plebiANON on Nostr: You have a key fundamental flaw in your reasoning. If Bitcoin goes from $100k to ...

You have a key fundamental flaw in your reasoning. If Bitcoin goes from $100k to $200k the price of the apple in sats will be cut in half. Unless the seller of the apple leaves the price of his apple the same in sats. However, because prices fall to the marginal cost of production, that apple seller will rapidly be starved out of the market by all other apple sellers who adjusted their prices downward accordingly. I could price my house at 8 Bitcoin forever, but no one would buy my house when the price of Bitcoin went up. They’d find a different home seller that repriced their home accordingly.

Bottom line, priced in sats, the cost of items go down because we become better at producing them and there is a finite supply (21 million) of the money that everything will be priced in.