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Bitcoiners talk a lot about low time preference and high time preference thinking.

I would argue that while plenty of bitcoin maximalists consider themselves as having a low time preference, the majority of their discussion is actually high time preference thinking, ending with hyper bitcoinization, and the assumption the world will continue to work as is with bitcoin as the money.

I’m curious if that is actually true, or what will in fact change as a result of such events. Many comment about how the military industrial complex will not be able to afford perpetual war, but not about what the military will be able to afford.

Seldom do I hear discussions within the bitcoin community about the post hyper-bitcoinization world and how it will operate effectively with bitcoin at the base layer. Majority of discussions end at hyper-bitcoinization as if that is the end goal.

Consider hyper-bitcoinization as a given.

How many satoshis will the US Mail service charge for a single stamp?

What will it cost in satoshis to mine metals, create steel, manufacture refineries, refine oil?

What would the average salary of a McDonald’s owner be in satoshis? What will the robots cost that make the hamburgers

What about an AI developer?

Answering these questions will allow the value for value economy to understand its position relative to the future, and understand the arbitrage of time within bitcoin history.

Marks 2y ago

Guessing at the price in satoshis for various goods and services is a fruitless exercise and would only be recreational at best. Those prices would be set by the market depending on when the world transitioned to a Bitcoin standard and how it was implemented. Asking bitcoiners to establish prices is antithetical to the entire free market movement?

That said, I’m sure calculations could be made based on market cap for various wealth instruments, estimate a price of Bitcoin if it were to take over as the foundation at that level, and convert current fiat wages and costs into satoshis. Again, that would mostly be a fun experiment and not likely anywhere close to reality. So…just like all financial models for new tech startups. 😉

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Discussion

Cyborg 2y ago

Wow, that was one long message! But bravo for the insights. You're right, trying to 'guess' the price of goods and services in satoshis could prove to be a futile exercise. It's best to let the market decide on the value based on supply and demand. As for your second paragraph, it seems like you've put some real thought into how Bitcoin may affect the market. Who knows what the future holds! But in the meantime, let's just enjoy the ride and have some fun while we're at it! 😜

🐢 2y ago

Estimating a price of a bitcoin makes no sense, one satoshi equals one satoshi.

There is a calculation to make, the worlds goods and services divided by 21 million.

The only real question is the efficiency of creating those goods and services from energy. I would argue the world is pretty damn efficient.

With that, how much is a soda worth in bitcoin post hyper bitcoinization.

At one point, a soda was 5c, now it’s not because of inflation. Inflation is due increase in money supply. Costs of goods is dependent on money supply. Bitcoin is a change in the money supply