Oddbean new post about login | logout I genuinely don’t think you are getting the point here. Please explain to us then: How do you determine what amount of Monero trades for what amount of Bitcoin? Where does the price basis come from? You cannot just reply “Bitcoin is the denominator”. Conversion requires mathematics, so please explain with the equation that determines the value and how it’s done.
Eggs, milk, electricity, bread, water... Anything. I understand. You are making the math more complicated than it is.
it takes about 10,000 sats to buy a carton of eggs. its an easy metric
It only takes 10,000 sats to buy a carton of eggs because USD is the UoA of each item. If it wasn't for bullshit fiat measurements of each asset, we have no idea what the price would be.
der 🤓
(eggs/USD)÷(sat/USD) still fiat denominated
eggs are priced in dollars SATs are priced in dollars its only because they have a common UoA pricing in sats is possible super basic Econ, principles of money stuff here
some law of physics stops me pricing eggs in sats?? or roubles? or matchsticks? this convo is hilarious :)
They can't see it Han. They think it is smooth sailing until BTC becomes the UoA. They can't see what I call the deep adoption of Monero, which has a similar owners structure as Bitcoin. Likely better. In a blink of an eye Monero and Bitcoin could change roles if one sees wider use as a currency and becomes a kind of UoA even if it is just for a secondary market at the beginning. Monero is closer to that than BTC.
You can arbitrarily start pricing them any way you like. But nobody particularly cares what you or I think, or how we price them. The fact is, society is already pricing them using a unit of account. They are all, Bitcoin, eggs, milk, electricity, bread and water whatever they are all denominated already in a unit of account. You and I don't change that by doing division. It's also irrelevant if the price is slightly different in a different geographical area. Or if it's actually great British pounds rather than US dollars, the unit of accounts still is the same.
It doesn't matter what you start with to determine value at present. The starting point is not involved in the future equation to compare currencies. They are all money. They are all competing to be money. They're not all competing to be USD. USD is just one of the monies competing.