Most people only want to hear that Bitcoin is going to be worth millions because all they actually care is getting richer. It's understandable. Not what I like to see, but understandable.
Discussion
I'd say good on them, except the fact that they want it to be worth millions. Millions of what? Fiat shitnotes? They've clearly got the wrong measuring stick. Instead of measuring purchasing power, they want to measure their wealth in fiat shit notes, which is not helpful. They completely missed the point of freedom tech.
Unit of account will be the last domino to fall. When they say dollars, they mean purchasing power.
So you want them to say OMG, did you see? A Bitcoin is now worth 4,000 oranges! Or 59 tvs. ? That's insane. You need a unit of account. Currently that unit of account is in dollars for most people globally.
That's exactly what I want to see.
For example, every time I see somebody post a price in Fiat on XMR Bazaar, I message them and ask them if they can price their item directly in Monero.
The more people who use Monero as a unit of account directly, the less often the fiat price must be referenced, which gives the exchange traders less power over price movement.
I have to admit that it took me a while to get it. My first impulse was: “no, but that will make the sellers change the price every time the price of #monero rises vs the FIAT”
Then a second thought was “but actually it has a lot of sense”:, Aren’t prices rising and quality dropping because of the fiat? 🤔
That's a good point, and since sellers are selling physical goods and services directly priced in Monero, it causes the Monero price to slow down its change rate, so it's not changing at the speed of algorithms, it's changing at the speed of humans.
If a seller chooses to change the price, say once a month, that means that for that month, you must give that seller that amount of Monero to obtain that good or service, no matter what the exchange price says it is.
This causes the volatility to drop.
When you say “this causes volatility to drop”, volatility against what? Fiat?
I wonder how we could calculate the price if it’s totally delisted.
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
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
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.
Also, it won't be totally delisted everywhere, as there's always decentralized exchanges such as RetoSwap and atomic swaps. If worst came to worst, we could calculate what the fiat price would be by using the Monero to Bitcoin exchange rate and then using the Bitcoin to fiat exchange rate for that amount of Bitcoin. But that would be a worst-case scenario.
But I guess haveno or RetoSwap is getting the price from somewhere and then the users add the premium. Even the price XMRBTC has to come from somewhere otherwise the users of haveno have to use a “fixed” price and that would be nuts and fun considering the volume there
Currently they get their price by averaging out the price on several centralized exchanges and using that.
However, on Reto, right now there are an average of 35 trades per day. Once that number rises significantly, you could very well turn off the feeds from the centralized exchanges and just depend on arbitrage to fix the prices properly.
At an average of 35 trades per day, that's one trade on average every 40 minutes. That number would definitely need to come down first, but I think that will occur over time.
this is retarded.
it will happen naturally with out the “awkchually” bro messages.
You do you boo boo. Meanwhile i will work to speed up the natural process.