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50 sats \ 3 replies \ @SatoshiNakanodo 3 Jan \ on: MONEY CLASS OF THE DAY: Yes, We Can Have More Than 21 Million' Worth of BTC econ
I'm a slow learner so please excuse me if I'm misunderstanding, but...
When BTC is the global unit of account, doesn't that mean that 21 million BTC must account for the max value of everything in the global economy?
If the denominator (21M) remains constant and the numerator changes (up or down) then the BTC price of everything within the economy would simply adjust (up or down) as the total value of the economy grows or shrinks.
Do we need to bring bridges and skyscrapers and the space/time continuum into this?
What am I missing?
No, that's exactly wrong—and why I wrote the piece.
Easy illustration: the world has $300-trillion something of real estate, $100-trillion-something of stocks, but only $30trillion of base money (maybe 100trn of global m2).
How can that be?
Precisely because what I say in the piece: assets are traded individually, with prices set on the margin, not in aggregate and all at once.
All the world's assets never have to pass through the money supply (21mil bitcoin) at any one point.
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Ok, I think I'm seeing it. I need to go back and re-read that Money Class. You might need to make a white board video series for ritardos like me.
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Hahah sure.
There must be some on the internet already. I'll find some
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