1) Prices in a free market fall to their marginal cost of production.
2) The marginal cost of production keeps falling towards zero due to technological advancements
Which means that if “your” prices are going up over time….1) it is not a free market and 2) you’re measuring from an inferior currency to Bitcoin.
This is why a deflationary monetary system is benefiting.
Huge increase of quality of life 🍀
Yup!
Excuse me? If Nayib Bukele bought his first BTC today he could buy almost 2x more, he's down 43%. Saylor is down $1BN. What deflation, where? Who has seen a net increase vs. the USD? Nobody I know of. Careful shilling your "deflationary" claim to your friends and family. Think they're going to outperform Saylor and Bukele?
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It’s frustrating that all my attempts to orange pilling is failing. They complaining about real estate price all the time and wish somebody told them to buy lot of real estate earlier.
I told them buy bitcoin otherwise they will complain in few years.
Everyone will find it in their own time. I find asking questions from the thing they care about most works best and then use the 5 whys to get to the first principle.
that's right. remember that most humans are like non-newtonian fluids.... the stronger you push or force something, the stronger it gets repelled.
the key to success is to just be there and listen, and ooze into their world/life/problems and be a friend
Yup, the fable of the sun and the wind.👍
Hey Jeff! Is there any info on the bitcoin opportunity fund?
What are the 5 whys?
”Gutta carat lapidem, non vi sed saepe cadendo”/ Ovidius😉
What do you mean by "free market"? I always hear this term and can only think of a few countries where the markets are "free"... and they're usually dysfunctional.
or you stop using technology
Thanks Jeff 🧡
We measure the quality of our work in terms of the amount of energy we expend on those efforts.
If the currency unit we are rewarded with changes from year to year due to inflation then the energy is not being valued appropriately since the first law of thermodynamics states that energy can be neither created nor destroyed.
#bitcoin fixes this misalignment of the incentive structures for our day to day work and will improve the quality of the products and services we provide for our communities.
Is that always 1 AND 2? Or can it be 1 OR 2?
Luke Broyles provided some nice signal on this as well yesterday on Preston's podcast. Need to get him over to Nostr.
You ask most economists whether a free market, or capitalism, is good. They’ll answer, “Yes it’s good”. But still they don’t agree that money should be free as well. How can there ever be a free market if the money market is rigged?
But cost is relative to everything else. There is an opportunity cost with the production of anything.
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spot on as always jeff 🎯
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In a world which won't be able to fund UBI forever and for everyone with abundant money , the best we can do instead as a society is bring prices towards zero, to share the fruits of our advancements in technology. Then the amount of work needed to support yourself and your family decreases over time.
There is no such thing as prices tending toward zero! All prices are relative to other prices
What is the price of the air you breathe? Abundance in money creates scarcity...Scarcity in money creates abundance. or to use in terms that you stated above.... "Relative" to Bitcoin, prices will decline towards zero. "Relative" to fiat, prices will rise.
When mr Booth talks we listen.
Pure signal 🤝🏼
“Trend towards zero” doesn’t necessarily mean they will certainly reach zero.
To use air as an example of abundance, no technology can ever make a scarce good abundant, it can only change the relative scarcity of one good compared to another. The relative scarcity of Bitcoin increasing compared to everything else is a false assumption for two reasons:
1. It assumes that demand for money as a percentage of wealth does not decrease, but an increase in individual wealth causes demand for money to decrease.
2. It assumes that the market will not demand substitute currencies, but scarcity of blockspace increases demand for other currencies.
https://github.com/libbitcoin/libbitcoin-system/wiki/Substitution-Principle
https://github.com/libbitcoin/libbitcoin-system/wiki/Utility-Threshold-Property
I agree with you 95% of the way, I don’t think markets are 100% efficient though. So there may be some exceptions
OH, wait.... I thought falling prices are bad....., just as C.Lagarde keeps telling us with horror in her voice....ECB have to "save us" from such a plague...🤡
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