Replying to Avatar Zaelus

I see constant talk about how Bitcoin is the way of the future, how it's the answer, the solution to the corrupt and mismanaged fiat system, a revolution, a way to put the power back in the hands of the people, digital capital, how it has so much utility, how it is the perfect money...

But I never

ever

ever

see anyone talking about how we'll actually value it in a future where it has achieved the goal that everyone idolizes. Why? Why does it feel like there's no true long-term plan?

Lots of people say "don't value your Bitcoin in fiat", but they just stop there. They don't even bother with trying to extend that thought. I feel like this is a mistake to not take it further.

Imagine a future where Bitcoin has become our new primary store of value and we no longer value Bitcoin in fiat. How will we value it at that point? What will one BTC be representative of?

How will we determine this new system of value? How will we arrive at a consensus for it? Will this somehow naturally and organically grow out of the decentralized nature as the system becomes more and more widespread and adopted and used, similar to the dynamics involved in the emergence of the first currencies? Or will there need to be some form of committee formed to make a decision about how we value BTC? Will governments play a role in this?

All the talk of "0.1 BTC is all you need" and "whole coiners" is all purely based on fiat, and doesn't address anything about the long term future of Bitcoin.

I was wondering if people can tell me if any thought is actually being put towards this. I'd like to read about any progress towards this, or about thought experiments for it, or see videos or listen to podcasts that discuss it. So any kind of recommendation of reading materials or other information would be greatly welcome.

Memes and pithy hype quotes aren't going to do shit for us. If this truly is a revolution, we need plans, and we need to ask the hard questions and deal with the tough discussions and start to think about the goal we all dream of actually being realized. Memes and parroting "stack sats" are the lowest of the low hanging fruit.

#Bitcoin

You're overthinking this so much, that you aren't actually thinking it through.

Reply to this note

Please Login to reply.

Discussion

Please feel free to help me gain perspective and see the correct way to think of it. So far I've gotten a few replies to this that all say absolutely nothing of any substance and seem to be purely emotional reactions.

You asked what will one Bitcoin be worth, in a future where Bitcoin is the monetary standard.

If you buy a house, the house will be priced in sats. What the exact amount is, will be dependent on what the market demands.

The money is worth what you can purchase with it.

So would it be logical to say that it would likely just naturally evolve out of the value system we currently use? So like... purely hypothetical here, BTC goes to 10 million USD per coin and that coincides with the "switch over" point to where we start using BTC as the monetary system... we'd use the current value of things as the basis for starting out the new value system? Like, okay my $1M house now only costs 0.1BTC.

Think of a fluid switch over. Gradually then suddenly.

I agree that it will be this way at a high level, but I was curious to see if people had tried to hash out any more specifics on the subject.

Dunno if there can be specifics if it boils down to individual decisions. IMO if you understand money the value question is already answered.

It's an ongoing process for me. I'm still learning and don't have a solid foundational knowledge of economics and money. So maybe my original post was not a good idea, but I am fine with getting roasted and beat up as long as I learn something new or gain more perspective, and I definitely feel like all of these replies have helped me to do that.

Mises theory of money and credit opened the floodgates for me.

That's what happened when the Euro took over all the other currencies in Europe. Stores had two prices per item, one in Euro and one in their sovereign currency. People, over time, became accustomed to the new unit of account.

Some places may have discounts for individuals who prefer to pay in Bitcoin or an additional charge for those who choose to pay in fiat.

Bitcoin is a parallel system, so it is a natural evolution of our current value system.

Personally, after a few years of using Bitcoin as my personal unit of account, I recently started to think of prices in terms of sats. My brain hasn't fully adjusted out of denominating value in dollars, but it's getting close.

It reminds me of when I learned English. I would think and count in French, then translate to English. Now, I think and count in English exclusively.