Oddbean new post about login | logout The USD Denominates Everything --------------- Because apparently it needs to be said, the only reason you can make the conversion BTC->XMR or to whatever is because you have an underlying UoA denomination to compare them with. its the US dollar. it denominates everything. you are comparing two USD denominated prices. the price of one thing. as measured in USD. against. the price of another thing. as measured in USD. A comparison of the relative FIAT value of two things, that is what a price graph is. As long as the UoA is the US dollar.
That's silly. Euros, gold and whisky can be denominators just as easily. There's nothing special about the USD except the size of the govt that prints it.
you are welcome to do whatever you like. but the fact is, the world denominates things in USD. just a fact. sorry not sorry.
It was gold until 1971. It may be something else next year. BRICS countries already moving off USD standard, and they're like a third of the global economy.
BRICS countries have fuckwit governments that make the US govt look like choir boys.
Facts.
What's your "the best"? USD is certainly most popular.
That's what Unit of Account is. The one that's so popular all goods are priced in it.
Bro, any accounting package will let you choose any fiat denominator you like. The good ones will let you choose any commodity as well.
That isn't what a Unit of Account is dude.
Bro, you need to school
I'd be happy to see other units of account in niche circles. Hey maybe I'll participate in said niche circles even. They just might catch on. But there aren't any.
I love buying things in BTC or XMR. prices may still be denominated in USD originally but it's a good first step. as communities become more self-reliant and not needing to interact with fiat as much, they can start to price goods purely in what they themselves value.
Here in Australia, publications always use AUD. In Britain its the pound. BTC or gold would be my choice. Maybe XMR if the context is DNMs.
While it's true that you can have local units of account they all come back to the USD. sorry Australia. We can certainly argue that exceptions are made for countries that do not participate in the United States dollar homogeny. You mentioned BRICS. I think there are some nuances there, but basically you're right.
I might trade weed for propane, and the exchange rate might be geographically different, but generally speaking the rate is always track with the USD fiat denomination of each asset. USD denominated because that's the Units most things are Accounted for in. Any time the unit pair deviates from the underlying UOA values, it's an opportunity for a trader to step in and make free fiat. If weed is cheap versus propane, I can buy weed, flip it to propane, and sell it for free fiat. This action *forces* the trading pair to tend towards the underlying fiat UOA values. Basic economics.
That's actually quite incorrect. Basic economics. Read up on "Purchasing Power Parity", and then throw AML/CTF and sanctions into the mix.
bye
Wikipedia fixes this!
show your work or GTFO
Its framed on the wall of my office
The euro yen and usd are all backed by each other; but substations are still a principal. Even if it were walnuts to btc the transactability is still there
USD denominates everything, only because the State mandates it. If the free market determined the money, then the market would tend to the hardest asset out there. Since #Bitcoin has a lower rate of issuance now than gold, which had the lowest for a long time (hence, why we once had a gold standard), the market would naturally trend to a #Bitcoin Standard. This #Monero bro really needs a crash course in economics. We shoild send him a copy of nostr:nprofile1qqsyx708d0a8d2qt3ku75avjz8vshvlx0v3q97ygpnz0tllzqegxrtgpremhxue69uhkummnw3ez6ur4vgh8wetvd3hhyer9wghxuet59uxa93dl 's books nostr:nevent1qqsx94969d6yqlu0ngrkp7c2qcd5mmkxpk89y3wnmnf9nwyv72spn0gpzamhxue69uhhyetvv9ujumn0wd68ytnzv9hxgtczyruct5cfr97gqhshr8rnrpd4wn7raeq86lqmv9taa6vudt8ztxdmkqcyqqqqqqgmcgarm
I’m 100% a layman on this topic, but this makes sense to me. Probably why I’ve seen people say 1BTC = 1BTC and same could be said 1XMR = 1XMR if it’s just viewed as money. For the other side of the argument, it’s very difficult for me to wrap my head around how someone could say something is more valuable just because the fiat (USD) price of it is more. The entire point is that the fiat system is literally shit. Plus even though the price of Bitcoin could be going up in USD, while that’s happening the dollar is getting weakened. So like … my brain just does twirls trying to grasp it
For real. And it only stops when we are using a Unit of Account, iow, *pricing real goods in* a unit with predictable, known monetary policy. I imagine there would still be speculative fevers on new commodities and new news, natural disasters etc but generally prices would just be known and stable. Maybe for generations. It would change everything.
What does it mean to be "100% off the USD" if you have to interact with it? nostr:nevent1qqsx94969d6yqlu0ngrkp7c2qcd5mmkxpk89y3wnmnf9nwyv72spn0gpr4mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmp0qgs0npwnpyvheqz7zuvuwvv9k460c0hyqlturds40hhfn34vufvehwcrqsqqqqqpezkzts
Seems obvious but apparently many Bitcoiners think they can change unit of account by doing division in their head. nostr:nevent1qqsx94969d6yqlu0ngrkp7c2qcd5mmkxpk89y3wnmnf9nwyv72spn0gpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsyg8eshfsjxtusp0pwxw8xxzm2a8u8mjq047pkc2hmm5ec6kwykvmhvpsgqqqqqqs52wwe7
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