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41 sats \ 0 replies \ @SimpleStacker 27 Dec 2024 \ on: Implications Of Alby's New Pricing bitcoin
I feel like a lot of the debates about Bitcoin as a MoE vs. a SoV are circumstantial rather than "ontological". That is, they're debates about the function Bitcoin fills now, as opposed to what Bitcoin is or can be.
I think as things currently stand, it makes total sense that Bitcoin is viewed more as a SoV than a MoE:
- Most daily expenses are still priced in fiat, and thus for financial stability it is more useful to have income denominated in fiat.
- Gresham's Law. If we expect the fiat-price of Bitcoin to keep going up, people will naturally prefer to spend fiat and hold Bitcoin versus the other way around.
- The "user interface" of fiat is still more intuitive for most people; using Bitcoin can seem complicated and scary, even for people who are convinced of Bitcoin's utility.
I try to support the Bitcoin economy when I can, but I'm in no rush for Bitcoin to be commonly used as a MoE. I think at this stage of Bitcoin's adoption cycle, it is expected that it will function more as a SoV than a MoE, for all the reasons above. This was also recognized and discussed even in an academic papers. That doesn't mean Bitcoin can't function as a MoE in the long run, but it will take time to get there