Oddbean new post about login | logout the exchange rate of a pair follows the *prices* of each individual asset, as measured in the dominant Unit of Account. because otherwise degens can jump into one asset flip to the other and sell for free fiat. this action forces the trading pair to follow the USD prices of the assets. All assets and all charts, we are going to mention here are USD denominated. nostr:nevent1qqsx94969d6yqlu0ngrkp7c2qcd5mmkxpk89y3wnmnf9nwyv72spn0gpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsyg8eshfsjxtusp0pwxw8xxzm2a8u8mjq047pkc2hmm5ec6kwykvmhvpsgqqqqqqs52wwe7
Incorrect, wrong, dominant unit of account is made up nonsense
show youe work or GTFO People use a *unit of account* to make value comparisons between two assets. This is econ101 shit.
Econ101 also teaches that economies collapse without inflation and MMT is the way, miss me with that fiat minded nonsense 🐸
lol cool bro you're right economies dont use a UoA Keynesians made it up lol
I use sats as my unit of account, your hard on for USD is really embarrassing
You keep saying it but fail to understand the price of sats comes from the same place the price of USD comes from. You fail to see that USD itself has a price, relative to any other good. 1 USD = 0.5 bottles of water, 1.35 CAD, 6400 sats, whatever you want It's all supply and demand, USD is not special Anyway if you don't get it or don't understand, I'm too busy to explain it to you, sorry
well for one the main thing that makes the USD different is that it is the *most saleable good*. accepted practically anywhere. that is another of the primary characteristics that makes it "money" and bottles of water are not because they are only salable based in their utility that is why prices are *accounted* in USD. and not something else. so while i see your point it doesn't really express the reality of the situation people *account* in USD *units* because it is universally saleable. that is just how the world is not saying it *should* be this way but its a fact.
To elaborate on this point I would like to refer the reader to Ludwig von Mises "Theory of Money and Credit" pg 48, Money as a Price Index "Nowadays exchange is usually carried on by means of money, and since every commodity has therefore a price expressible in money, the exchange- value of every commodity can be expressed in terms of money. This possibility enabled money to become a medium for expressing values when the growing elaboration of the scale of values which resulted from the development of exchange necessitated a revision of the technique of valuation. That is to say, opportunities for exchanging induce the individual to rearrange his scales of values. A person in whose scale of values the commodity 'a cask of wine' comes after the commodity 'a sack of oats' will reverse their order if he can exchange a cask of wine in the market for a commodity that he values more highly than a sack of oats. The position of commodities in the value-scales of individuals is no longer determined solely by their own subjective use-value, but also by the subjective use-value of the commodities that can be obtained in exchange for them, whenever the latter stand higher than the former in the estimation of the individual. Therefore, if he is to obtain the maximum utility from his resources, the individual must familiarize himself with all the prices in the market. For this, however, he needs some help in finding his way among the confusing multiplicity of the exchange-ratios. Money, the common medium of exchange, which can be exchanged for every commodity and with which every commodity can be procured, is pre-eminently suitable for this. It would be absolutely impossible for the individual, even if he were a complete expert in commercial matters, to follow every change of market conditions and make the corresponding alterations in his scale of use- and exchange-values, unless he chose some common denominator to which he could reduce each exchange- ratio. Because the market enables any commodity to be turned into money and money into any commodity, objective exchange-value is expressed in terms of money. Thus money becomes a price- index, in Menger's phrase."
well for one the main thing that makes the USD different is that it is the *most saleable good*. accepted practically anywhere. that is another of the primary characteristics that makes it "money" and bottles of water are not because they are only salable based in their utility that is why prices are *accounted* in USD. and not something else. so while i see your point it doesn't really express the reality of the situation people *account* in USD *units* because it is universally saleable. that is just how the world is not saying it *should* be this way but its a fact.
To elaborate on this point I would like to refer the reader to Ludwig von Mises "Theory of Money and Credit" pg 48, Money as a Price Index "Nowadays exchange is usually carried on by means of money, and since every commodity has therefore a price expressible in money, the exchange- value of every commodity can be expressed in terms of money. This possibility enabled money to become a medium for expressing values when the growing elaboration of the scale of values which resulted from the development of exchange necessitated a revision of the technique of valuation. That is to say, opportunities for exchanging induce the individual to rearrange his scales of values. A person in whose scale of values the commodity 'a cask of wine' comes after the commodity 'a sack of oats' will reverse their order if he can exchange a cask of wine in the market for a commodity that he values more highly than a sack of oats. The position of commodities in the value-scales of individuals is no longer determined solely by their own subjective use-value, but also by the subjective use-value of the commodities that can be obtained in exchange for them, whenever the latter stand higher than the former in the estimation of the individual. Therefore, if he is to obtain the maximum utility from his resources, the individual must familiarize himself with all the prices in the market. For this, however, he needs some help in finding his way among the confusing multiplicity of the exchange-ratios. Money, the common medium of exchange, which can be exchanged for every commodity and with which every commodity can be procured, is pre-eminently suitable for this. It would be absolutely impossible for the individual, even if he were a complete expert in commercial matters, to follow every change of market conditions and make the corresponding alterations in his scale of use- and exchange-values, unless he chose some common denominator to which he could reduce each exchange- ratio. Because the market enables any commodity to be turned into money and money into any commodity, objective exchange-value is expressed in terms of money. Thus money becomes a price- index, in Menger's phrase."
no. obviously incorrect. if the pair fluctuates away from the underlying UoA price about a million traders notifications go off and they jump into the cheaper asset flip to the other and sell for free fiat this is why it matters what the UoA is, because as the most salable good everyone ends up trying to get it. you aren't learning. nostr:nevent1qqsyte02494s67k633vu8pc90y69ns3ss9drfkjl6ktc2npwgqgdv2spr4mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmp0qgs0npwnpyvheqz7zuvuwvv9k460c0hyqlturds40hhfn34vufvehwcrqsqqqqqp66pqqd
Its crops up in surprising ways with people who should know better smdh nostr:nevent1qqsw4egqv0xp79k5xsc3fz4vh6dqrttckjh2dn5mfgfmryu4gcc6unspz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsyg8zenmu7gzq8ulj5jj4kv50ph3muwz43f747vmr9ld2alrjdswgavpsgqqqqqqslwae8s
I'll just stick with I don't get it and don't understand and wouldn't get the explanation if someone took the time to give me one and skip the holier than thou cuntchutery boards.
doesn't seem like it should be THAT hard to understand. its like "the fish doesn't see the water" and some people dont care to think about it.
doesn't seem like it should be THAT hard to understand. its like "the fish doesn't see the water" and some people dont care to think about it.