I’m understanding things correctly)
So then…if we continue to measure products and services in both fiat and sats,
Q1. will we not just inflate Bitcoin despite its deflationary nature?
Example (using an arbitrary price choice) :
An apple is $2 or 10k sats
If BTC is at $100k USD (fiat value)
And it goes up to $200k, which in essence means the $2 Apple now costs $4;
Q2. would not the sats also have to double to 20k for an Apple? (And therefore pricing things in BTC is also inflationary?
The exception to this would be in the parties transacting truly think only in sats and eliminate any comparison/conversion to fiat
But that is a major #economics mind shift because “what is the value of something (especially in sats)? Like how are thing actually priced in the world beside me just saying “I think this is worth $X”
Ok…I’m starting to ramble so I will stop.
Merely trying to close the loop in my head on how setting prices in sats will also not be inflationary.
(In the equities market price is set essentially by liquidity. The more liquid an underlying is, the tighter the price spread is…that may be part of my answer…the more people that transact in sats; the more efficient pricing becomes…but I don’t think that addresses all of my question)
[apology for rambling…trying to succinctly communicate my thoughts to help attain an answer]