The denominator that determines value is really the amount of goods and services for which people are willing to pay dollars, just like for Bitcoin.
The economic real value for which currency is used can grow, as can the money supply (in the case of fiat, as well as in the case of Bitcoin until we reach the 21 million BTC cap). Both fluctuations change the value of the individual unit of money.
Yep, and more generally ‘money’ is the proxy that is accepted as equivalent for said goods and services.
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