Oddbean new post about login | logout This is a “So you hate waffles?” strawman reply dude. Nowhere in my post did I say that or anything close. I said their current value is derived from fiat, and at this moment in time it has to be linked back to that valuation because there’s been no alternative standard determined by society. Once society understands what WE understand (the value of Bitcoin) then things can be priced and compared appropriately because it will reach UoA status.
That's where you're wrong. People don't derive the value of their eggs by using paper with numbers on it. People derive the value of eggs by determining they want to eat them and what they can give in exchange for that want. Value is subjective. Value is not derived from fiat.
You’re right, the value is derived from the fact that it is food, however the price value is able applied to the goods because of the standard unit (1 = 1). I believe the point has been blurred because of the examples being used to explain it. The initial comment and focus of the discussion was about the value of one asset comparative to another (finance tickers, XMR/BTC), in which case they cannot have value without being denominated in a standardized UoA like fiat. In terms of purchasing goods, I fully agree with you that it is subjective and more people should use Bitcoin as their preferred currency in circular economies. We are just not there yet.
my brother in Christ, please let me show you the light. This is the full valuation 101 from NYU stern from the legend himself. Thank me later. https://www.youtube.com/watch?v=znmQ7oMiQrM&list=PLUkh9m2BorqnKWu0g5ZUps_CbQ-JGtbI9&ab_channel=AswathDamodaran
the value isn't derived from fiat, this is a wrong statement. it's priced in fiat, but it's value does not come from it's relation to another currency. what you're saying is that bitcoin needs to replace the dollar standard of exchange, which in time it will. The problem is USDT, the digital dollar which still seeks to price every thing in dollars. If you want to start this process, then simply change your medium of exchange from fiat to btc. Price everything in BTC or sats and work from there, and voila, you've achieved the 'standard'. Now get more merchants and plebs to use it and voila, we have a 'global standard' Be prepared for war thought
not "value" methinks, its "price" value is in the eye of the beholder. price is the local representation of the value as rendered in a unit of account.
Yeah I definitely misspoke there, in my mind I was thinking of price but said value, corrected myself in my next reply haha