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“Tucker said the fundamental case for Bitcoin was made conclusively almost at the outset. “As far as I'm concerned, the proof of concept of Bitcoin was achieved once it achieved dollar parity,” he said. “The miracle was over. We had finally invented the equivalent of gold for the internet age. Digital gold is what it always has been.””

https://www.kitco.com/news/2023-04-18/Gold-and-Bitcoin-a-safe-haven-family-for-the-imminent-recession-Jeffrey-Tucker.html

a source familiar with the matter 2y ago

Did it achieve dollar parity? Why is the appropriate unit 1 BTC and 1 Federal Reserve Note (FRN)? Wouldn't parity imply an equal value between commensurate units, rather than between incommensurate units?

For example, if a kilogram of silver is trading at the same price as a troy ounce of gold, are gold and silver at parity? Obviously not

If a barrel of oil is trading at the same price as a pound of filet mignon, are oil and filet at parity? Again, obviously not

If a blessing of unicorns is trading at the same price as an aisling of leprechauns, are they at parity? Who can tell?

So an FRN which is a debt for nothing in particular probably cannot be said to be at parity with Bitcoin which is a ledger entry for nothing in particular. Unless of course the two nothings are the same

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Discussion

halalmoney 2y ago

The dollar is, whether I like it or not, a unit of account. #Bitcoin, whether one likes it or not, is a nascent form of money. Therefore, the milestone of dollar parity is noteworthy because both are related to money unlike filet mignon, unicorns and leprechauns.

Or perhaps I’m completely off the mark and both the dollar and Bitcoin will, in the fullness of time, take their place in the scrap heap of history.

a source familiar with the matter 2y ago

Yes, and we will use God's money instead of Caesar's