You all keep bringing up Grisham's Law, but Lightning effectively ended that era, for Bitcoiners.
Discussion
Anyone who was storing significant amounts of fiat has already had the chance to transfer it all into Bitcoin, at almost no cost. Many autoconvert any incoming fiat or autopay their bills and convert the remainder.
They are on the Bitcoin Standard, already.
If a country uses the USD for everything but you save in gold, are you living on a gold standard?
An interesting argument. I suppose the people who invest in land are betting on their country in the same way. I'd never had that thought before, but most American home owners are betting on America. Ideas are most interesting when you abstract them I think.
Not unless you are also using gold as a currency for trade and pricing everything in gold (unit of account).
Without that, it is merely a store of value and possible reserve asset.
But in your example above, the person autopays their bills with fiat and then converts the remainder in bitcoin. They transact in fiay and then save in bitcoin, and probably spend and replace in bitcoin. I agree with 95% of your example, except being on a bitcoin standard already part.
It is possible to use more than one currency, but be on the standard of only one. I use USD, Bitcoin and Euro, for instance. If I convert from one to the other, or send or receive payments from "foreign" currencies, that doesn't change the underlying standard.
I am on the Euro standard in Germany and the USD standard when in the US (I have a bank account there), but am slowly transitioning to the Bitcoin Standard.
Zaps have given me some affinity for satoshis, as my base zap amount is always equal to roughly 2¢ in Euros.
27 sats ≈ 2¢
2700 sats ≈ €2
27000 ≈ €20
this is what unit of account means, it's a well known concept in accounting of international trade for decades
i also treat bitcoin as my unit of account and sats as my cents
Yes, and I will consider the Euro 💶 pointless paper, once we reach 1 sat = 1¢
That's why I made the diagram. Countdown to irrelevance.
i think by that time a lot of people will have the same opinion
i think that the naysayers and the bitcoiners both are wrong about how fast this happens, i'm very familiar with the physics of state changes from chemistry, chaos theory and computer science i will say that in a matter of weeks, at best, the world will turn against fiat currency
Anyone who is not on the Bitcoin Standard can still use Bitcoin as a unit of account, when deciding how to spend -- or not spend -- money because the alternative to spending is Bitcoin cold storage.
For those who are not aware, Gresham's Law contends that, if people have a purse containing two monies, one whose face-value reflects its actual market value, and one whose face-value is higher than its actual market value (because of coin debasement, like clipping or using cheaper metals at the mint), then people will prefer to use the debased coins first.
Lightning means that you don't have to keep the debased money and spend it, to be rid of it. You can simply convert it.
The reason why Gresham's Law further doesn't apply is that it assumes that the two monies are legal tender with the same face-value, whereas Bitcoin is not legal tender.
The choice to prefer to spend Bitcoin or fiat during some particular transaction is not primarily dependent upon which has the higher market value. One currency is simply easier to spend, currently, due to regulations and payment rails.
Even those who only own Bitcoin sometimes have to convert it to fiat, in order to spend it. That is the opposite of Gresham's Law.
Guess I should write this all up, as an article, but I am about to leave and spend 10000 sats on 🍰 and ☕, since I am a wild, sat-spending woman who likes garden parties.
I shall savor every bite and enjoy every sip. I shall not worry about what 10k sats would buy me in 20 years. I will simply relax and have fun.
Have fun. It’s almost time for me to get ready to pick up my aunt for father’s day and my sister’s birthday. I guess we’ll be outside by my sister’s garden even if it will be 100 degrees out. Last year she made ice cream and blackberry cobbler with blackberries from my aunt’s property. Speaking of enjoying things without worrying about future consequences.
I've decided to up the ante, again, as my decadence has no bounds:
I will also pay for Oma's cake and coffee.
For the many keeping score, seething in frustrated bitterness at my wanton ways:
That is now 2 🍰 and 2 ☕ for the horrific proce of 20k sats. Which, if we stayed home and drank tap water, instead, would allow my great-great-great grandchildren to pay cash for Cuba.
Oh, the tragedy! 😭
if oma's not happy, ain't nobody happy
Your wit always entertains L... 😃
It was delicious, nostr:npub1wqfzz2p880wq0tumuae9lfwyhs8uz35xd0kr34zrvrwyh3kvrzuskcqsyn, thank you.
My PO is an awesome PO. 😁
When you spend SATS you can consider to buy back at the current prices, this replacing the traded away coins
i ❤️ my xapo... i can on chain in and out, lightning in and out, as well as SWIFT, Tether and USDC, and credit card payment network
pretty much it's bitcoin and lightning only, and mostly only instantly converted from sats, so i hold bitcoin as my primary unit of account, and keep most of that privately on my mini pc away from the KYC bank service so they don't have any information about what i get paid from foreign jurisdictions (nothing, i swear!)
lightning and bitcoin are more reliable than any of the others though, that's gonna count for a lot in the upcoming years as solar storms screw up telecoms and computers more and more
so of course, one of the things that i always do is get some physical cash on hand, none of the nearby cafes accept cards so it's a must, plus cash is CME/EMP proof
You’ve piqued my interest in Xapo.
it's the best fiat/bitcoin rails on the market, it makes my life so much simpler
Where is the catch?
Full KYC no doubt, like an exchange such as Coinbase. However, appears to have a private bank license.
yeah, onboarding is pretty smooth, and they let me do address change just by GPS!
i haven't bothered updating that with them, in any case, none of their fucking business and being based in Gibraltar they are a neat in-between, not really UK, not EU, but sorta both at the same time...
But does it mean anything? They have to keep theirself to a standard. But what if that is not a good standard?
Difficult to say but I think one of key selling points is the ease to move fiat to lightning sats and back again.
I think you can get that with other KYC companies as well.
Most likely. But do they work in the UK?
I will check it though. I am writing a short article on bitcoin benefits, and trying different services for the fun, and what setup would be best for me.
KYC
i tried to use wirex on two separate occasions in the past and their customer service is abominable... second time an ATM, which dispenses cash before releasing the card (FIBank bulgaria) i forgot to pull the card, the bank refused to give it back without proof of ownership from the card issuer, and the card issuer refused to ever respond to my support request
stay the fuck away from wirex... i don't remember exactly how they fucked me the first time, but it was probably as fucked up
and binance... i had a binance card, and before 24 hours passed someone was already carding it on the darkweb in france, belgium, etc etc
i foolishly kept using it and inevitably i had some bitcoin in the card account and 🌀 first a 250 then a 300 and i caught it and froze the card
xapo is not like either of these shitcoin cards