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5 sats \ 1 reply \ @birdeye21 10 Aug 2023 \ on: Why you need to divide everything around you by 21 million bitcoin
Yup. Bitcoin isn't becoming "more" valuable, fiat is becoming less. It's probably what most nocoiners have the hardest time understanding. 1BTC = 1BTC
The revelation satoshi had is that money's value should remain stable, untampered with, while innovation drives the prices of everything down.
BTC merely captures that efficiency gain and distributes it via purchasing power to the world rather than the 1%
Yes. The other stuff is being produced more. The dollars, the other fiat currencies. And their value are being discovered against Bitcoin every day.
So when the price of Bitcoin fluctuates (drops or increases) that is the market discovering what Bitcoin is worth against all the stuff that is being created.
You can indeed say: you have to give me more of the stuff you are printing for my bitcoin. That means the price goes up.
Or you have to give me less of that stuff, so the price goes down.
Bitcoin is not volatile. What is volatile is the price of the dollar, against the Bitcoin!! The discovery process is highly volatile. People basically do not know the value of one thing Bitcoin against the other thing the dollar. They are trying to price the new thing against the thing that has been around for 1 century.
It is like a discovery process where every single second we discover how many dollars we think Bitcoin is worth.
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