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shortwavesurfer2009

It causes volatility to drop against fiat, yes, but it also causes the volatility to drop against other goods and services of the same variety.

If somebody is selling an old laptop, for example, then you can get a feeling of how much an old laptop will go for, even without the fiat price.

Now if there are 10 old laptops of different varieties and in different conditions, then you get a spectrum of what old laptops will go for. And you definitely don't need to look at the fiat price to get a feeling of what you should charge.

The first person to sell an old laptop directly priced in Monero has to look at the fiat price and then after that people need to look at the fiat price less and less

tuco 5mo ago 💬 1

How volatility will drop against fiat when fiat is depreciating way way faster because of the hyperinflation?

I mean, in the best of the cases, say we had an organic growth, steady, there will always be speculators (and they are desirable, and needed) therefore volatility (at least till some level) will always exist, at least as far as the majority is connected to fiat somehow

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shortwavesurfer2009 5mo ago

During a hyperinflation scenario, volatility will just be bad anyway.

For a non-hyperinflationary scenario, such as we are in right now, if a buyer thinks that they can get the item cheaper in Fiat, they will sell their Monero on an exchange for Fiat, which will pull the price downwards towards a moving average.

If the buyer can get the item cheaper in Monero than they can in Fiat, they will buy Monero on an exchange with their Fiat, which will push the price up towards a moving average.