Thread - Nostr Hypermedia

Absolutely correct. No Bitcoin company is viable and never will be. As for pegging the Bitcoin price to a dollar value, you don't have a reliable income stream in Bitcoin then. A Bitcoin company is only a Bitcoin company if it earns in Bitcoin and holds it to pay suppliers in Bitcoin later. Pay and be paid, money goes in circles. However as a business you need to have a somewhat reliable, predictable income stream. If the electricity bill is due in 3 months will you have earned enough to pay it? Like that. You don't have to be a "business", every regular employed Joe has to plan like that. If you constantly adjust your Bitcoin price to whatever the dollar value demands you can't predict your Bitcoin income well enough. The only option you have then is to immediately convert it to dollars on reception and pay your suppliers in dollar. But then you're not a Bitcoin business anymore. You're just a dollar business that pretends to be a Bitcoin business as a marketing gimmick. You will hold dollars instead and then it's back to worrying about the stability of the dollar which you wanted to avoid in the first place. 99% of so-called Bitcoin businesses are that. It's make-believe to suck the money out of a few starry eyed and not so clever Bitcoin dreamers. That's why I keep asking questions like that and usually not getting an answer because the answer would be rather ugly: View quoted note →

↑ Parent

Replies (3)

⛩oizen moizen@moizen.xyz 1 year ago

> Bitcoin is fundamentally unable to achieve that, the best we have today is central bank fiat from civilized countries Would you have a take about El Salvador disclosing and moving to a physical location within its territory the keys of its bitcoin? (

The Mempool Open Source Project®

Explore the full Bitcoin ecosystem with The Mempool Open Source Project®. See the real-time status of your transactions, get network info, and more.

Something alike, `El Salvador has X amount of bitcoin, and also has X amount of land, and people, so its value should be...'. What I'm meaning is, isn't valuation also a challenge fiat central banks has? although I do get central banks go from 0 to infinity to start measuring, whereas bitcoin starts from a point (21 million) and goes towards 0

1 replies ↓

frphank 1 year ago

Yes absolutely, central banks need to measure the size of the economy and adjust the amount of money in circulation accordingly. They do a so-so job, as we can see now they exceed their inflation targets, not good, I have some ideas there how to improve this and it only works for an economy of skilled people. But at least they have some mechanisms for adjusting the amount of money in circulation, mostly through adjusting the interest rate on money lent into existence. And, mind you, the economy constantly changes, it shrinks and grows, so the money has to be constantly adjusted. In the past the economy has mostly been growing so the question is just by how much, but sometimes there are recessions or at least the threat of a recession as during COVID. With Bitcoin there is no mechanism to adjust the amount in circulation. The amount will be constantly out of balance with the size of the Bitcoin economy, if there was ever to be one. Of course Bitcoin is so bad at stability that any attempt by even just one or a few businesses to trade in Bitcoin will immediately fail and the businesses will revert to fiat or die. It's kind of like the Ebola virus which kills its victims so hard and fast that they barely have any chance to spread it so any Ebola outbreak naturally comes to a quick end.

frphank 1 year ago

Not sure I can follow all of this including metaphors but you will never be able to use Bitcoin to measure ("weigh") costs of products or cost of living because Bitcoin's supply doesn't change in accordance with a changing Bitcoin economy.