If there's no fiat, where's the volatility?
There could be an upswing in cow sex that grows the cow population and reduces the price of beef.
Or a drought that destroys wheat plantation raising the price.
But in both cases money isn't changing value. The volatility occurs only in the specific market where the changes happen.
You can still buy just as much banana.
There's no reason to worry about the "price of money". It shouldn't even exist.
People were worried about gold clipping. Not gold losing value. People were worried about the price of goods... not the price of money itself.
The price of money is a fiat concept.
I'm not sure if what I'm saying is known and obvious.. or stupid. but it's obsessing me right now.
The price of money always exists it’s just a matter of how it’s measures. Currently the dollars price is measured in goods, so it’s hard to see the exact price. But it can also be measured against other currencies, like bitcoin. There’s always a price of money.
Shouldn't we say that the price of fiat is interest rates?
You could say that the price of bitcoin could also be interest rate as loans under sound money won't disappear but there has to be a difference since fiat is *nothing more* than that interest rate.
Also, the highest form of money, I think, can only be measured in goods and services. You could say that a US dollar price is 2 canadien dollar but that statement is meaningless if we don't know the price of 1 us dollar in bananas to begin with.
The highest form of money cannot have a price outside every single individual human mind based on their particular situation.
(I'm confused myself in all this, it might not be clear)
