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0 sats \ 2 replies \ @jk_14 2 Nov 2024 \ on: MONEY CLASS OF THE DAY: Macro Purchasing Power Under Fiat, Gold, and Bitcoin econ
everyone will try to spend the used one, and keep the high-quality one. But the merchant is in the exact same position, with incentives reversed. He would want the brand new one, not the significantly used one.
No, he is not in the same position. Because only I see the content of my wallet - while he doesn't see it. And I give him ten-dollar banknote which I prefer: so, a used one, but still in acceptable condition for anyone. He simply doesn't know if I have another ten-dollar banknote (brand new) inside my wallet or not.
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0 sats \ 1 reply \ @denlillaapan OP 2 Nov 2024
Still have to make a judgment call, backward induct. Everyone knows that everyone keeps better notes out, so everyone negotiates/gambles for better.
You're not proving anything here, sir.
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0 sats \ 0 replies \ @jk_14 2 Nov 2024
I give him ten-dollar banknote still in acceptable condition for anyone - and he must accept it.
so, I do prove that your: "merchant is in the exact same position" is painly false thesis, and this way whole your thesis about the Copernicus' Law as well... ;)
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