Nostr Web Client

I build software and sell it to consumers. This is not a hypothetical or the preamble to a thought experiment; this is a description of my economic reality.

With the money I make (either as USD or converted to Bitcoin - or better yet, paid in Bitcoin by the customer), I do some saving and some consumption. As my goal is to hold on to as much value as possible (while either saving or "waiting to consume"), I prefer to store my value in Bitcoin because it doesn't hold the _guaranteed_ counter-party risk of fiat inflation by a malicious State.

Admittedly, it has price volatility risk, but for as long as I've been moving USD into Bitcoin the line has always generall trended 📈 and I personally believe (based on my understanding of money as an abstract category of technology) that this is the current market good which will become the next money. This, I have reason to believe that trend line will continue.

All that said, back to the beginning of where we started: the line only needs to do better than inflation in order to make it smarter to get onto a Bitcoin standard for daily purchases than USD (see the 3 cases example I gave above, which you didn't disagree with the math on, just on which you think to be most likely to happen).

frphank 1y ago

See there, if your economic theory about producers competing in some sort of price race to the bottom were true, you wouldn't have any money left to stack sats.

The line only needs to do better than inflation, that's true, but does it. Inflation is guaranteed, it's one of the measures central banks use to regulate the amount of currency in circulation. Anything else depends on the misery and dreams of some naive people.

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Discussion

vinney...axkl 1y ago

I never said race to "the bottom", that would be silly. It's a race to a (constantly shifting) equilibrium (price) between producer and consumers that changes as the interest, needs and population of the consumers change; and the capabilities, needs and population of the producers change.

"Inflation is guaranteed" in fiat with central banks. But now you're beginning to argue my point...