Is it possible to determine the value of one side of a bitcoin transaction without using fiat as a reference in that moment? Ex. If someone says I’ll sell you this house for 10 BTC, isn’t the only way to determine if it’s a good trade is by mentally converting the 10 BTC to fiat and then comparing it to the market rate for similar houses?
I’m writing this because I keep getting asked to comment on Saylor/Saif video even though my position hasn’t changed.
The natural state of the free market is deflation which means all prices fall forever in Bitcoin (assuming it stays decentralized and secure)
Free market economies are more productive meaning faster deflation (or real wealth gains by falling prices)
That system is incompatible with an inflationary monetary system meaning one of those systems must fail.
Either:
1) A system based on truth, hope, and abundance for all 8 billion people on the planet driven by a free market economy and all prices fall relative to bitcoin forever. This means Bitcoin is used as a medium of exchange and freedom tech spreads to the world through lightning, Liquid, Fedimint, Cashu, etc.
OR
2) A control system. An extractive rent seeking system that is NOT the free market (similar to the one we have had for 5000 years that resets every 100 or so years through war) continues to centralize by having you believe price of bitcoin is going up in fiat which makes the surveillance state stronger. This eventually centralizes Bitcoin - custodians, media, regulation (funded from the same manipulation of money) where it is attacked from layer 2. (Similar to gold)
While these ideas may “seem” compatible in the short term because you want Bitcoin to go up in fiat. What it really means is that you are giving your energy and strength to the system centralizing the world by converting Bitcoin to Fiat….to then measure prices.
Quite simply - If Bitcoin is only a store of value, it fails as a store of value.
Ps - It won’t fail. #1 is inevitable in time because too many (and more each day) have seen behind the curtain and are determined to build path #1.
Many of you here - the people that inspire me every day. You make a difference with every word, thought and action.
Almost did that in all caps per nostr:npub1qny3tkh0acurzla8x3zy4nhrjz5zd8l9sy9jys09umwng00manysew95gx because it’s so important.
Referring to # 1 above…..There is no second best.
Discussion
Any guidance on this question please nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe ? I’ve been wondering about this same thing 🤔
I’m hoping to try to think/price my world in the new system (Bitcoin)
You don’t have to think your selling the house for money, in that case is obvious to make the fiat reference since 99,9% of the houses are sold in fiat. Instead think about selling it for value, if the amount of Bitcoin you receive in change for the house is good for you then the deal is done.
What you are looking for is pricing things in time spent to earn the amount of currency required. A salary basically converts time spent at work to currency. It is up to you to judge if paying a years worth of time in earnings is equal to one house or not. Then, it also depends if you are buying a house or an investment in the shape of a house. For another example, is a hundred hours working at what you are good at worth paying for a washer and a dryer, that saves you time spent on chores for the next few years?
thank you, that’s an interesting way to put it. Definitely going to have to give it some thought. Cheers!
I'm kind of already doing this. At least when I'm thinking about buying something expensive. Art. Vacations. Cars. I don't think of the cost in dollars. I think of it in bitcoin and ask myself what would I rather have? That trip to Hawaii or 0.2 btc?
Every year my stack gets bigger and cost in btc goes down. Eventually that trip will look cheap.