Ok so I think what you mean, instead of the word “value” perhaps “rate of exchange” or “exchange rate”.
Right?
Instead of assuming exchange rate for BTC is always to fiat USD, the rate of exchange could be listed in a different fiat such as the South African Rand.
Do I follow now?
Most people alive today use local fiat to value their assets, their net worth, including #bitcoin
My point is now we have something outside the old #fiat world, the reverse is true and #bitcoin is the better measure in which to value assets, net worth, etc
Once one truly understands all other investments and assets fade away vs #bitcoin because they become rapidly devaluing assets as #bitcoin is adopted and its value rises in relation, but this isn’t my point
How does one measure the value of a currency? Quantity created = value? <==this tends to be the case. People measure the *quantity* of a currency in circulation and impute value in the same currency, typically using money in circulation, deposits, and other digital records of value kept in liquid“cash” or cash-like deposits. The FRED M2(M2SL) provides USD’s M2SL quantity at $21.2trillion, implying the value of USD currency
Implying value from a quantity measure is not the best, but that was all we ever had before #bitcoin. Now #bitcoin is being adopted at some point we will just say value in #bitcoin, and if the USD doubles in circulation it won’t matter because the measuring rod is unchanged.
Since I state that all value should be measured in the hardest, purest value-containing asset ever known to man (#bitcoin) leads the USD to a required quantity of #bitcoin at current exchange rates of about ₿245million, the number of ₿ reflected for USD in the aforementioned fiat market cap weblink
Happy to discuss further but not sure if I am becoming patronising or being trolled
I do not think you are becoming patronizing nor a troll...nor am I trying to troll you! 😉
I think this is a good , valid, and valuable conversation.
I appreciate your explanation and clarifications.
One thing you state which I'm not sure I'm fully grasping is:
"Implying value from a quantity measure is not the best, but that was all we ever had before #bitcoin."
Is this not what most people are still doing with #bitcoin itself? Many claim it's price (fiat exchange rate) will go up and up "forever" due to it's fixed supply (limited quantity).
You do follow up with "Since I state that[;] all value should be measured in the hardest, purest value-containing asset ever known to man (#bitcoin)".
Thus perhaps we have no other choice than to value based upon quantity??
Is there another way to value goods, services, medium of exchange, proof of work, etc...that I'm not aware of?
P.S. Again, thanks for engaging!
“Implying value from a quantity measure is not the best, but that was all we ever had before #bitcoin”
Just because there is a quantity of something does not infer a value—value is derived from what two parties determine it to be, regardless of quantity issued. You don’t exchange EUR for JPY based on your own knowledge of how much of each currency is in circulation. Currencies have relative values between each issuer based on rates, inflation, liquidity, credit, purchasing power, ease of exchange/arbitrage, and most recent traded exchange rates, quantity of the currency issued has impact to all of these and is important
However with #bitcoin we now not only have the ability to measure #fiat money and currencies vs. a limited supply (which reaches back to quantity,) but also as an improved sovereign control of value, uncensorable, anonymity, fungibility, less financial friction and inefficiencies
Yes, many people use quantity as the measure, but reiterating the point it is not the only way as before; #bitcoin ‘s other features have value, too. Over time (years? decades? centuries?) as #bitcoin settles as the standard and #fiat is measure in #bitcoin, then we might have good methods to quantify each contributing aspects’ value
