This is vital. The only way to make bitcoin attractive to the masses is to pass along a discount to consumers for paying in bitcoin. This should be justified by the savings on transaction fees you get from opting out of credit card payment processing.
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For example id like to see someone charge 100,000 sats but not increase it to 200,000 sats when the price of bitcoin denominated in dollars increases.
For pricing in bitcoin, it might make sense to set the price at a moving average over the past 7 days or what not.
I think nostr:nprofile1qqsfnnh6v3dspqtnwv3e46aed5k3nypyfx2wtet92ekg9szt3hr9k4qp8pmhxue69uhkc6t8dp6xu6twvuhxyetwvd5x7erjdanxvtnrdakj7mn0wd68ycmvd9jkuap0v9cxjtmkxyhhyetvv9usz8nhwden5te0dehhxarj95crxtnydaexzenpvd6x7une9ehhyecj4jdzt has said this, his product would be stable in sats. Great idea!
It's tricky to keep the price stable in sats when the BTC-USD exchange rate is so unstable, at least as long as your customers are all pricing their consumption in dollars.
Your prices could increase or decrease 2% on a typical day, and would on average get more expensive over time. Not to mention the flash crashes which involuntarily put your product on sale.
As more people keep larger stacks of sats in reserve, this will become less of a problem.
This only works if all of your inputs are also priced in sats, so it wont happen until hyper-bitcoinization
Imagine you sell tshirts that you paid for in cash to sell in bitcoin. You sell 10k sats to buy the shirts to then sell for 20k sats. If bitcoin halves in usd price, you just sold at a loss. If bitcoin doubles in price, most customers view that as double the price. Or did i get that backwards?
SoV -> MoE -> UoA.
You are correct. As long as the equilibrium is dollars, it's costly for any one player to defect. A catalyst will be required to shift everyone from one equilibrium to another.
I understand that, but also at a bitcoin meet up I go to the brewery accepts bitcoin, and the price of the beer has not changed in dollars over the past 3-4 years so when we go and buy beer it gets cheaper when we pay in sats.
I dont understand what youre saying then. Are you saying that some vebdor is increasing their price by double in bitcoin and also incressing it in dollars?
In that situation the beer was $5 in 2023 and $5 today. So in 2023 it cost more in sats and less now. The price of the beer has remained the same in dollars and cost less sats now as the price of bitcoin goes up. But I have noticed folks that sell products in bitcoin and have charged more in sats as the price of bitcoin has gone up. So as the price of bitcoin has gone up in dollars they charge more sats for their product instead of the product costing less in sats like the example with the beer.
Gotta give lots of coverage to putting your wallets together, and dealing with an Exchange wallet like a Coinbase account. Gotta show Grandma how to open an account on an exchange, put some dollars in that account, buy some Bitcoin and then........ learn about cold storage and how it operates.. What's one of the most important parts of the journey? Showing people how to recover their wallets.. When they see how to get back on the Bitcoin freeway, confidence goes up...
