How do circular Bitcoin communities handle pricing of goods and services, in general?
Is it typically tied to fiat costs of “import” when a good cannot be produced locally?
A community of bitcoiners naturally should believe their Bitcoin to be significantly undervalued in fiat terms. How do you establish fair & mutually respectful pricing alongside this premise?
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I don’t think the underpricing of BTC should affect the sats denominated pricing of goods, though liquidity might.
I recently went through a bitcoin - fiat pricing activity, and I ended up deciding I’d peg the price to fiat, since that’s what my costs were, and to be more fair to the other party since pegging to bitcoin will make it expensive relative to their income shortly 😈
Feels like a fiat peg makes sense right now from a business p&l perspective
I think a “discounted” btc price can definitely be a good way attract customers as well helps you stack sats cause bitcoin businesses would know these would rise in the future.
Right on - if I’m selling a service (like if I decide to do cellar consultations or something), I’d set a fiat price and a discount if paid in sats, for sure
At least as long as the gas I need to buy to drive to a client is priced in dollars lol
P to P.
There is no third party. There is no other currency. There is nobody else to interfere or to criticize. Just you and the other guy.
Get it? You make an agreement, then transfer the BTC. That's it!
Simple!
Love it in theory, but how do you handle that when factoring in cost of goods that are priced in fiat?
If I’m buying a coffee from you, but you have to buy your milk from a farmer who uses dollars, that has to impact your ability to choose a sats price
We have established that there are only two parties, right? What each of you think and do on your respective sides of the bargain is not a Bitcoin service. Bitcoin is just the protocol that enables you to smoothly make the trade when you do agree.
Fair point. Is this how pricing is actually determined within established Bitcoin communities? That’s what I’m wondering
Ad hoc. P2P. Case by case. Whatever the traffic will bear. There is no standard.
That may be frustrating to hear, but there is no formula for equating one's own instance with somebody else's other than free market trading.
Fiat money sometimes handles this by having cost of living adjustments, wage and price controls, etc., but those are just lies that the public accepts until they don't.
Again, Bitcoin is just a payment protocol. It doesn't have any way to judge how much you should get.
Not frustrating at all. Cool, if anything.
Is your answer theoretical or do you you live in a circular Bitcoin community?
