₿eni₿idi₿ici on Nostr: “Implying value from a quantity measure is not the best, but that was all we ever ...
“Implying value from a quantity measure is not the best, but that was all we ever had before #bitcoin”
Just because there is a quantity of something does not infer a value—value is derived from what two parties determine it to be, regardless of quantity issued. You don’t exchange EUR for JPY based on your own knowledge of how much of each currency is in circulation. Currencies have relative values between each issuer based on rates, inflation, liquidity, credit, purchasing power, ease of exchange/arbitrage, and most recent traded exchange rates, quantity of the currency issued has impact to all of these and is important
However with #bitcoin we now not only have the ability to measure #fiat money and currencies vs. a limited supply (which reaches back to quantity,) but also as an improved sovereign control of value, uncensorable, anonymity, fungibility, less financial friction and inefficiencies
Yes, many people use quantity as the measure, but reiterating the point it is not the only way as before; #bitcoin ‘s other features have value, too. Over time (years? decades? centuries?) as #bitcoin settles as the standard and #fiat is measure in #bitcoin, then we might have good methods to quantify each contributing aspects’ value
Just because there is a quantity of something does not infer a value—value is derived from what two parties determine it to be, regardless of quantity issued. You don’t exchange EUR for JPY based on your own knowledge of how much of each currency is in circulation. Currencies have relative values between each issuer based on rates, inflation, liquidity, credit, purchasing power, ease of exchange/arbitrage, and most recent traded exchange rates, quantity of the currency issued has impact to all of these and is important
However with #bitcoin we now not only have the ability to measure #fiat money and currencies vs. a limited supply (which reaches back to quantity,) but also as an improved sovereign control of value, uncensorable, anonymity, fungibility, less financial friction and inefficiencies
Yes, many people use quantity as the measure, but reiterating the point it is not the only way as before; #bitcoin ‘s other features have value, too. Over time (years? decades? centuries?) as #bitcoin settles as the standard and #fiat is measure in #bitcoin, then we might have good methods to quantify each contributing aspects’ value