Do you believe in a bitcoin denominated circular economy?
Discussion
Yes.
Yes.
The time will come
Fuck yeah I do
Hard to see it right now. People see bitcoin as an investment, rightfully so. Maybe in many years from now…
^^ this. Too much focus on hodl right now for enough people to use it transactionally
Yes, but it’s important that these economies still have access to some fiat, as well. I’ve heard from some people in these economies that mostly run on bitcoin that selling some BTC when the price is high has helped to hedge against the pain that comes with price downturns, especially for people in the community who are paid in BTC.
Yes.
Denominating contracts in an asset is a lot easier when that asset has a stable purchasing power. There are ways to structure contracts adequately despite volatility, it just gets more complex.
So I wouldn't be surprised if it takes another couple halvings until Bitcoin is a widely used unit of account.
So I am wondering how to get there.
We got some bad feedback because we did not manage to adjust amounts compared to fiat fast enough in the last run. (partly understandable)
but then the question for me becomes what is fast enough? if that's real time towards some fiat currency then we fully loose the bitcoin denomination.
Decreasing sat denominated prices is basically a discount for customers, so in some sense it's a marketing campaign that can be frequently repeated.
if purchasing power increases, so it’s natural that one gets more or for less, isn’t it?
The issue is at the quoted sat price, the opportunity cost is always changing (you can buy future tech only in the future). So, the perceived cost differential between BTC and fiat is just 1 arbitrage calculation in a multifaceted social equation. Either extract maximum value by paying the contract on agreed terms or domt.
Do you ? 😆
Technically it would be an LNBTC denominated economy but since the reserve is 1:1 basically, yes.