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27 sats \ 1 reply \ @pillar 11 Nov 2022 \ on: What if producers only accepted Bitcoin? bitcoin
Demand for Bitcoin would increase, stimulated by the consumers who want to buy those products and need to get their hands on some satoshis to pay for them. More demand, same supply, higher prices. It's the same reason that makes the petrodollar agreement increase the demand (and value) of dollars.
On a personal level, if you make a discount for your products or services if people pay you in Bitcoin (or charge an extra fee for paying in fiat), you are pushing for adoption yourself. A similar action when you are the consumer is to offer yourself to pay extra if the other party accepts your Bitcoin instead of fiat.
If enough people keep on behaving this way, Bitcoin gets used more and more, and demand for it increases. At the same time, demand for fiat decreases. The price of Bitcoin (measured in fiat) going up is a signal of this happening.
Eventually, when nobody wants fiat anymore, Bitcoin has reached the end stage and pricing in fiat loses meaning.
I think it's also worth noting what the cost side of the ledger looks like.
If someone is only willing to accept Bitcoin, they will be foregoing potential sales to those who aren't in Bitcoin (and aren't close enough to adopting that this product will bring them in).
This will mean demand for their product is lower than it would otherwise be and they'll be selling less product at lower prices.
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