How will Bitcoin scale as a medium of exchange?
If it’s so good, won’t everyone just save it and spend their dollars instead? That’s the classic argument.
This is absolutely happening and will continue for a while. That view only sees one side of the transaction: the consumer.
At the beginning, just as only the most committed Bitcoiners will spend it, only the best businesses will be able to demand Bitcoin. As those two ends of the spectrum grow, people who want to spend dollars and save Bitcoin will start to run out of options. Especially for quality goods.
This transition starts with shop owners upcharging for fiat. At first, it will look like today’s cash vs credit pricing, simply covering card fees. As Bitcoin becomes more obvious, that spread will grow.
Adoption will take time. Not every producer will switch quickly. The ones who do will outcompete. They will escape margin decay from fiat debasement. They will not need to cut corners. Good money chases quality goods, and these businesses will be positioned to thrive.
High-quality producers steer the next marginal transaction. Over time, they will steer it toward Bitcoin.
If a business wants to earn the hardest money, they will have to produce a top-quality good. Just like if a consumer wants a top-quality good, they will increasingly have to pay with Bitcoin.
Orange pilling the world begins at the margins.
There are two sides to every transaction. The margins are on both ends.
