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0 sats \ 8 replies \ @CliffBadger 7h \ parent \ on: Saying 1 btc = 1 btc when fiat price goes down is stupidity/cope bitcoin
But we don't know if $111k is worth 1 Bitcoin in the future either, so why would you award the "unit of account" prestige to USD? All USD prices are presented digitally and could double in a matter of months when something in the banking system finally snaps. At least if you use BTC as the unit of account, you know that the price changes will generally be in your favor. "Ultimately" the USD is going to zero and we have to use sats as the unit of account because that's what everyone has to adopt.
I also think that 1 bitcoin will be worth more than $111k in the future. This is why I hold bitcoin and very little USD.
That does not make it my unit of account. If today bitcoin's USD value was cut in half, the purchasing power I saved up over my life would also be cut in half. It doesn't matter that I have the same number of sats. Personally I believe the value would recover and have held through two 70%+ drawdowns. That doesn't change the fact that my actual wealth (the groceries, cars, homes) I could purchase DID in fact decline 70% at that time.
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My thought is that unit of account is not 'awarded' or one's opinion.
Unit of account is what your grocery store or car dealership or mortgage prices goods/services in. Perhaps for locals in el zonte (although I don't think even there this is true) the unit of account is indeed sats.
It is simply a fact that the unit of account practically everywhere is the fiat currency of your local country today. It isn't bitcoin, it isn't gold and it isn't silver. I agree with you that most, if not all, fiat currencies will eventually fail (historically they are not replaced by hard currency, but rather another new shiny fiat currency), and that bitcoin may become a unit of account. But that is not reality today.
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But other people listing their prices in USD doesn't mean you have to run your calculations in the same terms. You're half the transaction. I can wait until the price of a $50k car comes down to 0.1 BTC before I offer to buy it, regardless of how the vendor chooses to display the price.
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The price is listed in USD. There is 0 calculation involved. That is called the unit of account. A gallon of milk is $2.99. The $ (USD) is the unit of account here.
Now, you can choose to do a calculation on top of that. You can say, well I'd like to wait until that $50k USD car becomes 5 ounces of gold before I buy it. Or perhaps 0.1 btc or whatever you'd like. But those are just secondary calculations you are doing.
Perhaps the issue is we aren't aligned on definition of the term "unit of account":
A unit of account is the standardized measure for stating the value of goods, services, and financial obligations, serving as a common standard for pricing and economic comparison. It allows for consistent valuation, making it easier to track assets and liabilities in financial statements, understand the value of different products, and facilitate economic planning.
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A common standard can just mean more than one person. It doesn't have to be mainstream.
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Think we've reached the stage of "well that depends on what your definition of 'is' is".
If we can't find agreement that in your example of the $50k car, USD is clearly the standard unit of account (vs. bitcoin) then I think we're just spinning our wheels.
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It's the vendor's standard unit of account. Someone else has to agree to sell a certain amount of Bitcoin in order for the transaction to occur.
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Its not only the vendor's standard unit of account. You (the buyer) also has to adhere to that standard unit of account by converting whatever asset you want into the standard unit of account in order to complete the transaction.
Every bitcoiner (except a couple in el zonte or bitcoin jungle?) conforms to the fiat currency standard of account for their geography when they want to make a purchase.
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