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Fiat currencies work because as a whole, we agree on its value. This is fuzzy thinking, as it doesn't even make sense to talk about the value of a currency - o
by ska 9y ago
Fiat currencies work because as a whole, we agree on its value.
This is fuzzy thinking, as it doesn't even make sense to talk about the value of a currency - only it's price. Mixing up concepts like this is what makes a lot of bitcoin and related conversations very muddled.
When you start off your thought with a category error, as you have here, it's hard to get anywhere useful.
- koonsolo 9y agoYou got me confused now. The price of $1 is $1, no? But the value is that I need 1 or 100 to buy a bread.
- ska 9y ago$1usd == $1usd is a tautology, not a price. how much you need to buy a loaf of bread is purchasing power. The price of a $1USD is always relative to another currency, you can't price it in isolation. None of these things are valuations.