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> If you have a $1 bill from 1973 it still can be exchange for a 2021 $1 bill. Nominally. How do you grok the practice of coin-clipping? You hand in one gold

by noch 6y ago

> If you have a $1 bill from 1973 it still can be exchange for a 2021 $1 bill. Nominally. How do you grok the practice of coin-clipping? You hand in one gold coin which is then clipped and you are given a coin with a smaller percentage of gold in it. 1 solidus is still nominally worth 1 solidus. But it's really worth 0.x a solidus. Does this debasement matter? The coin has the same name but it's not the same coin. > bitcoin has also gained and (occasionally lost) buying power. Over the long term, Bitcoin can only gain and has only gained purchasing power, algorithmically. Unlike with fiat, your proportional share, based on your stack of coins, of the total value in the economy has not changed. This assumes a Bitcoin Standard where bitcoin is the world currency. (Some of us already live on a Bitcoin Standard preemptively.) With fiat, your share has been debased. 1 usd is not equal to 1 usd over time. With Bitcoin, your ruler is always accurate. 1 satoshi = 1 satoshi over time unto eternity. Fiat cannot make that claim. That's what we mean when we say 1 btc = 1 btc. > "1 oz of Gold has always been worth 1 oz of gold." Now you see why gold was the world's hardest money. It's chemical stability guaranteed this statement. Hardly any other commodities behave this way. Unless you have examples?

SketchySeaBeast 6y ago
> How do you grok the practice of coin-clipping? You hand in one gold coin which is then clipped and you are given a coin with a smaller percentage of gold in it. 1 solidus is still nominally worth 1 solidus. But it's really worth 0.x a solidus. Does this debasement matter? The coin has the same name but it's not the same coin. That's not how modern money is reckoned. It's a neat aside, but it has nothing to do with a modern currency. > Over the long term, Bitcoin can only gain and has only gained purchasing power, algorithmically. True. As of this moment it's gained before. Day to day it's an entirely different matter. > Unlike with fiat, your proportional share, based on your stack of coins, of the total value in the economy has not changed. This assumes a Bitcoin Standard where bitcoin is the world currency. (Some of us already live on a Bitcoin Standard preemptively.) Bitcoins are being generated. It's a planned inflation - how do you reckon that with the share not changing? You have less porportions of the total Bitcoin supply. Unless wealth is created from nothing with every bitcoin generated you've lost a proportion of the wealth. It only works right now because it's being measured against things, if it ever became the determining standard, you'd be experiencing inflation with it. > With fiat, your share has been debased. 1 usd is not equal to 1 usd over time. With Bitcoin, your ruler is always accurate. 1 satoshi = 1 satoshi over time unto eternity. Fiat cannot make that claim. Again, this is a nonsense argument. You either have to accept that the 1973 $1 bill is still worth a dollar (relative to the dollar) or you have to admit that a 2010 Bitcoin is not worth the same as a 2021 bitcoin. > Now you see why gold was the world's hardest money. It's chemical stability guaranteed this statement. Hardly any other commodities behave this way. Unless you have examples? Silver. Sheep, salt. 1 measure of any commodity has always equaled itself. Bitcoin is just a commodity right now. That's it. If it becomes the standard currency it'll experience deflation as the supply grows just like any other currency.
- noch 6y ago
  Lol. Okay. You win. You are right about everything. Thanks for your time.

by noch 6y ago

SketchySeaBeast 6y ago

> How do you grok the practice of coin-clipping? You hand in one gold coin which is then clipped and you are given a coin with a smaller percentage of gold in it. 1 solidus is still nominally worth 1 solidus. But it's really worth 0.x a solidus. Does this debasement matter? The coin has the same name but it's not the same coin. That's not how modern money is reckoned. It's a neat aside, but it has nothing to do with a modern currency. > Over the long term, Bitcoin can only gain and has only gained purchasing power, algorithmically. True. As of this moment it's gained before. Day to day it's an entirely different matter. > Unlike with fiat, your proportional share, based on your stack of coins, of the total value in the economy has not changed. This assumes a Bitcoin Standard where bitcoin is the world currency. (Some of us already live on a Bitcoin Standard preemptively.) Bitcoins are being generated. It's a planned inflation - how do you reckon that with the share not changing? You have less porportions of the total Bitcoin supply. Unless wealth is created from nothing with every bitcoin generated you've lost a proportion of the wealth. It only works right now because it's being measured against things, if it ever became the determining standard, you'd be experiencing inflation with it. > With fiat, your share has been debased. 1 usd is not equal to 1 usd over time. With Bitcoin, your ruler is always accurate. 1 satoshi = 1 satoshi over time unto eternity. Fiat cannot make that claim. Again, this is a nonsense argument. You either have to accept that the 1973 $1 bill is still worth a dollar (relative to the dollar) or you have to admit that a 2010 Bitcoin is not worth the same as a 2021 bitcoin. > Now you see why gold was the world's hardest money. It's chemical stability guaranteed this statement. Hardly any other commodities behave this way. Unless you have examples? Silver. Sheep, salt. 1 measure of any commodity has always equaled itself. Bitcoin is just a commodity right now. That's it. If it becomes the standard currency it'll experience deflation as the supply grows just like any other currency.

noch 6y ago
Lol. Okay. You win. You are right about everything. Thanks for your time.