ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ's avatar
ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ me@mleku.dev 1 year ago
what you just talked about in the last sentence is called "mark to market" you clearly need to read some texts on economics if you don't understand the function of money as a means to denominate relative value of goods (and services) available on the market all market goods and services are worth all the money that can be spent on them decrease the supply of goods and the price of the assets goes up because there is more money to go to them increase the supply of money and the prices of goods goes up to compensate, as more money is going to be available to spend it's really not complicated i don't get what you are confused about
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npub1wuhe...h6ym 1 year ago
I assumed that "estimates of total worldwide household wealth" in the original author's text used the mark to market technique. That wealth is a composition of assets that might include money but is primarily non-money assets. My point is that if we estimate the wealth at X trillion money units this estimate does not imply that there must be X trillion money units in existence. We could have X/2 trillion or X/5 trillion money units without a contradiction to the X trillion wealth estimate. X/5 trillion would not imply that the wealth estimate is wrong. It could be that X billion units is OK! I do not think we can say there is an exact ratio. I am becoming more sure that the author makes an incorrect assumption, and if it is incorrect, it is also incorrect of the author to suggest Bitcoin's price would have to reach those levels when it is the money of the world. No doubt we agree that as more people use Bitcoin more frequently as a medium of exchange there will be an increase in Bitcoin demand leading to an increase in price relative to USD and other goods and services, especially as folks prefer to use Bitcoin instead of USD and there is a decrease in demand for USD. In short, I don't know what the price of Bitcoin should be as it becomes the world's money. The author's estimate of the equivalent of 10 million (2010ish) USD seems high based on the given reasoning. You are right that the US dollar is being debased. As the US dollar becomes not money and Bitcoin becomes money we would be estimating asset values in Bitcoin. We wouldn't compare to US dollars, we'd have to use other techniques.
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